Spanish independent power producer (IPP) BNZ has signed its first virtual power purchase agreement (VPPA), with the European subsidiary of packaging supplier Ardagh Group.
As part of the deal, BNZ will sell electricity to Ardagh Metal Packaging-Europe (AMP-Europe) over a 12-year contract, with an annual supply of around 146GWh from the deal’s start date in 2026. While BNZ did not specify from which projects the company would acquire electricity, the IPP currently has two projects in operation in Cádiz, Spain, with a combined capacity of 74MW.
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“Our collaboration with AMP-Europe demonstrates how a strategic alliance can have a significantly positive impact for all parties involved,” said BNZ managing director Luis Selva. “This VPPA not only strengthens our presence in Portugal, one of our key markets, but also contributes to our shared commitment with AMP-Europe to promote decarbonisation and move towards a more sustainable future.”
The signing of its first VPPA is an important milestone for BNZ, which has a number of plans in place to expand its portfolio. The company secured €680 million (US$741 million) in financing to ramp up project construction work in Italy, Portugal and Spain this week, and raised funds from the European Investment Bank (EIB) to add 700MW of new solar capacity in September.
The IPP commissioned its first solar project this year and said that it plans to commission its first project in northern Portugal “soon”. By 2026, BNZ plans to have around 1.7GW of capacity in operation.
These plans follow the Spanish government’s order to build 25GW of new solar PV capacity in the country in July, a significant investment even for a country as keen to embrace solar power as Spain. However, with Spain having endured negative energy prices earlier this year, investment in adjacent technologies, such as storage, will be essential for the country’s long-term future.
