Telefónica has signed, with ACCIONA, its first long-term renewable energy PPA in Spain, reinforcing its decarbonization strategy
Telefónica and ACCIONA have reached an agreement for the annual supply of 100GWh of renewable energy over the next decade. ACCIONA will provide clean energy to the telecommunications group’s data processing facilities, offices and work centers in Spain. This Power Purchase Agreement (PPA) is Telefónica's first long-term clean energy supply deal in the country. The group has selected ACCIONA, Spain’s leading 100% renewable energy retailer, as its energy supplier for the next yen years. ACCIONA already has a number of corporate and institutional customers worldwide, as well as a portfolio of renewable assets amounting to 10,300MW.
The electricity supplied by ACCIONA will come with 100% renewable origin accreditation, certified by Spain’ National Commission of Markets and Competition (CNMC). By using clean energy, Telefónica will prevent the emission of 26,000 tons of CO2, equivalent to the carbon captured by 430,000 trees, the main cause of global warming and climate change, thus reinforcing its decarbonization strategy.
Telefónica will also be given direct access to ACCIONA’S GREENCHAIN® traceability application, a platform based on blockchain technology, which guarantees the renewable origin of the energy in real time.
The contract will come into force in July 2020, supported by ACCIONA's portfolio of 5,700MW renewable assets in Spain. This portfolio will be expanded with the construction of new installations for the purpose of guaranteeing Telefonica’s energy supply. This new deal will lead ACCIONA to develop new renewable assets, as well as to strengthen the energy marketing price structure in Spain, reducing exposure to market volatility.
This is Telefónica's first long-term PPA in Spain. It represents a decisive step forward in the country’s energy transition.
"The progress in our economy and society depends on firm climate action. At Telefónica, we have established a strategic commitment to mitigating climate change and we are decisively fulfilling it," said Emilio Gayo, CEO of Telefónica Spain. "We need a balanced energy mix, but our ultimate goal must be a transition that leads to complete decarbonization".
"This is a pivotal agreement in Spain, where renewable PPAs have yet to emerge as an instrument of cost efficiency and clean energy supply", said Rafael Mateo, CEO of ACCIONA's Energy business. "We are very pleased that Telefónica has chosen ACCIONA as a partner to make headway with its decarbonization commitments".
This new contract strengthens ACCIONA’s commercial energy business with large international clients. ACCIONA, with close to 10,300MW of renewable generation assets, was once again named the world’s greenest electricity company, according to the New Energy Top 100 Green Utilities annual ranking, carried out by Energy Intelligence.
ACCIONA supplies 100% renewable energy to over 500 companies and institutions worldwide, contributing to these firms’ decarbonization and climate change mitigation strategies. ACCIONA’s clients, now adding Telefónica to the list, include Apple, Bimbo, Merck, Asics, Unilever, Google, Maersk and Robert Bosch. ACCIONA is Spain’s leading 100% renewable energy retailer. Spain’s Competition Authority (CNMC) has certified over 6,000GWh of ACCIONA’s energy, which represents 11.5% of the total amount of certified energy in Spain.