Iberdrola and Danone have signed a 10-year power purchase agreement (PPA) for the output from a 590MW solar photovoltaic plant in Spain.
The 100% renewable electricity supplied to Danone will come from the Francisco Pizarro project, the largest PV plant planned for Europe, which Iberdrola is building in the municipalities of Torrecillas de la Tiesa and Aldeacentenera, in Caceres, Extremadura.
The plant will be operational in 2022.
The plant will produce renewable electricity to supply Danone’s factories in Spain, located in Asturias, Barcelona, Gerona, Guadalajara, Granada, Madrid and Valencia; as well as its logistics centres and offices.
Danone Espana’s suppliers, Graham Packaging and Salvesen Logistica, have also joined the alliance.
The agreement starts from April 2022, addressing an annual output of 73 gigawatt-hours.
Danone will complete its supply with another annual green energy contract with Iberdrola up to 104GWh/year.
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.”