Danone Espana sign 600MW solar offtake
A 10-year Power Purchase Agreement (PPA) for output from a 590MW solar photovoltaic plant in Spain has been signed by Iberdrola and Danone.
The 100% renewable electricity supplied to Danone will come from the Francisco Pizarro project, the largest planned photovoltaic power plant in Europe to be built by Iberdrola in the municipalities of Torrecillas de la Tiesa and Aldeacentenera, in Caceres, Extremadura.
In 2022, the plant will be operational.
In order to supply Danone's factories in Spain, located in Asturias, Barcelona, Gerona, Guadalajara, Granada, Madrid and Valencia, as well as its logistics centers and offices, the plant will produce renewable electricity.
The alliance was also joined by Danone Espana's suppliers, Graham Packaging and Salvesen Logistica.
The agreement starts with an annual output of 73 gigawatt-hours from April 2022.
Danone will complete its supply of up to 104 GWh/year with another annual green energy contract with Iberdrola.
The €300m project will contribute to the employment of more than 1200 workers.
Iberdola Espana CEO Angeles Santamaria 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.”