Spanish utility Iberdrola has inked a power purchase agreement (PPA) with Italian grocery retail group Selex Gruppo Commerciale (Selex Group), marking a notable stride in Italy’s electrification and decarbonisation journey. The agreement, set to commence in July 2024, will supply 1,250GWh of clean energy annually, sourced from 77MW of solar photovoltaic (PV) capacity. This move is projected to reduce annual carbon emissions by approximately 37,000 tons, underscoring the potential of corporate renewable energy deals to drive meaningful environmental impact.
Selex Group, a conglomerate of 18 affiliated companies managing over 3,331 retail outlets, will distribute the energy among its various brands, including ‘Famila’, ‘A&O’, and ‘C+C’, as well as regional brands. The group’s 42,600 employees will benefit from the stable, clean energy supply, which is expected to enhance competitiveness and support decarbonisation goals. “This agreement strengthens the existing synergies among our associated companies regarding energy supply,” a Selex Group representative stated, highlighting the importance of long-term strategies to stabilise energy costs and tackle sustainability challenges.
The PPA’s unique contractual structure allows for shared terms among Selex Group’s subsidiaries, demonstrating innovative approaches to corporate energy procurement. Iberdrola’s involvement underscores the growing role of PPAs in Italian industries’ decarbonisation strategies, helping manage energy price volatility and ensuring a steady supply of renewable energy.
This partnership further cements Iberdrola’s footprint in Italy’s PPA market. The utility has already established contracts with industrial entities like BTicino, Bayer, Acciaierie Venete, and large-scale distribution groups for green energy from PV installations. As Italy accelerates its electrification and decarbonisation efforts, such agreements are likely to become more prevalent, shaping the country’s energy landscape and inspiring similar initiatives across Europe.
The agreement between Iberdrola and Selex Group serves as a testament to the power of collaboration in driving the energy transition. By combining Iberdrola’s renewable energy expertise with Selex Group’s retail network, this PPA not only reduces carbon emissions but also sets a precedent for other industries to follow. As more companies recognise the benefits of renewable energy procurement, the market for corporate PPAs is expected to grow, fostering a cleaner, more sustainable future for all.