The renewable energy sector is rapidly growing, with, luckily, no end in sight. Companies across various industries have been exploring opportunities to switch to renewable energy sources as a way to lower their carbon footprint and support the transition to cleaner energy. And in that transition, we are seeing some interesting first-ever events:
Our New Energy recently assisted our client, Sonnedix, in signing a 77MW Power Purchase Agreement (PPA) with Endesa, Spain’s largest utility company. The PPA includes five solar plants located in Valladolid, Castilla y León province of Spain, and is estimated to generate 156GWh of renewable energy annually.
The projects are currently under construction and are expected to begin operations in the first quarter of 2023. Once operational, the solar plants will produce enough electricity to power over 50,000 homes, reducing more than 30,000 tons of CO2 emissions.
This deal is significant because it marks the first time that Endesa has announced a PPA with a renewable energy asset. The agreement is also an excellent example of how utilities can significantly influence energy transition because they have a unique position in the energy sector, with their intermediate position between electricity producers and consumers. This position puts utilities in a unique position to meet the needs of renewable energy investors as well as end users.
“We are very excited to partner with a company like Endesa, who shares our commitment and drive to keep powering a bright future for all” said Axel Thiemann, CEO de Sonnedix states in a press release.
“We started off our journey in this country, over a decade ago, with a 0.9MW project. Today, our largest office is in Madrid, and our largest portfolio of operational projects is here in Spain, with over 175 projects and a total installed capacity of more than 785MW. Partnering with Endesa, one of the largest electric companies in Spain becomes a true testament to our sustainable growth trajectory, but also to our commitment to being a key player in the Spanish energy transition”.
The transition to renewable energy sources is highly necessary and urgent. With more renewable energy projects being developed, power purchase agreements like this one between Sonnedix and Endesa will continue to play a crucial role in financing and supporting these projects.