EDP Renovaveis SA (ELI:EDPR) has signed a power purchase agreement (PPA) with US consumer goods giant Procter & Gamble Co (NYSE:PG) to deliver it 127.5 MW of new green capacity in Spain.
The 15-year PPA will support the installation of the 100-MW (measured in alternating current) Penaflor solar farm in Valladolid province, and the 47.5-MW Sierra de la Venta wind farm in Albacete.
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The wind farm will send 27.5 MW to Procter & Gamble under the contract, EDPR’s parent company EDP SA (ELI:EDP) said in bourse filing on Thursday. Its remaining 20-MW are covered by a separate PPA with an unnamed entity.
Both Penaflor and Sierra de la Venta are expected to reach commercial operation date (COD) in 2023.
Thanks to these PPAs, around 40% of electricity needed by Procter & Gamble’s factories across Europe will be produced in Spain, Procter & Gamble Espana said separately.
On global level, Procter & Gamble this week adopted an action plan to reach net zero greenhouse gas (GHG) emissions across its operations and supply chain, “from raw material to retailer”, by 2040. The company wants to be able to procure 100% renewable electricity by 2030, and said that it has already approached that target by purchasing 97% globally.