Iberdrola and Bayer in Spain have signed the first long-term power purchase agreement (PPA) between an electricity utility and a pharmaceutical company in Spain that generates clean energy sources.
Iberdrola will supply 100 percent renewable electricity to cover the entire supply of electricity at nine Bayer sites in Spain, including three factories, five research and development (R&D) centers and the company’s headquarters in Iberia.
This initiative will be effective in 100 percent of these centers from 2022 and over a ten-year period, with the electricity generated by the Francisco Pizarro photovoltaic plant – the largest planned photovoltaic plant in Europe – which Iberdrola will build in Extremadura and which has already been approved for environmental impacts (EIS).
Until that time, the deal contains a ‘bridge contract’ in which Bayer can now use all the energy it wants without emissions, with a guarantee of origin (GO) label.
With the deal, Iberdrola and Bayer continue to contribute together to the transition to a green economy, following the agreement between the two companies in Mexico that the pharmaceutical company will purchase green energy generated by the Santiago onshore wind farm (105 MW), located in the state of Guanajuato.
“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.”Eduardo Insunza, Iberdrola’s global director for large customers.
“Measures such as these help us to further Bayer’s commitment to sustainability by taking concrete steps to reduce our environmental impact. Working with experts such as Iberdrola makes this commitment effective almost immediately, while we contribute to develop the infrastructure Europe needs to build a greener and more environmentally friendly future.”Laura Dieguez, director of communications, corporate public affairs and sustainability.