Iberdrola España, a subsidiary of the Iberdrola Group, has finalized a virtual power purchase agreement (VPPA) with Renfe, the Spanish rail company, to provide 3,700 gigawatt hours (GWh) of wind energy over the next decade. This agreement will support the operation of both passenger and freight rail services across Spain, utilizing onshore wind resources.
Under the terms of the ten-year contract, Iberdrola will supply Renfe with approximately 370 GWh of wind energy annually, translating to an output capacity of about 190 megawatts (MW). This initiative aims to significantly reduce carbon dioxide (CO₂) emissions, with expectations to cut over two million tonnes annually.
David Martínez, director of clients at Iberdrola España, emphasized that this agreement promotes emission-free electrification in the transport sector, which accounts for over one-third of Spain’s total energy consumption. He stated that partnerships like this are critical for developing a renewable energy portfolio and that power purchase agreements (PPAs) offer clients a way to secure renewable energy at a stable price for the long term.
Iberdrola has been active in signing power purchase agreements globally, having established contracts in Europe, North America, Latin America, and Oceania. The company has maintained its position as Europe’s leading entity in the PPA sector, achieving a 38% year-on-year growth, with a total of 1,251 MW contracted by 2024.
In related news, Avangrid, another subsidiary of the Iberdrola Group, has initiated commercial activities at its 202 MW DC Powell Creek solar facility in Ohio, USA. This expansion reflects Iberdrola’s commitment to advancing renewable energy projects and contributing to a sustainable energy future.
