February 12 (Renewables Now) - Iberdrola SA (BME:IBE) and French telecom group Orange SA (EPA:ORA) have signed a power purchase agreement (PPA) that will in part support the development of the Spanish utility’s 328-MW solar project in the home country.
Under terms of the PPA, Iberdrola is to supply electricity to Orange’s operations in Spain for 12 years, the utility said Wednesday. The PPA is already in force and one half of the supply it covers - 200 GWh per year -- is tied to the new build.
The 328-MW photovoltaic (PV) project is named Ceclavin, after one of two municipalities it will occupy in the Spanish region of Extremadura. Iberdrola will invest roughly EUR 250 million (USD 272.8m) in its construction and expects to have the solar park up and running this year.
Once commissioned, the Ceclavin facility will be Iberdrola’s third operational PV park in Extremadura.
(EUR 1.0 = USD 1.091)