How Renewable Energy PPAs Support VMO2’s Net Zero Goals

The fluctuations in global energy prices over recent years have forced companies to focus more on where and how they obtain their energy. With the added focus on sustainability and carbon reduction, power purchase agreements with renewable energy suppliers are becoming an increasingly popular tool for companies of all sizes. 

These deals lock in a stable price for low-carbon generation, increasing predictability and insulating against price shocks. 

As part of its latest deal, VMO2 will receive power from a new solar farm in Suffolk, east England, expected to begin operations in 2027, covering approximately 5% of the company’s total energy requirements.

The arrangement follows VMO2’s 2025 agreement with The Renewables Infrastructure Group for wind energy supply. 

Combined, these agreements could account for around 20% of Virgin Media O2's energy supply, reinforcing the company's commitment to use renewable energy at sites where it makes sense while supporting UK power network resilience and renewable energy generation.

Advancing sustainability targets

The solar agreement forms part of Virgin Media O2's approach to achieving net-zero carbon emissions across its entire value chain by the end of 2040.

"This agreement with egg Power is the latest step in Virgin Media O2's journey to achieve net zero emissions by the end of 2040,” says Mark Hardman, Director of Finance Operations at Virgin Media O2.

“We are committed to growing and operating our business in a way that's good for people and the planet, where we are cutting carbon, securing renewable energy on a long-term basis, and sourcing renewable energy generation from the UK."

Meeting growing energy demands

egg Power is a wholly owned subsidiary of Liberty Growth, the investment arm of telecommunications company Liberty Global. It focuses on scalable technology, media, sports, and infrastructure. VMO2, meanwhile, is a 50/50 joint venture between Liberty Global and Spanish multinational Telefonica.

egg Power is tasked with meeting the clean energy needs of telecoms operators, digital infrastructure providers, and other energy-intensive industries amid rising demand. This is being driven, in part, by a surge in AI adoption and exponential growth in data usage, creating a heightened need for reliable, sustainable power at scale.

"This agreement is a further endorsement of our mission to become the clean energy supplier of choice for telcos and digital infrastructure providers in the UK,” says Ilesh Patel, Head of egg Power at Liberty Global.

“With funding in place for more projects, we are excited about the next chapter as we continue to deliver reliable, price-predictable renewable power that strengthens the UK's energy security, underpins long-term growth and meets the needs of large energy users."

Strategic choice

VMO2’s recently-launched responsible business strategy moves away from the narrow framing of “sustainability”. The firm’s Chief Sustainability Officer, Dana Haidan, recently told Sustainability Magazine that the term can push teams into “greening the business”, without addressing wider issues that matter to customers and stakeholders.

Its new responsible business agenda centres on two priorities: delivering business resilience and driving digital wellbeing.

“We are evolving from a traditional sustainability programme into a broader responsible business strategy,” Dana explained. 

“Because the issues we’re addressing – like climate resilience, digital wellbeing, resource scarcity, and many more – go far beyond the traditional boundaries of ESG. These are not peripheral issues; they are central to the long-term success of a digital infrastructure company."

PPAs on the rise in telecoms

The renewable PPA market has long been dominated by the IT and heavy industry sectors. But the telecoms sector is growing rapidly. 

PPAs with a capacity of just under 2.5GW were contracted in the European telecoms sector between 2013 and the start of October 2023, according to RE-Source, a corporate PPA platform. The likes of Telecom Italia, Vodafone and Deutsche Telekom are getting in on the action.