Spanish electric utility company Iberdrola has signed a signed a Power Purchase Agreement (PPA) with French food-products firm Danone for the long-term supply of renewable electricity from its Francisco Pizarro project.
Iberdrola’s Francisco Pizarro project is one of the largest photovoltaic plants to be constructed in Europe, with a capacity of 590MW.
Under the terms of the PPA, Danone’s 29 supply points in Spain, including production plants, natural water sources, logistics centres and offices will be supplied with renewable energy for a period of 10 years stating from April 2022.
Danone said that the PPA will strengthen its long-term renewable strategy of using 100% renewable electricity in its plants and factories in Spain.
Iberdrola España CEO Ángeles Santamaría said: “PPAs open the door to many opportunities for the development of renewable projects that are transforming the present and future of energy in our country and contributing towards its economic recovery.
“Long-term power purchase agreements provide stability to investments and have become the perfect tool for the management of the electricity supply for large consumers who are committed to clean and sustainable consumption.
“These agreements demonstrate the competitiveness of renewables and their ability to supply energy at affordable and stable prices.”
Danone to sign another contract with Iberdrola
Danone intends to complete its green energy supply with an additional annual energy contract with Iberdrola for up to 104GWh/year.
Iberdrola is planning to build the Francisco Pizarro project in the municipalities of Torrecillas de la Tiesa and Aldeacentenera, in Cáceres, Extremadura, Spain.
The company intends to bring the facility into operation in 2022, post which the project is anticipated to save 245,000 tonnes of CO2 emissions per annum.
The €300m project is expected to boost the local industry, by creating employment for more than 1,200 workers, to be involved at key stages of its delivery.
Danone Iberia general manager Paolo Tafuri said: “Our aspiration is to progress towards a new way of doing business that takes into account not just results but also the financial and social impact of our activity.
“This initiative will help us turn our ambitious environmental commitments into reality – goals that form part of our global strategy and affect our entire value chain.”
Iberdrola has previously signed a PPA with pharmaceutical company Bayer for the same 590MW solar project in Spain.
