Sainsbury's already generates enough renewable electricity to power well over half of its Scottish stores, having purchased all of the electricity from two installations (Muirhall and Lochhead), situated just outside Glasgow. It is now on the brink of securing another site that will ensure it generates enough to power all 47 of its stores, as well as its depots in Scotland.

By agreeing to buy all of the energy from a wind energy site before it is built, Sainsbury's provides renewable energy companies with the guaranteed income they require in order to secure start-up funding. As such, Sainsbury's is a leader in the renewable energy industry.

Rural Affairs Secretary Richard Lochhead welcomed the announcement. He said: "It's great to see a company like Sainsbury's making a public commitment to Scotland's renewables revolution. The Scottish Government aims to generate 100 per cent of Scotland's own electricity demand from a mix of renewable sources by 2020. By then we intend to be generating twice as much electricity as Scotland needs - just over half of it from renewables, and just under half from other conventional sources."

Sainsbury's has pioneered an innovative type of energy deal which has made this announcement possible. Known as a Power Purchase Agreement (PPA), the energy is purchased in advance at an agreed cost providing guaranteed income for the renewable energy company, and protection from the volatility of the energy market for Sainsbury's.The Lochhead windfarm was commissioned two years ago, while the Muirhall wind farm was commissioned this April. Sainsbury's is planning to announce the addition of a third windfarm next year.

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