Spanish multinational telecommunications company Telefónica has signed a power purchase agreement (PPA) with renewable firm ACCIONA.
As per the terms of the agreement, ACCIONA will supply 100GWh of renewable energy for ten years to Telefónica’s data processing facilities, offices and work centres in Spain.
Telefónica Spain CEO Emilio Gayo said: “The progress in our economy and society depends on firm climate action. At Telefónica, we have established a strategic commitment to mitigating climate change and we are decisively fulfilling it.
“We need a balanced energy mix, but our ultimate goal must be a transition that leads to complete decarbonisation.”
The PPA with ACCIONA is said to be the first long-term clean energy supply deal for Telefónica in the country.
Renewable energy supplied by ACCIONA to the telecom company will have 100% renewable origin accreditation and certified by Spain’s National Commission of Markets and Competition (CNMC).
By making use of clean energy, Telefónica is expected to offset 26,000 tonnes of carbon emissions, reinforcing its decarbonization strategy.
Additionally, the company will have direct access to ACCIONA’S Greenchain traceability application. This blockchain technology-based application guarantees the energy’s renewable origin in real-time.
The agreement will be effective from July this year.
ACCIONA intends to further expand its portfolio of 5,700MW renewable assets in Spain with new installations to guarantee Telefonica’s energy supply.
ACCIONA Energy CEO Rafael Mateo said: “This is a pivotal agreement in Spain, where renewable PPAs have yet to emerge as an instrument of cost efficiency and clean energy supply.
“We are very pleased that Telefónica has chosen ACCIONA as a partner to make headway with its decarbonisation commitments.”