Foresight Group is to supply electricity to European steel giant ArcelorMittal under a 10-year power purchase agreement.
Electricity will be delivered from two solar farms in Spain that will become operational in the second quarter of this year.
The deal is the first corporate 10-year fixed price PPA to be agreed in Spain, Foresight said.
The projects are expected to generate about 8.6 gigawatt-hours a year of electricity.
Foresight director Carlos Rey said: “We are delighted to have agreed terms for Spain’s first corporate fixed rate 10-year PPA with ArcelorMittal.
“Iberian grid-parity forms a key part of our long-term strategy as we are looking to consolidate further our leadership as a worldwide solar operator.
“The execution of our third 10-year PPA in the region is further proof of a robust future for the Iberian unsubsidised market.”
ArcelorMittal head of long-term contracts natural gas, power and power plant projects Edouard Oberthur said: “As a large consumer of electricity in Europe, ArcelorMittal is very proud to sign these PPAs in order to supply our Spanish steel mills with a competitive and CO2 free electricity supply.”
Foresight was advised by law firm Watson, Farley & Williams and by Our New Energy on the structuring, origination and negotiation.