Acciona to supply renewable power to Telefonica

Spanish infrastructure and renewables group Acciona SA (BME:ANA) will supply 100% renewable power to meet 71.6% of Telefonica SA's (BME:TEF) high-tension remote-metered power consumption in Spain in 2018.

Under a deal announced by the companies on Thursday, a subsidiary of Acciona Energy will supply power to 83 major locations of the telecommunications company in Spain, including data processing centres, offices and other installations, with an estimated total power usage of 430 GWh.

The agreement is in line with Telefonica's commitment as part of its Renewable Energy Plan to buy mainly renewable energy from domestic sources.

According to the announcement, Telefonica now sources 44% of its worldwide electricity consumption from renewable sources. It has a goal of 50% renewable power by 2020 and 100% by 2030. The company says it already gets 79% of its energy consumption in Spain from renewables, and 100% in both the UK and Germany.

Acciona said the contract expands its supply of its renewable-only electricity to large corporations in the Iberian market. It has undertaken to supply 5 TWh to this segment this year and projects 18% growth next year.

The agreement was signed by Telefonica chairman and chief executive Jose Maria Alvarez Pallete and Acciona’s chairman and chief executive Jose Manuel Entrecanales.

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