Cisco's Strategy for Solar Power Across Polish Operations
Technology giant Cisco has signed a 15-year virtual power purchase agreement with R.Power, securing 470 GWh of solar energy from four upcoming projects across Poland.
The deal marks another significant renewable investment in Central Europe, a region experiencing solar capacity growth at double the pace of other EU areas.
The Visegrad Group – comprising Poland, Hungary, Slovakia and Czechia – witnessed solar output multiply sixfold from 2019 to 2024, highlighting the sector's rapid expansion.
Facilitated through SR Inc's Net Zero Consortium for Buyers, Cisco's VPPA will enable the construction of solar installations at Wydartowo, Bieżyce, Ostrzeniewo III and Nowy Zagór III, with operations scheduled to commence in 2027.
- A virtual power purchase agreement, or VPPA, is a financial contract where a corporate buyer agrees to purchase renewable energy credits and pay a fixed price for electricity, while the actual power is sold into the grid by the developer.
- The buyer receives payments when market prices exceed the agreed strike price, or pays the difference when market prices fall below it, allowing companies to support new renewable projects and hedge against price volatility without physically receiving the electricity.
- This is the key difference between a PPA and a VPPA – the latter does not see the company actually receive the energy that it is paying for.
The agreement constitutes purchaser-caused renewable energy capacity, with the projects being directly made possible by Cisco's long-term commitment rather than backing pre-existing infrastructure.
"We are proud to support the growth of renewable energy in Europe through this partnership," says Evan Scott Brown, Renewable Energy & Utilities Manager at Cisco.
"This agreement not only aligns with Cisco's commitment to powering a more resilient energy future, but also directly supports operational needs, including the expansion of our lab facilities in Krakow."
Corporate renewables demand grows
The partnership between Cisco and R.Power could demonstrate the increasingly central position that technology firms occupy in renewable energy development through long-term procurement agreements.
Virtual power purchase agreements have gained traction as a mechanism, enabling corporations to back new renewable capacity whilst managing price volatility, particularly in markets where direct procurement presents challenges.
"Cisco's leadership reflects the growing role of global enterprises in catalysing regional renewable energy development," says Jim Boyle, CEO of SR Inc, whose organisation brokered the agreement.
"This agreement showcases how corporate buyers can drive impact through diversified, high-quality clean-energy investments."
For Jim, the partnership could highlight the value of procurement platforms in connecting corporate buyers with renewable developers.
Poland accelerates energy shift
Poland's electricity grid remains among Europe's most carbon-intensive, lending particular weight to corporate renewable commitments for the country's energy transition.
The four solar installations will add to clean energy capacity in a market where coal-fired generation continues to dominate.
"Partnering with Cisco reinforces R.Power's position as a leading multi-technology renewable energy producer in Central Europe," says Rafał Hajduk, Chief Commercial Officer at R.Power.
"Cisco's long-term commitment directly enables new solar capacity in Poland and supports the wider adoption of clean energy underway across the region."
Rafał stressed that the agreement would bolster broader clean energy adoption initiatives throughout Central Europe.
All sustainability, net zero and sustainable supply chain leaders should attend:
- Sustainability LIVE: The Net Zero Summit - QEII Centre, London, March 4-5
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Co-located with Procurement & Supply Chain LIVE, these events brings together CSOs, ESG leaders and senior decision-makers at a moment when sustainability, supply chains and commercial performance are increasingly interconnected.
Tickets can be booked online today for The Net Zero Summit and The US Summit. Group discounts available.
R.Power scales European operations
Warsaw-based R.Power has transformed from a Central & Eastern European renewable producer into a pan-European independent power producer, with 1.4 GW of projects either operational or under construction.
The company's pipeline features over 10 GW of grid-secured battery energy storage systems – both standalone and hybrid with solar photovoltaic (PV) – spanning Poland, Romania, Germany, Italy, Portugal and Spain.
R.Power's equity investment partners include the European Bank for Reconstruction and Development and Three Seas Initiative Investment Fund, with debt financing provided by institutions such as BNP Paribas and ING.
The company's commercialisation approach encompasses contracts for difference, capacity auctions and long-term offtake agreements with corporate buyers.
The Cisco deal expands R.Power's corporate offtake portfolio as it continues scaling its multi-technology renewable platform across European markets.
Executives
Evan Scott Brown
Renewable Energy & Utilities Manager
Jim Boyle
CEO
Rafał Hajduk
Chief Commercial Officer