Global medicines company Novartis has signed two 10-year virtual power purchase agreements (PPAs) with ACCIONA to buy 135MW of clean energy.
ACCIONA will supply the contracted energy from two new solar projects in Spain.
The PPAs are part of Novartis’ efforts to reach its target of becoming carbon neutral by 2025.
In addition, the agreements will also help the company to procure more than half of energy that is required to power its European operations with renewable energy.
Novartis chief sustainability officer Montse Montaner said: “Energy efficiency and renewable energy solutions are the cornerstones of our strategy for reducing emissions.
“We are proud to be joined by ACCIONA and other like-minded partners on our environmental sustainability journey.”
ACCIONA to invest €120m in new PV plants for Novartis contracts
To meet the contracts with Novartis, ACCIONA is planning to build two new solar plants with a combined capacity of 210MW.
One of them will be a 125MW solar project that be located in Almendralejo, in the province of Badajoz, Extremadura.
The second project will have a capacity of 85.7MW that will straddle the municipalities of Jarafuel y Ayora in Valencia.
ACCIONA will invest a total of around €120m in the two new plants, which supply 80% of their produced electricity to Novartis.
The solar project in Extremadura is expected to begin operations in the fourth quarter of 2022, while Valencian plant in the first quarter of 2023.
In September, ACCIONA started construction on the 238MW Malgarida photovoltaic complex, which is its seventh renewable energy facility in Chile.
ACCIONA energy CEO Rafael Mateo said: “Our aim is to reinforce our operations through a balanced commercialization model.
“Guaranteeing the sale conditions of 80% of the output of these new plants through a PPA deal with a global client such as Novartis is in line with our strategy.”