Iberdrola to Supply Green Energy for Orange

February 14, 2020 | Renewables | Energy Facts Staff Writer | 4min

Iberdrola and Orange have decided to ally themselves in terms of sustainability, with a long-term power purchase agreement (PPA), which will allow the telecommunications operator to continue with its commitment to consuming emissions-free energy in this country, which it already demonstrates as it uses energy from 100% renewable sources at all its locations.

The terms of the agreement reached between the two companies establish that Iberdrola will provide green energy to the 9,000 supply points in Orange’s own network in Spain, for a period of 12 years. The contract is now in place and half of the consumption – 200 GWh/year – to be supplied under the PPA formula will be associated with a new-build renewable asset, the Ceclavín photovoltaic project, which Iberdrola will develop in Extremadura during this year.

The plant will have an installed capacity of 328 MW and be located in the municipalities of Ceclavín and Alcántara, in the province of Cáceres, and will be Iberdrola’s third photovoltaic project in the region. It will become operational in 2020 and avoid the emission of 110,000 tonnes of CO2 a year.

Ceclavín forms 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.

“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”, explains Iberdrola España CEO Ángeles Santamaría.

“This agreement with Iberdrola is in line with our commitment to caring for the planet and for sustainability that are 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”, says Laurent Paillassot, CEO of Orange.

Together with its environmental impact, 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.