Iberdrola has signed a renewables power purchase agreement with pharmaceuticals giant Bayer in Spain.
The electricity generated by the 590MW Francisco Pizarro photovoltaic plant will supply Bayer under the PPA.
The PPA is for 100% renewable electricity supply for nine Bayer sites in Spain, including three factories, five research and development (R&D) centres and the company’s headquarters for Iberia.
The PPA will be effective in 100% of these centres from 2022 and for a 10-year period.
Until it is operational the agreement includes a “bridge contract” under which Bayer will now consume all the electricity it needs without emissions, with guarantee of origin (GO) labels.
The Francisco Pizarro project, the largest PV project in Europe, is under planning consent.
It is located between the Extremaduran municipalities of Torrecillas de la Tiesa and Aldeacentenera.
In Mexico Bayer has a PPA with Iberdrola for clean energy generated by the 105MW Santiago onshore wind farm, located in the state of Guanajuato.
Iberdrola global director for large customers Eduardo Insunza said: “PPAs open up many opportunities for the development of renewable projects which are transforming the present and future of energy in our country while contributing to the transition to a green economy.
“These long-term energy purchase contracts bring stability to the company’s investments. They have also become an optimal tool for managing the electricity needs of large consumers, committed to clean and sustainable supply.
“PPAs demonstrate the competitiveness of renewables and their ability to supply energy at affordable and stable prices in the long term.”