Ignacio Galán, Iberdrola’s Executive Chairman and Chairman of ScottishPower, will announce today that the company’s largest ever UK clean energy contract has been formalised, and a new global power purchase agreement (PPA) to develop large-scale renewables projects has been agreed with Amazon.
Delivering the keynote speech at the Aurora Spring Forum in Oxford later today, Mr Galán will stress the need for both industry and governments to fully commit to the energy transition in the coming decade to overcome the structural issues caused by the reliance on fossil fuels.
Highlighting the two major agreements that will see large-scale renewable energy projects built in the UK, Europe, the US, and the Asia Pacific, Mr Galán will say:
“In recent months, commodity price volatility has shown the benefits of long-term contracts. PPAs allow more customers to benefit from stable prices and producers to have lower cost of capital. Our new global alliance with Amazon will involve PPAs in Europe, the US and Asia-Pacific. The first step is a long-term contract to supply Amazon with more than 1.000 GWh of green energy from our offshore wind farms in the German Baltic Sea.
“We need to see more deals like this. Measures such as standardisation, the creation of a secondary market for PPAs, or tax incentives can accelerate the adoption of long-term contracts by large customers and SMEs.
“We are also aware of the consequences of the current inflationary situation for some equipment manufacturers. Fortunately, ongoing dialogue with suppliers based on strong long-term relations can help alleviate this situation. Today, I can also announce we have confirmed our major contract with Siemens Gamesa for our 1,400 MW East Anglia Three offshore wind project, which was awarded a CFD last year.”
Source: https://www.iberdrola.com/
Image source: Courtesy of Iberdrola
Read more Renewable energy news here
