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It has signed long-term power purchase agreements with more than 50 companies, including Big Tech: Google, Amazon, Apple, Facebook and Microsoft

2021-11-05 00:00:00.0

Iberdrola reaffirms its leadership in PPAs with more than 4,000 MW in renewable energy tied to long-term contracts.

Ignacio Galán, at the Andévalo photovoltaic plant (Huelva, Spain).

The consumption associated with these PPAs is around 8,600 GWh/year, equivalent to that used by approximately 2 million households

The company reaffirms its strategy of developing renewable energy projects linked to bilateral contracts that promote energy supply at competitive and stable prices with large customers committed to sustainable consumption.

Iberdrola continues to strengthen its leadership position in renewable energy tied to long-term bilateral contracts. The company now has more than 4,000 megawatts (MW) of renewable energy tied to contracts with large companies in the United States, Spain, Mexico, Brazil, the United Kingdom and Australia for the sale of long-term power purchase agreements (PPAs).

In recent years, the energy company has pushed ahead with these contracts and signed agreements with more than 50 multinational companies, including the 5 major big tech companies: Google, Amazon, Apple, Facebook and Microsoft.

This type of agreement creates many opportunities for the development of renewable energy projects, transforming the present and future of energy in our country and contributing to the economic recovery. Long-term energy purchase and sales contracts provide stability to investments and have also become an optimal tool for managing the electricity supply of large consumers who are committed to clean and sustainable consumption. The PPAs demonstrate the competitiveness of renewable energy and their ability to supply energy at affordable and stable prices.

Supporting decarbonisation in Spain

The group led by Ignacio Galán started with the long-term renewable energy contract model in the United States, where it is the third largest renewable energy operator in the US through its subsidiary AVANGRID. The group began developing this type of contract more than a decade ago and today has signed PPAs with more than 10 US companies on the other side of the Atlantic.

In Spain, the company has pioneered this type of contract with companies from different sectors: For example, in the banking, telecommunications, brewing, distribution, sports brands and pharmaceuticals industries. One of the most recent agreements has been that signed with Danone España, which joined forces with Iberdrola to develop Europe’s largest photovoltaic plant. The agreement guarantees long-term green electricity supplies for Danone production plants and mineral water abstraction wells in Spain, which are in Asturias, Barcelona, Girona, Guadalajara, Granada, Madrid and Valencia; as well as its logistics centres and offices. Danone’s suppliers, Graham Packaging and Salvesen Logística, are also taking part in this alliance.

More information: What is a PPA, and what are the main benefits?

Leading the fight against climate change

Iberdrola continues to make progress with its sustainability strategy, based on the electrification of the economy and oriented towards the fight against climate change and the creation of wealth and employment in the communities in which it operates.

The company, which through ScottishPower is the main partner of COP26 to be held in Glasgow from 31 October to 12 November 2021, is a leader in green and sustainable finance with €35.8 billion and the first corporate issuer of green bonds in the world. Its CO₂ emissions as of September have been reduced to 53 g/kWh and it maintains its goal of becoming an emission-neutral company by 2030 in Europe.

In the last two decades, the company has invested 120 billion euros in renewable energy, smart grids and energy storage. An investment plan to 2030 worth 150 billion euros will triple its renewable capacity to almost 100,000 MW.

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About Iberdrola

Iberdrola is a leading global energy supplier -the third-largest by market capitalisation in the world and the leader in renewables- championing the energy transition towards a low-emissions economy. The group supplies energy to around 100 million people in dozens of countries and has renewable, grid and retail activities in Europe (Spain, the UK, Portugal, France, Germany, Italy and Greece), the US, Brazil, Mexico and Australia, while counting markets including Japan, Ireland, Sweden and Poland among its growth platforms.

With a workforce of more than 37,000 and assets of over €122.5 billion, it recorded turnover in excess of €33 billion and net profit slightly exceeding €3.6 billion in 2020. The company contributes to the maintenance of 400,000 jobs in its supply chain, with an annual procurement budget of €14 billion. A leader in the fight against climate change, Iberdrola has committed more than €120bn over the last two decades to building a sustainable energy model based on sound environmental, social and governance (ESG) principles.