Endesa has signed a long-term bilateral energy purchase contract (Power Purchase Agreement or PPA) with Verbund Green Power Iberia, the Spanish subsidiary of the Austrian group Verbund. Through the agreement, Verbund will supply Endesa with renewable energy from a wind farm located in the province of Huelva, in operation since 2023.
This milestone reinforces the commitment of both energy companies to sustainability and highlights their respective decarbonization strategies.
In recent years, Endesa has signed numerous PPAs with wind and photovoltaic energy developers, contracting nearly 3 TWh per year under these agreements, thus promoting price stability in the electricity market and fostering the growth of renewable energies.
PPAs are highly effective tools to mitigate the risks linked to price fluctuations and ensure long-term stability to cover energy needs. These contracts enable companies to satisfy the energy demands of its large customers and to cover a portion of the company's own energy requirements, guaranteeing a renewable energy source at stable and competitive prices. In Spain, Verbund Green Power Iberia actively manages its facilities through long-term PPA contracts and other products with varying structures and durations to optimize revenues while reducing exposure to market prices. In 2024, Verbund Green Power Iberia's total production exceeded 1TWh.
These types of energy agreements are a strategic pillar for Verbund's business across its operating markets. As part of its Mission V strategy, the multinational energy company aims to cover 25% of its total generation with solar and wind power by 2030.
About Endesa
Endesa is the leading electric company in Spain and the second largest in Portugal. It is also ranked as the second largest gas operator in the Spanish market. Endesa operates an integrated business model spanning electricity generation, distribution, and retail. Furthermore, the company offers value-added services focused on the electrification of energy use for households, businesses, and public administrations. Endesa is committed to the United Nations' Sustainable Development Goals (SDGs) and corporate social responsibility. In the latter area, it also works through the Endesa Foundation. Our team comprises around 9,000 employees. Endesa is part of Enel Group, the largest European utility by ordinary EBITDA[1].
[1] Enel's leadership in the different categories is defined by comparison with competitors' FY2023 data. Fully state-owned operators are not included.
About Verbund
Verbund is Austria's leading energy company and one of Europe's largest producers of renewable energy. The Group generates around 98% of its electricity from renewable energies.
Verbund Green Power Iberia, Spanish subsidiary of the Verbund Group, is a producer of renewable electricity in Spain, mainly wind and solar photovoltaic power. The company currently has a total of 710 MW in operation, as well as some 40 MW under construction. The portfolio of projects at an advanced stage of development totals 2 GW.
