BayWa r.e. and Holaluz have signed a 10-year Power Purchase Agreement (PPA) for a 20 MWp solar park near Poblete in the Castile-La Mancha region of Spain.
The PPA marks another milestone for BayWa r.e. on its journey towards grid parity in Europe, as this will be the company's seventh solar project in Spain developed without any support from subsidies. For Holaluz this agreement is a new step to a 100% renewable world.
The project will be built exclusively on single-axis trackers and commissioning of the solar park is planned for summer 2022. In its first year of full production, the park is expected to generate approximately 37.5 GWh of solar energy.
The partnership will enable BayWa r.e. and Holaluz to supply 9,500 Holaluz customers with renewable energy.
Daniel Parsons, Head of PPA at BayWa r.e., commented: "After successful large-scale agreements for our Don Rodrigo, Don Rodrigo II, Tordesillas I and II, Illora and Archidona solar parks, this new PPA with Holaluz demonstrates once more that grid parity is becoming a reality.
"We are very proud to be leading the way for subsidy-free renewable energy in Europe and taking concrete action against climate change. The collaboration with Holaluz is positive in all respects. We have found a great partner who is well established in the Spanish electricity market and shares our vision of a 100% renewable future."
The project underlines Holaluz' commitment to foster its position as the leading green electricity supplier in Spain.
Carlota Pi, co-founder and CEO at Holaluz said: "Our goal is to create a 100% renewable world by connecting people to green energy. This partnership brings us one step closer to this goal.
"Together with BayWa r.e. we will provide green energy to our customers. We are delighted about this first cooperation with BayWa r.e. and are looking forward for more business opportunities in the future."
In addition to the PPA, the two companies have also signed a framework agreement to help Commercial & Industrial customers obtain reliable and high-quality energy solutions such as self-consumption models, e-mobility solutions, or financial concepts including leasing solutions or PPAs.
"Commercial and industrial companies can benefit in two ways," said Ana Lopez, Head of Sales at BayWa r.e. España S.L.U.
"With our high-quality PV energy, as well as other energy solutions they are able to achieve their sustainability goals and at the same time get great savings on their energy bills once their tailored solution is connected to the grid.
"We are driving the energy transition in Spain in both the private and the industrial sector."
The Spanish government goals are to source 70% of electricity from renewables by 2030, and to be carbon neutral by 2050. With a pipeline of 1.4 GW of renewable projects in the country planned for delivery by 2027, BayWa r.e. is contributing to meeting these targets.