Iberdrola, a global electric utility company, and PepsiCo, an American food and beverage corporation, inked a long-term power purchase agreement (PPA) under which Iberdrola will supply 590 MW of solar power to Pepsico’s facilities in Spain and Portugal. The agreement aims to develop a long-term operational structure that will aid both companies in their transition to renewable energy.
Reportedly, Iberdrola will supply 100 per cent renewable energy to 11 PepsiCo facilities beginning January 1, 2023, including production units in Spain (beverages in Alava, snacks in Burgos, and gazpacho Alvalle in Murcia) and another snacks plant in Carregado, Portugal. The power supply to PepsiCo’s two logistical centres in Burgos and Valencia, Spain, as well as sales offices in Vitoria, Pamplona, Palma de Mallorca, and Barcelona, is also included in the PPA.
The clean energy supplied to PepsiCo will originate from Iberdrola’s Francisco Pizarro photovoltaic facility, which is currently being built between the Extremaduran municipalities of Torrecillas de la Tiesa and Aldeacentenera in the western Spanish city of Cáceres. The 590 MW project, which is still under construction, is estimated to save 150,000 tonnes of carbon dioxide emissions every year and generate enough energy to power 334,000 houses for a year. The project would also support the company’s commitment to bilateral contracts by promoting cost-effective and stable energy supply among large customers committed to decarbonization.