Iberdrola to build on-site solar for Lactalis under long-term PPA

Iberdrola SA (BME:IBE) said Wednesday that it will build and operate a 2.3-MWp solar PV array for on-site consumption at a cheese factory in Spain, after signing a contract for the set-up with French dairy group Lactalis.

The installation is spelled out in a power purchase agreement (PPA), under which Lactalis will procure the solar energy from Iberdrola for 15 years. The PPA can be extended to 25 years, the Spanish electric utility said.

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The factory, located in the municipality of Villarrobledo, is the dairy company’s largest cheese production site in Spain. Some 40,000 square-metres (430,556 sq ft) of the factory’s surface will be set aside for solar panels to power the cheese making and help Lactalis cover 25% of its electricity needs in Villarrobledo.

Iberdrola said it expects the array to go online in March 2022. As of the first quarter of 2022, 75% of the factory’s power consumption will be met with wind and solar energy in line with Lactalis’ sustainability commitments, according to the press release.