EDP and Asturiana de Zinc sign agreements for the sale of energy from EDPR wind farms
It is a historic contract, as it has a duration of almost two decades, becoming the longest-term contract signed by EDP Spain.
Asturiana de Zinc and EDP have signed power purchase agreements (PPA) for energy from EDP Renewables (Euronext: EDPR) wind farms, for the next 19 years (between 2021 and 2040). This is the longest-term contract signed by EDP Spain since its marketer was established.
For these 19 years, the energy company will provide the San Juan de Nieva plant with 237 GWh a year, produced in the wind farms that EDP Renewables is developing in Spain. This amount of energy is equivalent to the average yearly electricity consumption of 65,000 homes.
This way, AZSA renews the trust it has placed in EDP. The company is one of the world’s biggest electrolytic zinc producers, and the San Juan de Nieva plant stands out as one of the world’s largest for this material and for having one of the lowest operating costs.
Through these agreements, both companies also reinforce one of their strategic priorities: environmental protection. Using this renewable energy will prevent the emission of 63,000 tons of CO2 every year, an impact on air quality similar to that of 4.5 million new trees.
AZSA has been EDP’s marketer’s largest customer since 2013 and San Juan de Nieva is the second largest supply point of Spain.
The agreement is one of the longest-lasting ever signed in Spain and offers a number of advantages. It is all about electric energy from 100% renewable sources and provides long-term visibility of the energy costs.
For Carlos Navalpotro, president of Asturiana de Zinc, “these agreements grant us visibility and stability in regard to our electricity costs, which account for up to 60% of our total production costs this year. Zinc plays a major role in energy transition. By putting together this new electricity supply agreement with EDP, we aim to guarantee that we meet our customers’ requirements for low carbon metal. We also want to ensure that AZSA plays its part in helping Glencore achieve its ambition of total net zero emissions by 2050.”
For Miguel Fonseca, commercial counsellor of EDP Spain, “this agreement strengthens our close relationship with AZSA and represents our strategic priorities in energy transition, such as the promotion of renewable energies and offering innovative and custom solutions to our customers, at the same time that it positions EDP as a strong business partner capable of innovating and developing long-term projects.”
This agreement is part of EDP’s recently approved Strategic Plan for the 2021-2025 term, which provides for investments worth 24 billion euros. These investments will be focused on three main lines of action: growth in renewable energies, flexibility and intelligence of electricity distribution networks, and commitment to designing and offering the most innovative solutions for their customers, like this PPA with AZSA. This high-reaching plan contributes to EDP’s goal of becoming 100% green in 2030.
