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ACCIONA and Novartis sign two 10-year virtual PPAs for 135MW of clean power to the electrical grid
PPAs address approximately 50% of the Novartis target for 100% renewable electricity in Europe and support the Novartis commitment to become carbon neutral by 2025
- ACCIONA will build two new PV plants on the back of the PPAs: one in Badajoz (125MWp) and one in Valencia (85.7MWp)
ACCIONA has signed two ten-year virtual power purchase agreements (PPAs) for clean energy to global medicines company Novartis that will involve the development of two new photovoltaic (PV) plants in Spain.
The new PV plants will have a combined capacity of 210MWp (169MW nominal). ACCIONA will provide 135MW of clean electricity to Novartis to help the company to reduce its emissions and achieve its target of becoming carbon neutral by 2025.
Novartis aims to achieve 100% renewable energy use across all its global operations, and the PPAs signed with ACCIONA will address approximately 50% of the Novartis target for 100% renewable electricity in Europe.
For these new contracts, ACCIONA will be developing two PV plants in Spain. A new Extremadura plant will have a 125MWp (100MW nominal) capacity and will be located in Almendralejo, in the province of Badajoz. The second plant will have an 85.7MWp (69MW nominal) capacity and will straddle the municipalities of Jarafuel y Ayora in Valencia. ACCIONA will invest a total of around €120 million in the two new plants. Around 80% of the output will go towards backing the virtual PPAs with Novartis. The plant in Extremadura is expected to start operations in Q4 2022 and Valencian plant in Q1 2023.
“At Novartis, environmental sustainability is aligned with our purpose to reimagine medicine to improve and extend people’s lives,” said Montse Montaner, Chief Sustainability Officer at Novartis. “Energy efficiency and renewable energy solutions are the cornerstones of our strategy for reducing emissions. We are proud to be joined by ACCIONA and other like-minded partners on our environmental sustainability journey."
The agreement with Novartis will allow ACCIONA to expand its renewable energy operations in Spain with the addition of new clean generation assets. "Our aim is to reinforce our operations through a balanced commercialization model. Guaranteeing the sale conditions of 80% of the output of these new plants through a PPA deal with a global client such as Novartis is in line with our strategy”, says Rafael Mateo, CEO Energy at ACCIONA.
Schneider Electric, a global specialist in energy management, acted as advisor in the transaction.
The new contracts strengthen ACCIONA's position as a specialized supplier of renewable energy solutions which help companies and institutions fulfil their sustainability goals. ACCIONA’s extensive experience in developing and operating clean energy projects makes it an ideal partner for companies seeking to decarbonize their energy consumption, improve their energy efficiency and reduce costs.
ACCIONA supplies 100% renewable energy to over 500 companies and institutions worldwide, contributing to strategies focused on decarbonization and climate mitigation. ACCIONA’s clients include Apple, Bimbo, Merck, Falabella, Asics, Unilever, Google, Maersk and Robert Bosch. The company is the leading independent electricity retailer 100% renewable in Spain and Portugal.
With 10.5GW of renewable energy capacity in 16 countries, ACCIONA’s clean energy output is sufficient to power more than seven million households worldwide. ACCIONA is “the world’s greenest electricity generation company,” according to Energy Intelligence’s “New Energy Top 100 Green Utilities” ranking; the company has been at the top of the annual ranking since 2015. ACCIONA has also been recognized as the leading company in the electric utilities sector according to the analysis carried out for the development of the Dow Jones Sustainability Index (DJSI). ACCIONA is carbon neutral since 2016.