Iberdrola and ScottishPower announce two major clean energy agreements
Published by Abi Larkin,
Editorial Assistant
Energy Global,
Ignacio Galán, Iberdrola’s Executive Chairman, and Chairman of ScottishPower, have announced the company’s largest ever UK clean energy contract has been formalised and a new global power purchase agreement (PPA) to develop large scale renewable projects has been agreed with Amazon.
Delivering the keynote speech at the Aurora Spring Forum in Oxford, the UK, on 29 March, Mr Galán will stress the need for both industry and governments to fully commit to the energy transition in the coming decade, in order to overcome the structural issues caused by the reliance on fossil fuels.
Highlighting the two major agreements that will see large scale renewable energy projects built in the UK, Europe, the US, and Asia-Pacific, Mr Galán will say:
“In recent months, commodity price volatility has shown the benefits of long-term contracts. PPAs allow more customers to benefit from stable prices, and producers to have lower cost of capital. Our new global alliance with Amazon will involve PPAs in Europe, the US, and Asia-Pacific. The first step is a long-term contract to supply Amazon more than 1000 GWh of green energy from our offshore wind farms at the German Baltic Sea.
“We need to see more deals like this. Measures such as standardisation, the creation of a secondary market for PPAs, or tax incentives, can accelerate the adoption of long-term contracts by large customers and SMEs.
“We are also aware of the consequences of the current inflationary situation for some equipment manufacturers. Fortunately, ongoing dialogue with suppliers based on strong long-term relations can help alleviate this situation. Today, I can also announce we have confirmed our major contract with Siemens Gamesa for our 1400 MW East Anglia Three offshore wind project, which was awarded a CFD last year.”
For more news and technical articles from the global renewable industry, read the latest issue of Energy Global magazine.
Energy Global's Spring 2023 issue
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Read the article online at: https://www.energyglobal.com/other-renewables/29032023/iberdrola-and-scottishpower-announce-two-major-clean-energy-agreements/
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