Iberdrola strikes 11-year solar PPA with retail chain Alcampo in Spain

Spanish utility Iberdrola SA (BME:IBE) has entered into a long-term power purchase agreement (PPA) to supply solar energy to all Alcampo hypermarkets and supermarkets in Spain.

Iberdrola Espana, the utility group’s subholding in Spain, will provide Alcampo with 3,740 GWh of electricity over the course of 11 years, the power firm said. The contracted electricity will be sourced from Iberdrola’s solar photovoltaic plants, including the 350-MW Velilla facility and the Tagus I-IV solar farm complex of 200 MW located in Caceres province.

This PPA aligns with Alcampo’s commitment to decarbonisation and its efforts to achieve zero net emissions in its carbon footprint. Alcampo, part of French retail group Auchan, has already been consuming 100% renewable energy since 2018 and has set ambitious targets approved by the Science Based Targets initiative, including a 46% reduction in scope 1 and 2 emissions by 2030 and climate neutrality by 2043, the press release said.

As for Iberdrola, the utility says that it has sold around 90% of the electricity it is set to generate between 2024 and 2025 under off-take contracts.