Żabka signed a long-term virtual PPA with Modus Asset Management

  • 2023-06-22

Żabka Polska sp. z o.o. and Modus Asset Management’s managed companies have signed a 10-year virtual Power Purchase Agreement (PPA). Under the PPA, Modus Asset Management will supply approximately 50 GWh of green electricity per year, generated by a group of photovoltaic power plants with a total capacity exceeding 65 MW. Thanks to this contract, Żabka stores will obtain energy from renewable sources, which accounts for over 9% of its annual electricity consumption.

The first deliveries of energy from Modus Asset Management photovoltaic power plants for Żabka already started in May 2023 and the contract will last for 10 years.

Modus Asset Management is entering the Polish PPA market for the first time. Having already contracted over 88 GWh in Lithuania, the company aims to support Polish corporates in achieving their decarbonization and net-zero goals. In the coming years, Modus Asset Management plans to provide a significant new capacity of renewable energy projects for corporate off-takers in Poland.

“Hedging electricity costs and reducing carbon footprint through PPA is gaining popularity among corporate entities in the region. We are proud to drive positive change towards a more sustainable decarbonized future, alongside top-tier partners like Żabka Polska. With Modus Asset Management’s growing portfolio of renewable energy generation assets in Poland and the Baltic States, we anticipate strong growth in PPA offtake structures” – says Povilas Pečiulis, CEO of Modus Asset Management.

“We are paying particular attention to the issue of energy demand, which is constantly rising due to the development and increasing the diversity of the commercial offer in our business activity. Today, 100% of the electricity in own operations comes from renewable energy sources. However, we also involve Żabka stores run by franchisees in our actions. More than 57% of the electricity they consume comes from renewable sources - it is produced by their own photovoltaic installations or ones covered by guarantees of origin” – says Adam Manikowski, Executive Vice President of the Management Board, Managing Director of Żabka Polska.

Sustainable action is needed to combat climate change, and business success should not come at the expense of the environment. Therefore, activities supporting climate protection are one of Żabka's priority goals. Żabka Group has adopted a comprehensive Responsibility Strategy (ESG - Environmental, Social and Governance). It is integrated with the Group's business strategy, defines its goals and indicates the directions it intends to follow. The Responsibility Strategy consists of four pillars, each of them defines the areas of Żabka’s activities, as well as quantitative and qualitative goals. Thanks to them the company fulfills its mission, which is to create value by simplifying people's lives and enabling them to free up their free time, while promoting a responsible approach to the selection of products and building relationships with customers, franchisees, business partners and the wider environment. 

The Green planet pillar defines Żabka's ambitions in the field of decarbonization. The company has committed to reduce by 25% (2020 base year) GHG emissions in its Scope 1 and 2 by the end of 2026, as well as reducing the carbon intensity of stores by 70%, including the transition to electricity from renewable sources in the franchise network and initiatives to reduce energy consumption and other sources emissions.

“We continue the activities defined in the decarbonization plan of the Żabka Group, which has been validated by SBTi and are part of our agreements with financial institutions. The signing of a virtual contract for the purchase of green electricity will allow us to improve the energy efficiency of the entire chain and will make it easier to further reduce the scope 3 emissions in franchisee stores. The PPA is yet another step in diversifying the electricity portfolio while reducing environmental impact” – says Marta Wrochna-Łastowska, Member of the Management Board, Chief Financial Officer, Żabka Group.

About Modus Asset Management

Modus Asset Management is a regulated and licensed management company with a focus on renewable energy infrastructure in the Central European region, delivering outstanding institutional-grade opportunities to investors while expediting energy transition in the countries of focus​. To date, Modus Asset Management has launched 4 renewable energy-focused funds. Currently, its portfolio includes 195 MW solar PV assets across Poland and Lithuania and aims to increase the size of the portfolio to more than 600 MW including other RES, such as onshore wind and battery storage.