Capital Energy and Statkraft have executed their fifth PPA in Spain for the 51-megawatt La Herrada wind farm
Following the previous agreements between the companies for the Las Tadeas, Buseco and Loma de los Pinos wind farms, as well as for the La Solana photovoltaic plant
- The 10-year agreement envisages the sale of all the energy produced by this Albacete wind farm, the first one being built by Capital Energy in Castile-La Mancha, which will generate approximately 130,000 megawatt hours (MWh) per year
- The launch of La Herrada will involve an investment of around 53 million euros and will create more than 170 direct jobs during the peak construction periods, which began last May
Madrid, 21 July 2023.- Capital Energy, the Spanish energy company founded two decades ago aiming to become the Iberian Peninsula’s first vertically integrated, fully renewable operator, has recently signed its fifth Power Purchase Agreement (PPA) in Spain with Statkraft, Europe’s largest renewable energy generator.
In particular, this latest agreement sealed by both companies is valid for 10 years and foresees the sale to Statkraft of all the electricity produced by the La Herrada wind farm in Albacete, the first to be built by Capital Energy in Castile-La Mancha and which has an access capacity of 51 megawatts (MW).
The 10 wind turbines of this facility, located in Montealegre del Castillo, will be able to supply some 130,000 megawatt hours (MWh) per year, which will be enough to supply more than 48,000 homes in Castile-La Mancha with clean electricity, as well as avoiding the emission of more than 47,000 tonnes of CO2 into the atmosphere each year.
The launch of this facility, whose construction began last May, will involve an investment of around 53 million euros and will create more than 170 direct jobs during the peak construction periods. During the operating and maintenance phase, it is expected to provide stable employment to seven professionals from the area and to also help generate around six indirect jobs.
Through this new contract signed with Statkraft, Capital Energy continues to strengthen the financial structure of its renewable energy plants. Previously, both companies had signed similar long-term power purchase agreements for four other facilities: the wind farms Las Tadeas (Castile and León), Buseco (Asturias) and Loma de los Pinos (Andalusia) and the photovoltaic plant La Solana (Extremadura), the latter three of which are jointly owned with the Austrian electricity company Verbund.
According to Juan José Sánchez, CEO of Capital Energy, “signing this new agreement for the La Herrada wind farm with a company as important as Statkraft is undoubtedly a major milestone for our company, which continues to take steps to consolidate, from all standpoints, its 100% sustainable and digital renewables-based project.”
Tiago Thomaz, Head of Origination at Statkraft Iberia, explains that “we are very satisfied with this new partnership with Capital Energy, which will enable us to continue diversifying our renewable portfolio in the Iberian Peninsula. It is through agreements like this one that we can adapt to the needs of our customers, while at the same time boosting the deployment of new renewable facilities in Spain, ensuring that their production is purchased.”
Positive impact in the area
La Herrada will bring benefits related to the Capital Energy Territories Project, an initiative that combines its contribution to the decarbonisation of the economy and the transformation of the energy model with its desire to help foster growth in Spain’s regions, harnessing local talent and nurturing each area’s social, industrial and business fabric.
The energy company has signed the first partnership agreement of its kind in Castile-La Mancha with the Montealegre del Castillo Town Council, whereby it undertakes to foster various actions agreed between the parties and which will meet the needs of the abovementioned town in the province of Albacete.
Throughout its useful life, Capital Energy’s first wind farm in this region will also contribute the equivalent of 1.4 euros per year to GDP and about 150,000 euros in annual tax to the local coffers. In addition to this recurring sum is the one-off payment of local building tax (ICIO) and other taxes, which could exceed one million euros.