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Iberdrola España signs wind energy purchase agreement with Renfe for 3,700 GWh until 2035
- This is a 10-year power purchase agreement that provides Renfe with long-term electricity price stability (Virtual PPA) for its high energy demand
- With this agreement, Renfe advances its commitment to the economic and social transformation of our country
Iberdrola España wind farm
Iberdrola España and Renfe have teamed up to promote the use of wind energy in passenger and freight rail transport in Spain, the most electrified mode of transport. Both companies have signed an agreement to purchase onshore wind energy through a VPPA (Virtual Power Purchase Agreement) for 370 GWh per year over a 10-year period, equivalent to the production of 190 MW from wind power.
This alliance strengthens the competitiveness of onshore wind technology within the country’s energy mix while contributing to reducing Spain’s annual CO2 emissions by over 2 million tonnes.
David Martínez, Director of Clients Spain at Iberdrola España, stated: "With this agreement with Renfe, we are helping to highlight emission-free electrification in the transport sector, which is responsible for more than a third of the energy consumption in our country. Collaborations like this are essential to support the development of a renewable electricity mix. PPAs, through their various formats, are a key tool for clients who want to secure renewable energy at a fixed price for the long term."
Marta Torralvo, Chief Financial Officer at Renfe, said: "This agreement represents a further step in Renfe’s energy management roadmap. Through this contract, renewable energy production projects are promoted, while stabilising Renfe’s energy prices, which we consider very positive for the company’s management. The high volatility of energy prices had been causing significant disruptions and uncertainties in the evolution of results, and this way, these costs can now be predicted. Agreements like the one signed with Iberdrola España help us progress in this direction. It is important to highlight that Renfe trains represent the most energy-efficient passenger and freight transport system in Spain. In fact, their carbon footprint is 20 to 30 times lower than emissions from cars or planes."
Iberdrola Group, European market leader in energy PPAs
Iberdrola Group, of which Iberdrola España is a part, has extensive experience in PPAs. The company manages energy purchase agreements in Spain, Portugal, Germany, Italy, the UK, the US, Brazil, Mexico, and Australia, covering onshore and offshore wind and photovoltaic projects. The leading electricity company in Europe by market capitalisation and the second-largest in the world has been offering innovative PPA proposals for over a decade.
Furthermore, for the second consecutive year, Iberdrola Group has confirmed its position as the leader in the European PPA market, according to the Pexapark Renewables Market Outlook 2025 report, with 1,251 MW contracted in 2024, a 38% increase compared to 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 UK for the East Anglia Three offshore wind farm. Additionally, it has signed agreements with other global clients such as Bayer, BP, Telefónica, Burger King, Salzgitter, as well as local clients.
The leading electricity company in Europe by market capitalisation 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
