French telecoms company Orange has signed a long-term renewable energy power purchase agreement with Spanish energy giant Iberdrola.
The deal will see Iberdrola provide energy to 9000 sales offices and buildings that Orange operates in Spain, which is the company’s second-biggest market. Some 200 GWh of electricity will be delivered from a new solar project that Iberdrola will complete this year.
With an installed capacity of 328 MW, the solar plant will be located in the municipalities of Ceclavín and Alcántara, in the province of Cáceres. It will be Iberdrola’s third PV project in the region.
Ceclavín is part of Iberdrola’s strategy to invest in clean power generation projects in Spain – where it plans to install 3000 MW by 2022 – and its commitment to using bilateral agreements with big customers who are committed to sustainable consumption as a way to promote the supply of energy at affordable, stable prices.
Ángeles Santamaría, chief executive of Iberdrola Spain, said: “PPAs open many opportunities to develop the renewable projects that are transforming the present and future energy in our country.
“These long-term energy purchase and sales contracts provide stability to the company’s investments and have also become an optimal tool for managing the electricity supply of large consumers who are committed to clean and sustainable consumption. In addition, these agreements demonstrate the competitiveness of renewables and their ability to supply energy at affordable and stable prices”.
Orange chief executive Laurent Paillassot said the agreement with Iberdrola “reinforces our strategy as a group to achieve carbon emission neutrality by 2040, while also contributing to increasing the renewable energy capacity in Spain”.