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Iberdrola España signs a wind power purchase agreement with Renfe for 3,700 GWh until 2035
- This is a 10-year power purchase agreement that offers Renfe long-term electricity price stability (Virtual PPA) for its high energy demand
- With this agreement, Renfe strengthens its commitment to the economic and social transformation of our country, Spain
Iberdrola España wind farm
Iberdrola España and Renfe join forces to promote the use of wind power in passenger and freight rail transport in Spain, the most electrified mode of transport. The two companies have signed an agreement to purchase onshore wind energy through a VPPA (Virtual Power Purchase Agreement) for 370 GWh a year for a period of 10 years, equivalent to the output generated by 190 MW of wind power.
This partnership strengthens the competitiveness of onshore wind technology within the country's energy mix, while contributing to the reduction of annual CO2 emissions in Spain by more than 2 million tonnes.
David Martínez, Director Clientes España, Iberdrola España, said: ‘With this agreement with Renfe we can highlight electrification without emissions in transport, which is responsible for more than a third of all energy consumed in our country. Partnerships such as this one are essential to support the development of a renewable electricity mix. The PPAs, through their different modalities, are a key tool for customers who want to secure renewable energy at a fixed, long-term price’.
Marta Torralvo, Renfe's Chief Financial Officer, said: ‘This agreement is another step along Renfe's energy management roadmap. This agreement promotes renewable energy production projects, while at the same time stabilising the price of Renfe's energy, which we consider very positive for the company's management. The high volatility of energy prices was causing significant alterations and uncertainty in the evolution of results, and in this way these costs are now predictable. Agreements such as the one signed with Iberdrola España help us to advance along this path. I should mention that Renfe trains are the passenger and freight transport system in Spain that consumes the least energy per unit transported. In fact, their carbon footprint is between 20 and 30 times lower than emissions from cars or aeroplanes’.
Iberdrola Group, leader in the European PPA market
The Iberdrola Group, of which Iberdrola España is a part, has extensive experience in PPAs. The company manages power purchase agreements in Spain, Portugal, Germany, Italy, the United Kingdom, the United States, Brazil, Mexico and Australia for onshore and offshore wind and photovoltaic projects. Europe's leading power utility by market value and the world's second largest in the world has been offering innovative PPA propositions for more than a decade.
For the second consecutive year, Iberdrola Group has been confirmed as the leader in the European PPA market, according to the Pexapark Renewables Market Outlook 2025 report, with 1,251 MW contracted in 2024, 38% more than in 2023.
Iberdrola Group has announced agreements in Europe with major companies such as Amazon, with which it has signed wind and photovoltaic PPAs in Spain, Portugal and the United Kingdom for the East Anglia Three offshore wind farm. It has also signed agreements with other global customers such as Bayer, BP, Telefónica, Burger King, Salzgitter, as well as local customers.
Europe's leading electricity company in terms of stock market value has also strengthened global partnerships with major companies such as Microsoft, Meta, Salzgitter, Mercedes-Benz and Vodafone, confirming the PPA as a key tool for industrial electrification, as it guarantees renewable energy at a fixed and stable price over the long term.
Grupo Iberdrola
