Iberdrola signs offshore wind PPA with Amazon as part of wider alliance

Spanish utility Iberdrola SA (BME:IBE) will partner with Amazon.com Inc (NASDAQ:AMZN) on new wind and solar capacity by signing power purchase agreements (PPA) for projects in Europe, the US and Asia-Pacific.

The commitment is part of a global renewable energy and cloud computing deal between the companies that was unveiled today.

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Under the initial PPA, Iberdrola will provide the US e-commerce and technology giant with 1.1 TWh a year from two of its offshore wind farms in Germany -- the 476-MW Baltic Eagle and the 300-MW Windanker. The offshore wind projects, both located in the Baltic Sea, are due to be completed in 2024 and 2026, respectively.

The renewable energy partnership is designed to help Amazon remain on track to power its operations with 100% renewable energy by 2025.

The companies will also partner on digitalisation with Amazon Web Services Inc (AWS) acting as Iberdrola’s preferred cloud provider. AWS’ IT infrastructure will help the energy company optimise renewable energy production, modernise the power grid to integrate renewables and improve visibility across its operations. The companies are also developing an Advanced Smart Assistant application for Iberdrola customers.

“The agreement today, combining sun, wind, and cloud, will enable new renewable generation capacity around the world and accelerate the digital revolution in the energy sector,” commented Iberdrola’s executive chairman Ignacio Galan.

Simultaneously, ScottishPower, part of Iberdrola, said it has formalised a 1.4-GW order with turbine manufacturer Siemens Gamesa for the East Anglia Three offshore wind farm.

Iberdrola’s executive chairman is highlighting the two deals during a speech at the Aurora Spring Forum in Oxford today.