Iberdrola and Orange have entered a new sustainable partnership with a long-term renewable energy power purchase agreement (PPA).
The agreement reached between the two companies will see Iberdrola provide green energy to the 9,000 sales offices and buildings that Orange operates in Spain.
The PPA delivers 200 GWh of clean energy per year, associated to a new-build solar project that Iberdrola will complete in Extremadura this year.
With an installed capacity of 328 MW, the solar plant will be located in the municipalities of Ceclavín and Alcántara, in the province of Cáceres. It will be Iberdrola’s third photovoltaic project in the region. Once operational this year, it will save the equivalent emissions of 110,000 tonnes of CO2 per year.
Ceclavín is part of Iberdrola’s strategy to invest in clean power generation projects in Spain – where it plans to install 3,000 MW by 2022 – and its commitment to using bilateral agreements with big customers who are committed to sustainable consumption as a way to promote the supply of energy at affordable, stable prices.
Ángeles Santamaría, CEO of Iberdrola Spain: “PPAs open many opportunities to develop the renewable projects that are transforming the present and future energy in our country. These long-term energy purchase and sales contracts provide stability to the company’s investments and have also become an optimal tool for managing the electricity supply of large consumers who are committed to clean and sustainable consumption. In addition, these agreements demonstrate the competitiveness of renewables and their ability to supply energy at affordable and stable prices”.
Laurent Paillassot, CEO of Orange: “This agreement with Iberdrola is in line with our commitment to caring for the planet and for sustainability, set out in the Orange Group’s strategic plan, Engage 2025, of which Spain, as its second largest market, is a fundamental part. In addition, it reinforces our strategy as a group to achieve carbon emission neutrality by 2040, while also contributing to increasing the renewable energy capacity in Spain.”
Beyond the environmental benefits, the construction of this new photovoltaic solar project will contribute to job creation and to boosting the industrial fabric of the local community. Its construction will represent an investment of some 250 million euros.
Iberdrola: leader in clean energy in Spain
The Ceclavín solar project is part of the company’s commitment to strengthening its investment in clean energy in Spain, by installing 3,000 new MW by 2022. Up to 2030, the company forecasts it will install 10,000 new MW, which will create employment for 20,000 people.
In Spain, Iberdrola is the leader wind developer – with an installed capacity of more than 5,800 MW – and renewable energy leader, with 16,000 MW installed (over 30,300 MW worldwide), making its generation fleet one of the cleanest in the energy sector. The company choice of a decarbonised economic model has entailed investments of almost €10bn euros a year around the world, having allocated almost €100bn in this area since 2001. Of these, 25 billion have been invested in Spain.
Iberdrola is a benchmark in long-term power purchase agreements (PPAs) in markets that include Spain, United States and Mexico, with wind and solar power projects totalling over 1,500 MW. In Spain, the company has been a pioneer in promoting this type of agreement with companies from different sectors (banking, telecommunications, brewery distribution and sports brands).
Source: https://www.iberdrola.com/
Image source: Courtesy of Iberdrola
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