Gestamp and Iberdrola Sign 10-Year Renewable Energy PPA to Power European Manufacturing Operations
Global renewable energy leader Iberdrola and multinational automotive components manufacturer Gestamp have entered into a long-term renewable energy Power Purchase Agreement (PPA) that will supply clean electricity to several of Gestamp’s manufacturing facilities across Europe. The agreement, which spans 10 years, will provide approximately 660,000 megawatt-hours (MWh) of renewable electricity to support the company’s operations, reinforcing both firms’ commitment to accelerating industrial decarbonization and promoting sustainable manufacturing practices.
The new partnership highlights the increasing role of renewable energy procurement in the automotive supply chain, where companies are seeking reliable and cost-effective clean energy solutions to meet sustainability goals while maintaining operational competitiveness. By securing renewable electricity through this PPA, Gestamp strengthens its long-term energy strategy while contributing to the broader transition toward low-carbon industrial processes across Europe.
Long-Term Renewable Supply for European Facilities
Under the agreement, Iberdrola will supply renewable electricity equivalent to 660,000 MWh over the contract period. The deal covers 34 megawatts (MW) of installed renewable capacity and will ensure that the energy supplied to the designated Gestamp facilities is sourced entirely from renewable generation.
The electricity mix will consist of approximately 80% wind energy and 20% solar energy, reflecting Iberdrola’s diversified renewable generation portfolio. The supply will also be supported by certificates of origin, guaranteeing that the energy delivered to Gestamp’s operations is fully traceable and produced from renewable sources.
For Gestamp, the contract provides long-term price certainty and stability in energy procurement. Through the PPA structure, the company can secure a fixed and competitive electricity price over the next decade, shielding its operations from volatility in wholesale energy markets. This financial predictability is increasingly important for energy-intensive industries such as automotive manufacturing, where power costs represent a significant portion of operating expenses.
The renewable energy agreement also aligns with Gestamp’s broader strategy of electrifying its industrial processes and improving energy efficiency across its global manufacturing network. As the automotive sector transitions toward more sustainable production and electric mobility, suppliers like Gestamp are under growing pressure to reduce their carbon footprints while ensuring operational reliability.
Supporting Decarbonization of the Automotive Supply Chain
The automotive industry is undergoing a major transformation driven by electrification, stricter environmental regulations, and growing consumer demand for low-carbon mobility solutions. Manufacturers and suppliers alike are increasingly integrating renewable energy into their operations as part of comprehensive sustainability strategies.
For Gestamp, the new renewable energy contract represents a meaningful step in reducing greenhouse gas emissions associated with its production activities. The company specializes in the design, development, and manufacturing of highly engineered metal components used in vehicle structures, including safety-critical parts that contribute to lighter and more efficient vehicles.
By powering its European manufacturing facilities with renewable electricity, Gestamp aims to reduce the environmental impact of its production processes while supporting the decarbonization of the broader automotive supply chain. Lower-emission manufacturing is becoming an essential component of vehicle lifecycle sustainability, especially as automakers seek to minimize the carbon footprint of their entire value chain.
The adoption of renewable power through long-term PPAs is one of the most effective ways for industrial companies to reduce Scope 2 emissions — those associated with purchased electricity. Through this agreement, Gestamp not only lowers its carbon footprint but also demonstrates its commitment to supporting the transition toward cleaner industrial energy systems.
Iberdrola Expands Its Industrial Partnerships
For Iberdrola, the agreement represents another step in strengthening its position as a key renewable energy partner for major industrial companies. The Spanish energy company is widely recognized as one of Europe’s leading electricity providers and a global pioneer in renewable energy development.
Over the past two decades, Iberdrola has invested heavily in wind, solar, and other renewable technologies, building a large portfolio of clean energy assets across multiple markets. The company has also emerged as one of the most active participants in the global PPA market, signing long-term renewable energy agreements with corporations seeking to decarbonize their operations.
