Spanish utility Iberdrola has signed a 10-year virtual power purchase agreement (VPPA) with national rail operator Renfe, covering 3,700 gigawatt-hours (GWh) of onshore wind energy. The agreement aims to support Renfe’s decarbonisation strategy while providing long-term price stability.
Under the deal, Renfe will receive 370GWh of renewable electricity annually through 2035—equivalent to the output from 190 megawatts (MW) of installed wind capacity. The agreement is intended to shield the operator from market volatility while reducing carbon emissions in the transport sector.
“This contract promotes renewable energy production while stabilising Renfe’s energy costs,” said Marta Torralvo, Renfe’s general economic-financial director. “Our trains already represent the most energy-efficient passenger and freight system in Spain, with a carbon footprint 20 to 30 times lower than cars or planes.”
David Martínez, director of Clientes España at Iberdrola, said the VPPA reflects the growing role of clean energy in transport. “The agreement highlights the value of zero-emission electrification in the transport sector, which is responsible for more than a third of energy consumption in our country,” he said. “PPAs are a key tool for customers who want to secure renewable energy at a fixed price and in the long term.”
According to Iberdrola, the agreement is expected to help reduce Spain’s CO₂ emissions by more than 2 million tonnes over its duration.
Iberdrola remains a leading provider of corporate PPAs in Europe, signing 1,251MW worth of contracts in 2024—a 38% increase from the previous year. The company currently has active PPA agreements in nine countries, including the US, UK, and Brazil, with clients such as Amazon, Microsoft, Bayer, Meta, and Telefónica.
Renfe stated the deal aligns with its long-term energy cost management and climate targets. The company has already reduced its carbon footprint per transported unit by over 90% since 1990, significantly outperforming Spain’s national climate goals for 2030.
