Lululemon signs 100% renewable energy deal with Enel Green Power

Enel Green Power North America, Inc. announced that it has signed a virtual power purchase agreement (VPPA) with Lululemon Athletica Inc., which will allow the athletic apparel company to meet its goal of sourcing 100% renewable electricity across its direct operations in North America by 2021.

Lululemon will purchase the electricity delivered to the grid by a 15 MW portion of Enel Green Power’s North America Azure Sky Wind project in Texas, equivalent to the electricity used by all of lululemon’s company-operated stores, offices, and warehouse facilities in North America, through the VPPA, which was facilitated by LevelTen Energy. This agreement is Lululemon’s first renewable energy VPPA, demonstrating the company’s commitment to achieving its Impact Agenda goals.

Georgios Papadimitriou, Head of Enel Green Power in the US and Canada, said that as more retailers work to address the circularity of their operations, from product design and manufacturing to packaging and end-of-life, industry leaders like lululemon are also prioritizing renewable energy as a centerpiece of their climate and sustainability efforts. The lululemon agreement also highlights how enterprises with a distributed operating footprint can use VPPAs to meet their emissions reduction targets while simultaneously supporting the installation of new renewable energy to the electric grid.

Lululemon will accomplish its renewable energy targets through the VPPA by aggregating the electrical load across all of their company-operated stores, offices, and distribution hubs in North America and acquiring wind energy equal to their operational footprints electricity demands. Lululemon will use renewable energy credits to reach 100% renewable electricity for its global operations, while also looking for ways to assist net-new renewable energy development in the places where it operates. LevelTen Energy advised lululemon on the VPPA, using its Energy Marketplace and PPA analytics to aid the company in project selection and negotiations.

Lululemon’s new announcement will help the company meet its RE100 commitment by 2021 and advance toward its Impact Agenda targets, which include Science-based Targets by 2030. The Effect Agenda, which was released in October 2020, defines lululemon’s approach to becoming a more sustainable and equitable organization, as well as its vision to reduce environmental impact and contribute to a healthier world.

Esther Speck, VP Sustainable Business and Impact at lululemon, said that Lululemon is committed to assisting in the creation of a sustainable and inclusive apparel industry that addresses the serious implications of climate change, including working toward a net-zero future and reducing carbon emissions across its value chain. The urgent necessity to act immediately is plainly demonstrated by science. As a result, they’ve worked with Enel Green Power North America, among others, to expedite the transition to renewable energy and minimize their carbon footprint. This agreement marks a significant step forward in their quest for cleaner energy and a healthier planet.

The Azure Sky Wind and Storage project is located west of Dallas-Fort Worth in Throckmorton County, Texas, and will contain a 350 MW wind turbine and approximately 137 MW of battery storage. It is planned to be operational in the first half of 2022. The project, which includes 79 wind turbines, is being built in accordance with Enel Green Power’s North America Sustainable Design and Construction model and is estimated to generate over 1,300 GWh per year, which will be delivered to the grid and used to charge a battery at the same location.

The battery storage system will be able to store the energy produced by the wind turbines while also offering grid flexibility services. The system will be one of the world’s largest battery storage systems, with a capacity of roughly 137 MW.