Ten-Year Wind PPA Between Iberdrola España and Renfe Secures Stable Pricing and Cuts Over 2 Million Tonnes of CO₂ Annually

Ten-Year Wind PPA Between Iberdrola España and Renfe Secures Stable Pricing and Cuts Over 2 Million Tonnes of CO₂ Annually

(IN BRIEF) Iberdrola España and Renfe have signed a 10-year VPPA to supply 370 GWh per year of onshore wind energy—equivalent to a 190 MW wind farm—granting Renfe long-term price stability and advancing Spain’s green transition. The pact will cut over 2 million tonnes of CO₂ emissions annually and underscores the efficiency of electrified rail, whose carbon footprint is 20 to 30 times lower than road or air transport. David Martínez of Iberdrola highlights PPAs as vital for securing fixed-rate renewables, while Renfe CFO Marta Torralvo views the deal as a milestone in stabilizing previously volatile energy costs. As part of the Iberdrola Group’s global PPA leadership—evidenced by 1,251 MW contracted in 2024—the agreement complements similar partnerships with Amazon, Microsoft, Meta, and other major industrial clients, cementing PPAs as key drivers of industrial electrification.

(PRESS RELEASE) BILBAO, 20-Jun-2025 — /EuropaWire/ — Iberdrola España and Renfe have entered into a landmark 10-year Virtual Power Purchase Agreement (VPPA) that will secure a stable, long-term electricity price for Renfe’s substantial energy needs. Under this deal, Renfe will purchase 370 GWh of onshore wind power annually—equivalent to the output of a 190 MW wind farm—ensuring budgetary certainty and reinforcing the company’s role in Spain’s economic and social transition.

This collaboration amplifies the competitiveness of wind energy within Spain’s power mix and is projected to prevent over 2 million tonnes of CO₂ emissions each year. By pairing the country’s leading electrified transport operator with one of its foremost renewable developers, the agreement spotlights emission-free rail travel, which already accounts for more than a third of national energy consumption.

“Partnering with Renfe underscores the importance of zero-emission electrification in the transport sector,” said David Martínez, Director of Clients Spain at Iberdrola España. “Joint initiatives like this accelerate the shift toward a cleaner electricity portfolio. PPAs are essential tools for clients seeking to lock in renewable energy at fixed, competitive rates over the long haul.”

Marta Torralvo, Renfe’s Chief Financial Officer, added: “This contract marks a pivotal advance in our energy management roadmap. It fosters new renewable projects while stabilizing energy costs that had previously been volatile and unpredictable. Our trains remain Spain’s most energy-efficient option for both passengers and freight—boasting a carbon footprint 20 to 30 times lower than cars or planes.”

Iberdrola Group—with Iberdrola España as a key subsidiary—is Europe’s leading PPA provider by market capitalization and the world’s second-largest. It currently manages renewable energy supply agreements across Spain, Portugal, Germany, Italy, the UK, the US, Brazil, Mexico, and Australia, spanning both wind and solar technologies. According to the Pexapark Renewables Market Outlook 2025, Iberdrola secured 1,251 MW of new PPA capacity in 2024—a 38 % increase year-on-year—solidifying its position as Europe’s top PPA facilitator.

Beyond Renfe, Iberdrola has forged long-term renewable energy partnerships with global brands such as Amazon (including wind and solar contracts for the East Anglia Three offshore wind farm), Bayer, BP, Telefónica, Burger King, Salzgitter, Microsoft, Meta, Mercedes-Benz, and Vodafone. These agreements demonstrate the critical role of PPAs in driving industrial electrification by guaranteeing clean power at fixed, stable prices over extended periods.

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Mail: comunicacioncorporativa@iberdrola.es

SOURCE: IBERDROLA