Virgin Media O2 signs 10-year solar deal with egg Power

Virgin Media O2 has signed a 10-year solar power purchase agreement with egg Power for electricity from a new solar farm in Suffolk.

Under the deal, egg Power will supply renewable electricity from the site, which is expected to begin operating in 2027. The project is expected to meet about 5% of Virgin Media O2's total energy demand.

The agreement adds to the telecoms group's existing contracted supply of renewable electricity. Combined with a previous wind power deal, about 20% of its energy supply will come through long-term power purchase agreements.

The deal forms part of Virgin Media O2's target to reach net-zero carbon emissions across its entire value chain by 2040. It now uses renewable energy at sites where it controls the bill.

Energy supply

Power purchase agreements have become a common way for large businesses to secure long-term access to renewable electricity while providing developers with a fixed customer base for new generation projects. For energy-intensive companies, they can also help manage exposure to wholesale market volatility.

Virgin Media O2 operates fixed and mobile communications networks across the UK, making electricity procurement a significant operational issue. The group has around 45 million UK connections across broadband, mobile, TV and home phone services.

The Suffolk project will be developed as a new source of solar generation for the contract. egg Power, part of Liberty Global's investment portfolio, focuses on renewable energy supply arrangements for telecoms operators, digital infrastructure providers and other large electricity users.

Mark Hardman, director of finance operations at Virgin Media O2, said, "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."

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

The deal also reflects a broader shift in the communications and digital infrastructure sectors, where operators are seeking more direct access to renewable energy as power needs rise. Growth in data traffic and heavier energy use across networks and data systems have increased scrutiny of electricity sourcing and cost stability.

egg Power has funding in place for additional projects beyond the Suffolk development. The business is positioning itself as a supplier to organisations with large and predictable power demand, particularly in telecoms and related infrastructure.

Ilesh Patel, who leads the egg Power business at Liberty Global, said, "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."

"With funding in place for more projects, we're 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."

Virgin Media O2 has also pointed to recent external recognition for its environmental reporting and sustainability work. It received an A rating from CDP in the Supplier Engagement Assessment for the 2024 disclosure cycle and a Bronze Medal from EcoVadis for overall sustainability performance.

The operator is one of the UK's largest communications providers, with a fixed network covering more than half the country and a mobile network reaching 99% of the population. Liberty Global and Telefónica own the business in a 50:50 joint venture.

For egg Power, the agreement provides a reference customer in a sector with high electricity consumption and long investment cycles. For Virgin Media O2, it increases the share of power tied to specific renewable generation assets in the UK.