September 26 (Renewables Now) - Spanish power utility Endesa SA (BME:ELE) has emerged successful in a tender for the supply of electricity from 100% renewable sources to public administration bodies in Andalusia.
A contract for the delivery of electricity to some 5,000 supply points belonging to bodies attached to the Andalusian energy management network (REDEJA) was up for bidding. According to the Andalusian Energy Agency, which manages REDEJA, Endesa won the race against two other unnamed power retailers.
The tender, launched by the Andalusian ministry of finance, industry and energy, will award a two-year contract worth a maximum EUR 500 million (USD 546.6m). The contract, to be formalised as a framework agreement, enters into force on October 31, 2019, and comes with the possibility for a two-year extension.
The Andalusian Energy Agency said Wednesday that the government had established some tender conditions that were aimed at minimising the impact of energy price hikes occurring in recent years. With the new contract, the regional government will shave 12.7% on average off its electricity bill compared to having purchased power at market prices.
(EUR 1.0 = USD 1.09)