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Iberdrola and Lactalis are joining forces in their respective business and sustainability strategies with the signing of a long-term on site renewable energy purchase agreement (PPA, Power Purchase Agreement) , whereby the energy company will supply green electricity for a period of 15 years, but extendable to 25 years, to the multinational dairy food company at its largest cheese production plant in Spain, located in Villarrobledo (Albacete) with brands such as El Ventero, Gran Capitán and Don Bernardo.

The photovoltaic installation will consist of 5,796 panels, will have an installed capacity of 2,300 kWp and will occupy a site covering approximately 40,000 m². Operational in March 2022, it will prevent the emission of 1,700 tCO₂/year into the atmosphere - the equivalent of taking 594 new cars off the road each year or preventing the annual CO₂ emissions of 138 households- and up to 25,000 tCO₂ during the first 15 years of the contract.

The self-consumption facility at the Villarrobledo factory will be built and operated by Iberdrola as part of its smart solutions developments designed specifically for customers. The agreement reinforces Iberdrola's renewable strategy through bilateral contracts, which promote the supply of clean energy at competitive and stable prices for large companies committed to sustainable consumption. In this case, as it is an on site PPA, the infrastructure is also maximised by making the most of the factory's surface area.

Iberdrola is a benchmark in the field of PPAs worldwide in all their forms, and it manages long-term power purchase agreements in markets including Spain, the United Kingdom, the United States, Mexico and Australia, from both wind and photovoltaic projects, with an installed capacity of more than 6,500 MW. In Spain, the company has pioneered this formula with companies in sectors such as banking, telecommunications, the brewing and food industry, distribution, the chemical industry and sports brands.

With this agreement, the Lactalis Group is progressing in its commitment to reduce the impact of its activity on the environment and means that, from the first quarter of 2022, 75 % of the electricity consumed at the cheese plant in Albacete will come from renewable sources (solar and wind).

Environmental commitment is one of the main pillars of Grupo Lactalis, which continues to make progress in implementing environmentally-friendly initiatives that contribute to the circular economy. The company has also made significant progress in reducing water consumption, waste management and packaging sustainability. Currently, all Lactalis factories in Spain work with clean fuel and at the packaging level, the Group continues to work on its eco-design, promoting the use of recycled materials that are 100 % recyclable.

Renewables for a green recovery

Iberdrola has been leading the energy transition for two decades, acting as a key driving force in the transformation of the industrial fabric and the green recovery of the economy and employment. To this end, it has launched a historic investment plan of 150 billion euros over the next decade, 75 billion euros by 2025, to triple renewable capacity and double network assets and take advantage of the opportunities of the energy revolution facing the world's leading economies.

In Spain, investments to 2025 amount to 14.3 billion euros and it is the leader in the renewable sector with an installed capacity of 17,500 MW, which this investment plan will increase to 25,000 MW.

After investments of 120 billion euros in the last twenty years, Iberdrola is a leader in renewable energy with 35,000 MW installed worldwide; a volume that makes its generation park one of the cleanest in the energy sector.

With emissions of 28 gCO₂/kWh, which is already two-thirds lower than the European average, Iberdrola's strategy of investing in clean energy and networks will lead Iberdrola to be a "carbon neutral" company in Europe by 2030.