According to the Pexapark Renewables Market Outlook 2026 report, Iberdrola maintained its leading position in the European power purchase agreement market for the third consecutive year. This recognition highlights the company’s strong track record in delivering renewable energy solutions tailored to the needs of large industrial and commercial customers.
Corporate PPAs have become a key pillar of Iberdrola’s strategy, enabling the company to establish stable long-term partnerships with businesses while supporting the growth of renewable energy generation. These contracts also play an important role in accelerating electrification across industrial sectors and ensuring that the increasing demand for clean energy can be met in a reliable and economically viable manner.
Advancing Europe’s Clean Energy Transition
The agreement between Iberdrola and Gestamp illustrates the growing collaboration between renewable energy producers and industrial consumers as Europe continues to transition toward a more sustainable energy system. Long-term renewable energy contracts provide companies with access to clean electricity while simultaneously supporting the development of new renewable generation projects.
By signing multi-year PPAs, companies like Gestamp help create predictable demand for renewable power, which in turn facilitates further investment in wind and solar infrastructure. This model has become increasingly popular across Europe as governments, corporations, and investors work together to accelerate the shift away from fossil fuels.
For Iberdrola, expanding its PPA portfolio is a critical element of its strategy to promote an energy system that is secure, competitive, and environmentally sustainable. The company continues to focus on supporting the electrification of industry and business activities, recognizing that electrification powered by renewable energy is essential to achieving long-term climate goals.
Renewable Agreements in the Automotive Sector
The agreement with Gestamp also reflects Iberdrola’s growing involvement in the automotive sector, where energy partnerships are becoming increasingly common. Vehicle manufacturers and suppliers are seeking renewable power to reduce emissions in manufacturing processes, which is an important step toward delivering more sustainable vehicles.
In Spain alone, Iberdrola has signed several agreements with automotive companies in 2026 that collectively cover approximately 50 MW of installed renewable capacity. These contracts are expected to supply around one million megawatt-hours of clean electricity over their duration, demonstrating the scale at which renewable PPAs are being adopted within the industry.
Such partnerships not only help companies meet environmental targets but also enhance the competitiveness of European manufacturing by reducing exposure to energy price fluctuations and regulatory risks associated with carbon emissions.
Leadership Perspectives
Javier Imaz, Chief Purchasing Officer at Gestamp, highlighted the strategic importance of the agreement for the company’s sustainability objectives.
He noted that the contract represents a significant milestone in Gestamp’s efforts to implement more sustainable production processes, emphasizing the company’s commitment to electrification, energy efficiency, and the use of renewable energy sources. According to Imaz, these initiatives are part of Gestamp’s broader sustainability strategy, which aims to support the decarbonization of the automotive industry’s supply chain while strengthening the company’s long-term operational resilience.
David Martínez, Director of Customer Business at Iberdrola España, also emphasized the importance of the partnership. He stated that the agreement reinforces Iberdrola’s role in supporting industrial companies as they transition toward more sustainable and efficient energy models.
Martínez explained that long-term renewable energy agreements like this one help accelerate the adoption of clean energy technologies while enabling companies to meet ambitious sustainability goals without compromising economic competitiveness.
A Model for Sustainable Industrial Collaboration
As industries across Europe face mounting pressure to reduce emissions and adopt cleaner energy sources, collaborations between renewable energy providers and manufacturers are expected to become increasingly common. The partnership between Iberdrola and Gestamp provides a clear example of how corporate PPAs can deliver both environmental and economic benefits.
For Gestamp, the agreement ensures access to reliable, renewable electricity that supports its long-term sustainability goals. For Iberdrola, it strengthens its growing network of industrial customers and reinforces its leadership in the renewable energy market.
Together, the two companies are demonstrating how strategic energy partnerships can help transform industrial operations while contributing to a cleaner and more sustainable energy future for Europe.
Source Link: https://www.iberdrola.com/
