The corporate power purchase agreement (CPPA) marks Europe’s largest deal to physically supply power to industrial customers. The power will be offtaken by Fortia Energia, an independent power producer that services industrial consumers in Spain and Portugal. The contracts are for tenors of 5-10 years, with supply scheduled to begin between during 2023-2024, depending on the needs of the companies that are involved in the agreement.
ACCIONA Energía will cover 100% of the supply through its renewable energy facilities in Spain, as part of its strategy to increase the volume of new supply contracts and medium and long-term PPAs for corporate customers. This approach allows ACCIONA Energía to maintain a low-risk profile in its overall portfolio, as older assets reach the end of their regulatory lifespan. The strategy is supported by increased demand from industrial clients for stable and ESG-compliant energy supply, and the scarcity of uncontracted mature projects in Spain.
ACCIONA Energía’s hedging for the current financial year 2022 stands at 4.4TWh at an average price of €127/MWh. Out of the total volumes contracted for 2022, 0.8TWh is related to bilateral contracts arranged with large industrial & commercial clients, mostly on 5- and 10-year contracts. For 2023, the company’s current contracted position in Spain amounts to 2.2TWh through hedges and supply contracts, as well as volumes closed under PPAs and regulated auctions backed by new assets.
The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.
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