Spain’s growing corporate renewables market

2020 was an incredible year for corporate renewable electricity sourcing in Europe. Although the corporate power purchase agreement (PPA) market in Europe only started in earnest in 2014, it has already grown to a cumulative capacity of over 12 GW.

Spain is now one of the leading European countries in corporate PPAs signed. Of the nearly 4 GW of PPAs signed across 12 countries last year, Spain was responsible for more than 1.3 GW, around one-third of the total announced. In 2020, solar PPA announcements were also concentrated in Spain with more than 1 GW signed, followed by Germany and France.

In 2020, Swiss pharmaceuticals company Novartis signed five virtual PPAs that together will add more than 275 MW of wind and solar capacity to Spain’s output. These contracts will enable Novartis to achieve their goal of running on 100% electricity. Learn about the technicalities of virtual and cross-border PPAs.

Government financial schemes to support PPAs

However, Spain is not resting on its laurels when it comes to renewable energy. In fact, the Spanish government has recently approved a state financial support scheme for energy-intensive companies. The scheme includes measures, such as credit risk guarantees, that should clear the path for these companies to sign renewable PPAs.

Energy-intensive industries are responsible for more than half the energy consumption of EU industry. Efforts to encourage energy-intensive industries to transition to renewable electricity should be applauded and we encourage more governments to make it easier for energy-intensive companies to make the switch.

Renewable electricity in Spain in 2021 and beyond

Corporate PPAs are set to continue strongly in Spain in 2021, starting with an announcement in January that Danone signed a PPA with Iberdrola to supply 73 GWh of solar power per year to the food-product company’s Spanish operations. The contract, which will last for ten years, will support Iberdrola’s solar project Francisco Pizarro in Extremadura, Spain. Once online in 2022, it will be the largest operating solar farm in Europe.

RE-Source looks forward to more positive news from Spain’s corporate renewable electricity market during 2021 and from all European markets – whether they are world-leaders in corporate renewable energy sourcing or taking their first steps.

As part of RE-Source’s efforts to remove barriers to corporate sourcing throughout Europe, we engage with a network of local partners, including organisations in Poland, the UK and Scandinavia. Find out more about their work through our Renewable Energy Buyers Toolkit.

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