Iberdrola Espana, part of the Iberdrola Group, has entered a virtual power purchase agreement (VPPA) with Spanish rail transport company Renfe to supply 3,700 gigawatt hours (GWh) of wind energy until 2035.
The agreement aims to utilise onshore wind energy to power passenger and freight rail services in Spain.
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The ten-year contract will supply of 3,70GWh annually, equating to 190MW output from wind power.
The partnership will bolster the role of onshore wind technology within Spain’s energy landscape while simultaneously aiming to cut more than two million tonnes of CO₂ emissions each year.
Renfe CFO Marta Torralvo stated: “This agreement represents a further step in Renfe’s energy management roadmap. Through this contract, renewable energy production projects are promoted, while stabilising Renfe’s energy prices, which we consider very positive for the company’s management.
“The high volatility of energy prices has been causing significant disruptions and uncertainties in the evolution of results, and this way, these costs can now be predicted. Agreements like the one signed with Iberdrola España help us progress in this direction.”
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By GlobalDataIberdrola has signed PPAs across Europe, North America, Latin America and Oceania.
The company has maintained its status as Europe’s top player in the PPA market for two years with a 38% increase year-on-year, reaching 1,251MW contracted in 2024.
Iberdrola Espana director of clients Spain David Martínez stated: “With this agreement with Renfe, we are helping to highlight emission-free electrification in the transport sector, which is responsible for more than a third of the energy consumption in our country.
“Collaborations like this are essential to support the development of a renewable electricity mix. PPAs, through their various formats, are a key tool for clients who want to secure renewable energy at a fixed price for the long term.”
Avangrid, a subsidiary of the Iberdrola Group, recently announced the start of commercial activities at its 202MWdc Powell Creek solar facility in Putnam County in the US state of Ohio.
