Iberdrola Inks PPA with Bayer to Supply Green Energy in Italy

Spanish energy firm Iberdrola has extended its partnership with German pharmaceutical giant Bayer with the signing of a green power purchase agreement (PPA) to supply green energy in Italy for 11 years from January 2025, for a total of 33 gigawatt hours (GWh) over the period. 

Iberdrola's second photovoltaic plant, Montefiascone, in Italy will produce energy with a total installed capacity of seven megawatts (MW). Once operational, the plant will prevent the emission into the atmosphere of more than 3,200 metric tons of carbon dioxide (CO2), equivalent to the electricity demand of more than 4,000 homes, the company said in a news release.

With the inauguration of its second operational plant and the completion of the photovoltaic plants, Iberdrola said it expects to have an operational capacity of 400 MW in Italy by 2025.

In addition to the existing agreements between the two companies in Spain and Mexico, the agreement expands the international alliance between Bayer and Iberdrola, aiming to promote cleaner and more sustainable consumption.

Bayer's plant in Garbagnate Milan will use only electricity from renewable sources, according to the release.

Iberdrola has signed long-term power purchase agreements in Europe, the United Kingdom, the USA, Brazil, Mexico and Australia from onshore wind, offshore wind and photovoltaic projects.

Consultancy firm Pexapark reported that Iberdrola was the leader in the ranking of PPAs in Europe in 2023. Iberdrola has sold around 90 percent of the energy it plans to generate between 2024 and 2025, giving the company visibility in delivering sustainable energy in the long term, according to the release.

Iberdrola, with more than 180 years of history, describes itself as a global energy leader, a wind power producer, and an electricity company. The company is committed to the energy transition with a sustainable business model based on renewable energy, smart grids, large-scale energy storage and digital transformation, it said.

Bayer describes itself as a global enterprise with core competencies in the life science fields of healthcare and agriculture. It designs products and services to help tackle some of the world’s biggest challenges, and to serve the most essential human needs of health and nutrition, according to Bayer’s website.

In an earlier news report, Iberdrola acquired a 100 percent stake in its U.S. subsidiary Avangrid, upgrading its stake of 81.6 percent, for around $2.55 billion.

According to the report, the objective of the transaction was to increase exposure to the networks business in the USA at a key moment for the company, as it wants to grow in markets with strong credit ratings and in regulated businesses such as networks. The transaction is conditional on requisite shareholder approval and approval from various regulators, such as the Federal Energy Regulatory Commission and the state regulatory commissions of New York and Maine.

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