Novartis signs VPPAs bringing over 275 MW of renewables to Spain

Swiss multinational pharmaceutical company Novartis AG (SWX:NOVN) has sealed five virtual power purchase agreements (VPPAs) that will collectively add over 275 MW of wind and solar capacity in Spain.

The contracts were signed with three different developers, namely Acciona SA (BME:ANA), EDP Renewables (ELI:EDPR) and Enel Green Power, which will supply the electricity from six new wind and solar parks. These plants should be up and running by 2023, making Novartis the first pharmaceutical company set to hit 100% renewable electricity in its European activities through such contracts.

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"Executing five deals allows Novartis to diversify risk across technology, location, counterparty and deal structure making for a balanced portfolio of Spanish renewable energy," said John Powers, Vice President of Global Renewables and Cleantech at Schneider Electric, which acted as advisor in the project.

The signing of the Spanish VPPAs comes after the pharmaceutical company agreed a similar type of contract for the output of the Santa Rita East wind farm in Texas.

Novartis has set a goal to become carbon neutral in its own operations (Scope 1 and 2) by 2025, and to achieve carbon neutrality across its supply chain (Scope 1, 2 and 3) by 2030.