Iberdrola España S.A.U. has agreed to sell onshore wind energy to Renfe Group through a Virtual Power Purchase Agreement (VPPA). Over 10 years, Iberdrola will deliver 360 gigawatt hours (GWh) per year to Renfe.
“With this agreement with Renfe, we can highlight electrification without emissions in transport, which is responsible for more than a third of all energy consumed in our country. Partnerships such as this one are essential to support the development of a renewable electricity mix. The PPAs, through their different modalities, are a key tool for customers who want to secure renewable energy at a fixed, long-term price”, David Martínez, director for clients in Spain at Iberdrola, said in a media release.
Iberdrola said it has over a decade of PPA experience, managing agreements across Spain, Portugal, Germany, Italy, the UK, the US, Brazil, Mexico, and Australia for wind and solar projects. Iberdrola claims it is Europe’s top power utility by market value and second globally.
For the second year, Iberdrola remains the leader in the European PPA market, with 1,251 MW contracted in 2024, a 38 percent increase from 2023, the company said.
“This agreement is another step along Renfe’s energy management roadmap. This agreement promotes renewable energy production projects, while at the same time stabilizing the price of Renfe’s energy, which we consider very positive for the company’s management,” Marta Torralvo, Renfe’s Chief Financial Officer, said.
“The high volatility of energy prices was causing significant alterations and uncertainty in the evolution of results, and in this way, these costs are now predictable. Agreements such as the one signed with Iberdrola España help us to advance along this path. I should mention that Renfe trains are the passenger and freight transport system in Spain that consumes the least energy per unit transported. In fact, their carbon footprint is between 20 and 30 times lower than emissions from cars or airplanes”, Torralvo added.
Other companies with which Iberdrola signed PPAs include Amazon, Bayer, BP, Telefonica, Burger King, Salzgitter, Microsoft, Meta, Mercedes-Benz, and Vodafone.
Source: By Paul Anderson from Rigzone.com