Iberdrola and Danone Espana have penned an agreement initiating the development of 600MW of solar energy

Iberdrola and Danone Espana have penned an agreement initiating the development of 600MW of solar energy

Iberdrola and Danone signed an agreement that will put them into a power purchase agreement (PPA), taking ten years and generating about 600MW of solar energy from Spain’s photovoltaic power plant. This energy will meet the needs of the residents of the country both in household activities and business operations. The renewable electricity distributed to Danone will be from the Francisco Pizarro project that Iberdrola establishes in the municipalities of Torrecillas de la Tiesa and Aldeacentenera. The plant will be among the largest photovoltaic power producers in Europe. The two companies stated that the plant would begin the provision of renewable electricity next year since this is the estimated period when the development would be complete.

The plant will generate renewable electricity to go into the Danone factories in Spain, at Valencia, Guadalajara, Barcelona, Asturias, Granada, Madrid, and Gerona. Other areas that will receive this power immediately after its production include the logistics divisions and offices. Danone will become a pioneer of renewable electricity in the region, motivating the neighboring regions to come and benchmark with the program before proceeding to implement similar projects in their areas. Other partners who have joined this quest include Graham Packaging, Danone Espana’s suppliers, and Salvesen Logistica. The deal will begin meeting its objective of producing 73 gigawatt-hours next year in April. The supply period will witness Danone and Iberdrola provide green energy worth 104GWh annually.

The €300 million projects will ensure the employment of not less than 1200 people in different positions ranging from management to casual laborers on the site. The chief executive of Iberdrola Espana, Angeles Santamaria, stated that power purchase agreements (PPAs) open avenues for establishing renewable energy projects that are redeveloping the current and future energy industry in the country and facilitating the recuperation of the economy from the devastating implications of the coronavirus pandemic.

The executive added that long-term PPAs establish stamina for investment and act as the management tool for the electricity supplied to large consumers pursuing long-term commitment to clean and sustainable power consumption. The power purchase agreements prove the competitiveness of renewable energy and its potential to serve consumers’ energy demands at cheap prices than what the national grids have been offering from fossil-fuel power plants. Finally, Spain’s citizens living close to the utility can enjoy employment opportunities and clean energy that does not have environmental implications when consumed. It is exciting to watch how the project will shape up after becoming operational.