The ‘largest planned’ photovoltaic plant in Europe, 590 MW Francisco Pizarro Photovoltaic Plant that Iberdrola plans to build in Extremadura region of Spain, has found a buyer. German pharmaceutical company Bayer has signed up for a 10-year power purchase agreement (PPA) to consume all the electricity it will purchase from the project.
Under the agreement signed, Iberdrola will supply renewable energy from the plant beginning 2022 when the project comes online to cover all electricity requirement of the 9 Bayer sites in Spain, including 3 factories, 5 research and development (R&D) centres and its headquarters for Iberia. Iberdrola says the agreement is the 1st between an electricity utility and a pharmaceutical company in Spain.
The 590 MW project to come up between the municipalities of Torrecillas de la Tiesa and Aldeacentenera (Cáceres), has received environmental impact approval (EIS) and is currently under planning consent. Iberdrola expects to build the project for an investment of €300 million ($356 million) (see Iberdrola Planning Europe’s ‘Largest’ Solar PV Plant).
“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,” said Iberdrola’s Global Director for large Customers, Eduardo Insunza. “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.”
Recently, Iberdrola announced it will invest €75 billion through 2025 to ensure sustainable economic growth with renewables as central to its strategy execution with 16 GW to come from solar power capacity (see Iberdrola Aims For 16 GW Solar Capacity By 2025).