Iberdrola has signed a 10-year virtual power purchase agreement with Spanish rail operator Renfe for 3,700GWh of onshore wind electricity, marking a major step in transport-sector decarbonisation.
The deal will provide Renfe with 370GWh of renewable energy annually through to 2035 – equivalent to output from 190MW of wind capacity – and offer long-term electricity price stability amid ongoing market volatility.
Iberdrola’s director of Clientes España, David Martínez, said the contract underlined “the value of zero-emission electrification in the transport sector, which is responsible for more than a third of energy consumption in our country”.
He added: “PPAs are a key tool for customers who want to secure renewable energy at a fixed price and in the long term.”
Renfe’s general economic-financial director, Marta Torralvo, said the agreement supports the company’s energy management strategy and will help shield it from fluctuating electricity prices.
“This contract promotes renewable energy production while stabilising Renfe’s energy costs,” she said. “Our trains already represent the most energy-efficient passenger and freight system in Spain, with a carbon footprint 20 to 30 times lower than cars or planes.”
The agreement will also help cut Spain’s annual CO₂ emissions by over 2 million tonnes, according to Iberdrola.
The Spanish utility is the leading provider of corporate PPAs in Europe, securing 1,251MW in contracts in 2024 – a 38% year-on-year increase – and has active deals in nine countries, including the US, UK, and Brazil.
Clients include Amazon, Microsoft, Bayer, Meta, and Telefónica, and projects span both onshore and offshore wind, as well as solar.
Renfe said the PPA aligns with its broader decarbonisation goals and energy cost-control measures. It has already cut its carbon footprint per transported unit by more than 90% since 1990, far exceeding Spain’s 2030 climate target.