Spain's rail operator Renfe signs wind VPPA with Iberdrola

Energy company Iberdrola and Spain's national state-owned railway company Renfe have signed a long-term Virtual Power Purchase Agreement (VPPA) for 190MW/370GWh per year of onshore wind.

This deal will contribute to a reduction of annual CO2 emissions in Spain by more than 2 million tonnes, helping to demonstrate that onshore wind is a viable technology to meet the country's power demand as it progresses towards electrification.

David Martínez, director of Iberdrola Clientes España, commented in a statement: "With this agreement with Renfe, we contribute to highlighting the value of zero-emission electrification in the transport sector, which is responsible for more than a third of energy consumption in our country. Collaborations like this are essential to support the development of a renewable electricity mix. PPAs, through their different modalities, are a key tool for customers who want to secure renewable energy at a fixed price and in the long term."

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Marta Torralvo, Renfe's General Economic-Financial Director, said that the deal with Iberdrola forms part of the company's energy management strategy: "Through this contract, renewable energy production projects are promoted, while Renfe's energy price is stabilised, which we consider very positive for the company's management.

"The high volatility of energy prices was causing significant alterations and uncertainties in the evolution of results, and in this way these costs are predictable. Agreements such as the one signed with Iberdrola help us to move forward on this path."

Through agreements such as the one, Renfe is taking a further step in its strategy of ensuring stable prices, reducing exposure to the volatility of the electricity market and guaranteeing the stability of its energy costs.

To this end, the rail company also recently signed a PPA with Sonnedix for 420GWh of renewable energy per year.

Thanks to the measures implemented in recent years, Renfe has managed to reduce its carbon footprint per unit transported by 90.4% compared to 1990.