Axpo McDonald’s PPA Linked to 200-MWp Solar

• Axpo’s 200-MWp Spain solar PPA with McDonald’s delivers renewable power, cuts Scope 2 emissions, and locks in long-term energy price certainty—while de-risking revenues through flexible balancing.

Axpo has signed a power purchase agreement with McDonald’s to supply renewable electricity from a 200-MWp solar complex in Spain. The deal is aimed at helping McDonald’s meet decarbonisation goals, particularly reducing Scope 2 emissions, while giving the chain greater energy price predictability through a long-term contract.

For Axpo, the corporate offtake helps de-risk revenue and can support project financing in a market where wholesale dynamics, price spreads and grid congestion can make merchant power more volatile. Such PPAs typically require balancing and shaping services to match retail consumption patterns with solar generation, especially as Spain’s PV penetration grows and midday prices weaken.

How will Axpo’s 200-MWp Spain solar PPA cut McDonald’s Scope 2 emissions?

• The 200-MWp solar PPA lets McDonald’s buy electricity covered by renewable energy certificates/contracted generation, replacing part of its grid electricity with solar-sourced power.
  
• Because Scope 2 emissions are driven by the carbon intensity of the electricity a company consumes, shifting contracted consumption to renewable electricity reduces the emissions associated with that electricity use.
  
• The long-term nature of the contract supports McDonald’s decarbonisation pathway by locking in a cleaner electricity mix over many years, rather than relying on spot-market renewables.
  
• By securing output from a dedicated solar complex in Spain, the PPA supports a measurable reduction in the “location-based” emissions factor tied to the electricity mix used by McDonald’s for Scope 2 reporting.
  
• Where the accounting method includes “market-based” Scope 2 reporting, the contract can be used to demonstrate that McDonald’s electricity is supplied via a qualifying renewable instrument, lowering reported Scope 2.
  
• Solar generation is largely concentrated in daylight hours; pairing the contracted supply with matching/settlement arrangements (e.g., balancing and shaping) helps ensure that the delivered renewable coverage aligns more closely with McDonald’s consumption profile.
  
• As Spain’s solar penetration rises and midday generation can depress wholesale prices, a structured PPA helps keep McDonald’s access to renewable electricity consistent despite volatile price spreads—supporting sustained emissions reductions rather than temporary purchases.
  
• For the solar complex, dedicated corporate offtake improves project bankability, which accelerates deployment; more contracted renewable supply in the grid context typically contributes to ongoing reductions in electricity-related emissions.