Well, Iberdrola España just dropped a bombshell! They recently signed their own joint VPPA along with Spanish railways Renfe, to provide the company 3,700 GWh of wind energy over the next ten years. This contract bolsters passenger and freight rail services throughout Spain. It shows Iberdrola’s long-standing commitment to high-quality sustainable energy solutions.
The VPPA will produce a remarkable annual output of 3,700 GWh. This figure represents 190 megawatts (MW) of new renewable energy, all from onshore wind. Together this collaboration will prevent over 2 million metric tons of carbon emissions. Iberdrola’s goal is to reduce more than two million tonnes of CO₂ annually through this project.
Commitment to Renewable Energy
E iberdrola Espana has cemented its place as a center of influence within the Iberdrola Group. Indeed, for two years in a row it has been at the top of the European power purchase agreement market. It’s hard to believe that just a year ago, the same company made headlines for posting a stunning 38% YoY decline in contracts, then boasting only 1,251 MW contracted for 2024.
David Martínez, director de clientes España for Iberdrola Espana, said the agreement was powerful. Most importantly, he highlighted what a game changer it will be for the transport sector.
“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.” – David Martínez
By investing in renewable energy projects like this VPPA, Iberdrola Espana is contributing to a sustainable future and reinforcing its leadership role in promoting clean energy across various sectors.
Strengthening Spain’s Energy Landscape
The cutting down of emissions dovetails with the alliance’s broader goals. It seeks to enhance the role of onshore wind technology in Spain’s energy mix. The Spanish transport sector has an electricity-axial bias. This deal is huge for another reason — it aligns with a national movement to embrace greener, more sustainable energy solutions.
Marta Torralvo, Director of Sustainability and Environment at Renfe, highlighted the strategic importance of this agreement for stabilizing the cost of energy in a context of volatile market conditions.
“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.” – Marta Torralvo
This collaboration allows Renfe to advance their operational efficiency. It is an important part of the overall effort to get a renewable electricity mix.
Future Implications
As Iberdrola Espana goes further in creating partnerships that put sustainability first, the impact reaches far beyond energy supply. Our VPPA with Renfe is a lesson for other industries seeking to lead through the adoption of renewable energy technologies. In doing so, it illuminates how targeted partnerships can help the transition to a greener economy be not only more equitable, but a stable economic force, too.
