Iberdrola and Mercadona Secure Decade-Long Renewable Energy Supply Agreements

Iberdrola and Mercadona Strengthen alliance with 300MW Renewable Energy Deal

Iberdrola and mercadona have considerably expanded their existing partnership through the signing of long-term Power Purchase Agreements (PPAs) totaling over 300 MW. This new agreement will see renewable energy, generated from both wind and solar assets, supplied to Mercadona’s logistics and supermarket centers.

This latest progress underscores the shared commitment of both companies to advancing the electrification of their operations. Iberdrola is already actively involved in supplying,commissioning,and operating up to 3,500 charging points for electric vehicles across 800 Mercadona supermarkets in Spain and Portugal,marking a crucial step forward in broadening the public EV charging infrastructure.

David Martinez, Customer Director Spain at Iberdrola, highlighted the strategic importance of such collaborations: “Iberdrola has been dedicated to increasing its collaborations for years to promote electrification, recognizing it as the most efficient solution for businesses.Partnerships like this one with Mercadona are essential in supporting the ongoing growth of a renewable electricity mix. PPAs serve as the ideal instrument for clients aiming to electrify, as they guarantee the consumption of renewable energy at a consistent, long-term price.”

Echoing this sentiment, Adolfo Ortiz, Mercadona Energy Director, stated: “Through this agreement, we are advancing our strategy to secure a stable and competitive energy supply, thereby mitigating the impact of electricity market volatility on our budget. Furthermore, we are reinforcing our commitment by once again choosing renewable and environmentally responsible energy sources.”

Iberdrola boasts extensive experience in the PPA market, managing energy purchase agreements across Spain, Portugal, germany, Italy, the United Kingdom, the United States, Brazil, Mexico, and Australia. Their portfolio includes both onshore and offshore wind, and also photovoltaic projects. Iberdrola has been a pioneer in offering innovative PPA solutions for over a decade, solidifying its position as a leading player in the global energy sector.

This latest agreement reinforces Iberdrola’s leadership in the European PPA market, a position confirmed for the second consecutive year by the Pexapark Renewables Market Outlook 2025 report. The company has secured 1,251 MW in 2024, representing a ample 38% increase compared to the previous year.

Iberdrola has previously announced similar agreements with major global corporations, including Amazon, for wind and photovoltaic PPAs across Spain, Portugal, and the UK, supporting the East Anglia Three offshore wind farm. Their client portfolio also features collaborations with other prominent international entities such as Bayer,BP,telefónica,and Salzgitter,alongside numerous domestic clients.

How will this PPA specifically contribute to Mercadona achieving its broader sustainability goals, beyond just reducing Scope 2 emissions?

Powering Sustainability: A Landmark Deal for Renewable Energy in Spain

spanish energy giant Iberdrola and leading supermarket chain Mercadona have finalized long-term Power Purchase Agreements (PPAs) guaranteeing 100% renewable electricity for Mercadona’s operations for the next decade. This significant agreement underscores a growing trend towards corporate commitment to sustainable energy and the increasing viability of renewable energy sources in meeting large-scale energy demands. The deal, announced in late 2024 and fully implemented in 2025, represents a substantial investment in green energy and a major step towards reducing carbon footprints for both companies.

Key Details of the Iberdrola-Mercadona PPAs

The agreements encompass a total contracted capacity of 150 MW.This power will be supplied from several of Iberdrola’s wind farms and solar plants located across Spain. Here’s a breakdown of the key elements:

duration: 10 years, providing long-term price stability and security of supply.

Capacity: 150 MW of renewable energy capacity.

Source: Primarily wind and solar power, aligning with Mercadona’s commitment to clean energy.

Geographic focus: Power will be sourced from Iberdrola’s facilities within Spain, supporting local renewable energy progress.

Guaranteed origin: Mercadona will receive Guarantees of Origin (GOs) certificates, verifying the renewable source of the electricity.

the Impact on Mercadona’s Sustainability Goals

Mercadona, known for its efficient supply chain and commitment to quality, has set enterprising sustainability targets. This PPA is a cornerstone of those efforts.

Reduced Carbon Footprint: The agreement will considerably reduce Mercadona’s Scope 2 emissions – those associated with purchased electricity.

Enhanced Brand Reputation: Demonstrating a commitment to environmental responsibility enhances Mercadona’s brand image and appeals to environmentally conscious consumers.

Cost Stability: Long-term PPAs provide price predictability, shielding Mercadona from volatile fossil fuel prices.

Supply Chain Sustainability: This move encourages sustainability throughout Mercadona’s entire value chain, influencing suppliers to adopt greener practices.

Iberdrola’s Role in Driving Renewable Energy Adoption

Iberdrola is a global leader in renewable energy, with a substantial portfolio of wind, solar, and hydro power assets. This PPA with Mercadona exemplifies the company’s strategy of forging long-term partnerships with corporate clients to accelerate the transition to a low-carbon economy.

Expanding Renewable Capacity: The agreement incentivizes iberdrola to continue investing in new renewable energy projects.

PPA Expertise: Iberdrola has become a key player in structuring and executing PPAs, facilitating the growth of the renewable energy market.

Supporting Spain’s Energy Transition: The deal contributes to Spain’s national goals for increasing the share of renewable energy in its electricity mix.

innovation in Energy Solutions: Iberdrola is actively developing innovative energy solutions, including smart grids and energy storage, to enhance the reliability and efficiency of renewable energy supply.

The Broader Trend: corporate PPAs and Renewable Energy Demand

The Iberdrola-Mercadona agreement is part of a wider trend of corporations actively seeking to procure renewable energy through PPAs. Several factors are driving this growth:

ESG Investing: Increasing pressure from investors to prioritize Environmental, Social, and Governance (ESG) factors.

Consumer Demand: Growing consumer preference for sustainable products and services.

Falling Renewable Energy Costs: The declining cost of wind and solar power makes them increasingly competitive with fossil fuels.

Government Incentives: supportive government policies and regulations promoting renewable energy development.

Energy Security: Diversifying energy sources and reducing reliance on imported fossil fuels.

Other companies actively engaging in similar PPAs include tech giants like Google and amazon, as well as major manufacturers and retailers. Even energy companies like TotalEnergies and Eni are expanding their renewable energy offerings, as highlighted in consumer reports (like those from 60 Millions de Consommateurs).

Benefits of Long-Term Renewable Energy Agreements

Long-term ppas offer several advantages for both energy suppliers and corporate buyers:

Price Certainty: Fixed-price agreements protect against price volatility.

Revenue Stability: Guaranteed revenue streams for renewable energy developers.

Reduced Risk: Mitigates risks associated with fluctuating energy prices and policy changes.

Environmental Benefits: supports the development of clean energy and reduces carbon emissions.

* Positive Public Relations: Demonstrates a commitment to sustainability and enhances brand reputation.

Practical Tips for Businesses Considering PPAs

For businesses considering entering into a PPA, here are some key considerations:

1. Assess Energy Needs: Accurately determine your current and future energy consumption.
2. Define Sustainability Goals: Clearly articulate your sustainability objectives