Spanish utility Iberdrola announced that it has signed a pioneering long-term power purchase agreement (PPA) whereby Iberdrola will provide green electricity to the industrial plant of the petrochemical multinational Saudi Basic Industries Corporation (SABIC ) in Cartagena, Spain, for the next 25 years.
Based on this agreement, Iberdrola will promote, construct and operate the world’s largest on site photovoltaic self-consumption system. With an investment of nearly 70 million euros, the new renewable facility, which will be developed on the site of SABIC’s industrial plant, will have an installed capacity of 100 megawatts (MW) and will consist of 263,000 solar modules.
The facility will increase the renewable capacity installed by Iberdrola in the Murcia region by almost 60% and up to 500 jobs will be generated during its construction, many of them local.
The alliance reinforces the innovative approach of Iberdrola’s strategy to undertake renewables projects in Spain through bilateral agreements that promote the supply of power at competitive and stable prices to large customers who are committed to sustainable consumption.
The commissioning of the solar plant will provide SABIC customers in markets including the automotive and construction sectors access to 100% renewable electricity produced polycarbonate solutions, in response to their demand for more sustainable products for a carbon-neutral world.
Eduardo Insunza, Global Strategic Customers Director said:
“PPAs continue to place value on the competitiveness of renewables and continue to open up opportunities for the development of innovative projects that are transforming the present and future of energy in our country. The long-term energy purchase and sales contracts provide stability to investments and have also become an optimal tool for managing the electricity supply of large consumers who are committed to clean and sustainable consumption.”
Bob Maughon, SABIC’s Executive Vice President, Sustainability, Technology and Innovation at SABIC, added:
“This pioneering agreement with Iberdrola is a significant step towards achieving our long-term sustainability and clean energy goals. Partnerships of this kind are the cornerstone of our business growth model. The photovoltaic solar power plant in Cartagena demonstrates that SABIC continues to drive the sustainability agenda in the chemical industry and that a large-scale transition is possible.
In recent years, numerous advances in renewable energy technology have made deployment to this extent possible. Our commitment to technology and innovation means that we will always be the first to adopt and are in an optimal position to carry out this transformation immediately. The new photovoltaic plant will deliver an 80kt annual reduction in indirect CO2emissions, and reinforces our support for and contribution to wider climate change initiatives such as Europe 2030 and our alignment with the UN’s Sustainable Development Goals, where we can have the greatest impact”.
Source: Press Release by Iberdrola. Photo credit: © SABIC.