Iberdrola and PepsiCo have signed a long-term Power Purchase Agreement (PPA), under which the electricity company will supply 100% renewable electricity to all of PepsiCo’s centres in Spain and Portugal. It will come into force on 1 January 2023
Iberdrola and PepsiCo have signed a long-term Power Purchase Agreement (PPA), under which the electricity company will supply 100% renewable electricity to all of PepsiCo’s centres in Spain and Portugal. It will come into force on 1 January 2023.
Iberdrola will supply green energy to 11 PepsiCo facilities. These include the production plants in Spain and another snacks plant in Portugal. Also included in the agreement are the two large logistics centres in Burgos and Valencia, as well as sales offices in Vitoria, Pamplona, Palma de Mallorca and offices in Vitoria and Barcelona. This agreement will be effective from 2023.
The renewable energy will come from the Francisco Pizarro photovoltaic plant that Iberdrola is developing between the Extremaduran municipalities of Torrecillas de la Tiesa and Aldeacentenera, in Cáceres. The facility, which will soon come into operation, will prevent emissions of more than 150,000 tonnes of CO2 per year. With 590 MW of installed capacity, the plant will become the largest photovoltaic plant in Europe and will generate the equivalent of the energy needed to supply 334,000 homes per year.
This project is part of Iberdrola’s ambitious investment strategy in renewable energy generation projects in Spain, as well as its commitment to bilateral contracts as a way to promote the supply of energy at competitive and stable prices among large customers committed to decarbonisation.
“We are proud to be part of the development of projects like this that are transforming our country’s energy present and future and are fully aligned with our goal to reach net zero emissions by 2040,” says Marta Puyuelo, Director of Corporate Affairs and Sustainability for PepsiCo Southwest Europe.
Sergio Hernández de Deza, Iberdrola’s Director of Large Customers and Industrial Solutions, highlighted that “long-term green power purchase agreements open up many opportunities for the development of renewable projects that allow us to accelerate the energy transition to reduce dependence on fossil fuels. PPAs have become an optimal tool for managing the electricity supply of large consumer customers who share our commitment to a new, cleaner and more sustainable economic model”.
The alliance between the two companies contributes to promoting sustainable investments in Spain and Portugal through two leading companies in their sector.