Spain’s state-owned rail company Renfe and Bilbao-based electric utility Iberdrola España have joined forces to promote the use of wind power in passenger and freight rail transport in Spain.

The two companies have signed a deal to buy onshore wind energy through a virtual power purchase agreement ( VPPA ) for 370 gigawatt-hours a year 10 years, equivalent to the output generated by 190 megawatts of wind power.

."With this agreement with Renfe, we can highlight electrification without emissions in transport, which is responsible for more than a third of all energy consumed in our country," says David Martínez, director of clients at Iberdrola España. "Partnerships such as this one are essential to support the development of a renewable energy mix. Three PPAs, through their different modalities, are a key tool for customers who want to secure renewable energy at a fixed, long-term price."

"The high volatility of energy prices was causing significant alterations and uncertainty in the evolution of results, and in this way, these costs are now predictable," adds Renfe chief financial officer Marta Torralvo. "Agreements such as the one signed with Iberdrola España help us to advance along this path."

The Iberdrola Group, of which Iberdrola España is a part, has extensive experience in PPAs. The company manages power purchase agreements in Spain, Portugal, Germany, Italy, the United Kingdom, the United States, Brazil, Mexico, and Australia for onshore and offshore wind and photovoltaic projects.