According to the company’s website press release on March 30, 2023, for many years, Iberdrola has been closing PPAs in the US. Now we’re starting to sign similar contract with major industrial companies in Europe.
In the case of Spain, we have to note that 80 % of the electricity is sold through forward contracts spanning from 2 to 20 years. For instance, we’ve dedicated a full solar plant to supply Heineken and help the company decarbonize its activity.
The positive fact about the deal with Amazon is that it’s a global agreement, beginning with Germany and extending it to other markets, including Australia.
The US regulatory framework provides the predictability that companies like us need to plan long-term investments, knowing that we’ll have access to the tax credit incentives. However, our decision to expand investment activity in the US has not been motivated by the IRA (Inflation Reduction Act) but by our needs to grow grid and renewable infrastructure in the US. In the US, 80 % of our business is in transmission and distribution, so it is good to see regulators want investment in the grid, which Iberdrola are providing.
Europe has been leading for decades and showing leadership with providing good funding to green energy projects.
