Gonvarri Industries and Iberdrola Strengthen European Industrial Electrification with 10-Year Renewable Energy Agreement
Gonvarri Industries and Iberdrola have taken another major step toward accelerating industrial electrification and decarbonisation in Europe through the signing of a long-term renewable energy Power Purchase Agreement (PPA). The 10-year agreement will provide renewable electricity to eight Gonvarri Industries production facilities located across four European countries, reinforcing both companies’ commitment to sustainability, energy efficiency, and industrial competitiveness.
Under the terms of the agreement, Iberdrola will supply approximately 26,000 MWh of renewable electricity annually to the Gonvarri facilities. In addition to the energy supply itself, the agreement also includes guarantees of origin covering 100% of the electricity consumed at those sites, ensuring that all energy used under the contract is sourced from renewable generation assets.
The collaboration reflects the increasing importance of long-term renewable energy agreements in Europe’s industrial landscape. As manufacturers and industrial operators continue facing rising energy costs, regulatory pressure to reduce emissions, and growing expectations from customers and investors around sustainability, PPAs are emerging as a critical tool for securing stable and predictable energy supplies while supporting decarbonisation goals.
The electricity supplied under the agreement will primarily come from wind energy, which will account for around 80% of the total supply. The remaining 20% will be generated by solar photovoltaic facilities. The renewable supply portfolio supporting the contract is backed by approximately 15 MW of installed renewable generation capacity from Iberdrola, combining both wind and solar technologies to ensure reliable and diversified clean energy delivery.
For Gonvarri Industries, the agreement represents a significant milestone in its broader sustainability and electrification strategy. The company has been increasing efforts to reduce the environmental impact of its industrial operations by adopting cleaner technologies, improving energy efficiency, and integrating renewable energy into its manufacturing processes. By securing long-term renewable electricity supplies, the company can further electrify its production systems while lowering exposure to energy market volatility.
The agreement also helps Gonvarri Industries improve the competitiveness of its operations. Stable long-term electricity pricing provides greater certainty for operational planning and cost management, particularly in energy-intensive industrial sectors where fluctuations in electricity prices can significantly affect profitability. Access to renewable electricity also strengthens the company’s environmental credentials, helping meet the expectations of customers seeking lower-carbon supply chains.
Industrial electrification is increasingly viewed as one of the most important pathways for achieving Europe’s climate targets. Electrifying industrial processes while powering them with renewable energy can significantly reduce greenhouse gas emissions associated with manufacturing and heavy industry. Agreements such as this one demonstrate how energy providers and industrial companies can collaborate to accelerate the transition toward cleaner production models without compromising operational reliability or economic competitiveness.
For Iberdrola, the partnership further strengthens its role as one of Europe’s leading renewable energy suppliers and long-term energy partners for industrial customers. The company has continued expanding its renewable energy portfolio and PPA business across international markets as industries seek dependable access to low-carbon electricity solutions.
According to the Pexapark Renewables Market Outlook 2026 report, Iberdrola has maintained its position as the leading company in the European PPA market for the third consecutive year. The company’s growing portfolio of long-term agreements spans multiple countries including Spain, Portugal, Germany, Italy, the United Kingdom, the United States, Brazil, and Australia.
Iberdrola’s diversified renewable generation portfolio includes onshore wind farms, offshore wind projects, solar photovoltaic facilities, and other renewable technologies. This diversification enables the company to offer competitive and reliable energy solutions tailored to the needs of industrial and commercial customers operating across different markets and sectors.
The latest agreement with Gonvarri Industries aligns closely with Iberdrola’s wider strategy of accelerating the electrification of industry and supporting the transition toward a more sustainable energy system. Long-term partnerships with industrial customers not only create stable demand for renewable generation but also encourage investment in additional clean energy infrastructure.
As Europe continues to push toward carbon neutrality and energy independence, industrial demand for renewable electricity is expected to rise significantly in the coming years. Companies across sectors including steel, automotive, manufacturing, logistics, and construction are increasingly integrating renewable energy procurement into their corporate sustainability strategies.
Power Purchase Agreements are becoming especially important because they provide long-term price stability while enabling companies to demonstrate measurable progress toward emissions reduction targets. PPAs also support the financing and development of new renewable energy projects by providing predictable revenue streams for energy producers.
The agreement between Gonvarri Industries and Iberdrola therefore represents more than a standard electricity supply arrangement. It illustrates the evolving relationship between energy providers and industrial companies as both sectors adapt to the energy transition and work together to create more resilient and sustainable industrial ecosystems.
Commenting on the agreement, Josu Calvo, CEO of Gonvarri Industries, emphasized the strategic importance of the partnership for the company’s sustainability roadmap. He stated that the agreement marks a significant step forward in the company’s efforts to advance the electrification of production processes using renewable energy while continuing to decarbonise industrial operations across Europe.
Calvo highlighted that renewable energy integration is becoming increasingly central to the company’s long-term operational strategy, enabling Gonvarri Industries to improve efficiency while reducing its environmental footprint. The long-term nature of the agreement also provides confidence and predictability that can support future investments in cleaner industrial technologies.
David Martínez, Head of Customer Business at Iberdrola España, also underlined the broader economic and industrial importance of such agreements. He noted that partnerships like this strengthen industrial stability and competitiveness by offering long-term certainty around secure and sustainable energy supplies.
Martínez added that PPAs are playing a crucial role in encouraging investment, supporting industrial growth, and accelerating the electrification of the economy. By helping industries access renewable electricity at predictable prices, these agreements contribute to the development of a more efficient and resilient energy system capable of meeting future demand growth.
The agreement comes at a time when European industries are facing increasing pressure to balance sustainability objectives with operational efficiency and global competitiveness. Rising energy demand, decarbonisation targets, and geopolitical energy concerns are driving companies to secure cleaner and more reliable energy sources for the long term.
As the industrial sector continues its transition toward electrification and renewable energy adoption, partnerships like the one between Gonvarri Industries and Iberdrola are expected to become increasingly common across Europe and other global markets. These collaborations not only support emissions reduction but also help create a stronger foundation for sustainable industrial growth in the decades ahead.
Source Link: https://www.iberdrola.com/
