Iberdrola to Power Gestamp Plants under 10-Year Deal

Power and gas utility Iberdrola SA has won a 10-year contract from fellow Spanish multinational Gestamp Automoción SA, a maker of metal automotive components, to supply 660,000 megawatt (MW) hours of renewable electricity to the latter's European plants.

"The PPA [power purchase agreement] covers 34 megawatts of installed capacity and will enable Gestamp's plants to be supplied with 100 percent renewable energy (80 percent wind and the remaining 20 percent solar), backed by certificates of origin", said a joint statement Tuesday.

"This agreement enables Gestamp to secure a long-term supply of renewable energy at a fixed and competitive price, in line with its strategy aimed at promoting stability and future visibility of its energy costs. It also helps the company take a further step in its contribution to the decarbonization of the automotive industry's supply chain".

In Spain this year Iberdrola secured 10-year agreements covering 50 MW of installed renewable generation capacity. The Spanish contracts total one million MW hours, the statement said.

Iberdrola supplied 96,474 gigawatt hours (GWh) of power under its Renewable Generation and Customers business last year, according to its annual report. Spain accounted for 79,295 GWh. The United Kingdom comprised 9,015 GWh. Iberdrola Energía Internacional, which covers markets outside of Iberdrola's main areas of operation, contributed 8,164 GWh.

The report said Iberdrola had over 250 terawatt hours (TWh) contracted with industrial customers through 2030.

"The Data Center business is one of the fastest-growing sectors in terms of electricity demand", the report said. "Iberdrola already has contracts for 11,000 GWh/year with major operators in the United States, Spain, Portugal, Germany and the United Kingdom, supporting their expansion through highly efficient, renewable and manageable solutions".

"The generation and customers business broadly diversifies routes to market, combining regulated contracts (CfDs and others), corporate PPAs and sales to residential customers", the report said. "This has resulted in 90 percent of revenues being locked in for 2026, and 75 percent for 2028, which significantly reduces exposure to price volatility and ensures stable margins.

"The Group’s dispatchable generation for 2028 is projected at 120-125 TWh, supported by the commissioning of new projects and the continued maturation of the renewable pipeline".

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