24 Apr 2020
Posted in Coronavirus
EDP Renewables to increase presence in Spain after securing PPA amid COVID-19, says GlobalData
EDP Renewables (EDPR) inked a power purchase agreement (PPA) with Royal DSM to supply 59 megawatt (MW) of renewable power in Spain, which is a key market for EDPR. The PPA contract will help the company increase its portfolio in the country and seek more corporate agreements in future, says GlobalData, a leading data and analytics company.
EDPR will supply electricity from two solar plants – Acampo Arpal solar plant in Zaragoza and Señora de la Oliva solar project in Cádiz – having a combined capacity of 43 MW and remaining 16 MW from Herrerias wind farm in Zaragoza. These three facilities will become operational between 2022 and 2023.
Somik Das, Power Analyst at GlobalData, comments: “The PPA is part of EDPR’s strategy to achieve its 7 gigawatt (GW) target of new build solar and wind capacity during 2019 to 2022. Of the 7 GW target, Europe will constitute to 1.4 GW capacity. The signing of this new PPA amidst the COVID-19 pandemic reiterates EDPRs success in securing long-term contracts under stable regulatory frameworks and emphasizes its growth strategy based on development of competitive and innovative renewable projects with long-term visibility.
“In addition, the contract takes DSM closer to achieving its commitment to source 75% of its electricity needs from renewable energy sources by 2030. To reduce its carbon emissions, the company should continue to sign new contracts and form new alliances in future.”