BBVA and Endesa have signed a bilateral, long-term green power purchase agreement (PPA). The agreement includes the construction of a new 80 GWh wind farm in Spain, to be available in 2020. Endesa’s renewable-energy unit, Enel Green Power Spain, will build and run the wind farm, and BBVA will buy the energy. The leading energy company in Spain will provide 30% of BBVA power needs through this wind farm, with the remaining 70% from traditional supply models (including green certification), for both the bank's corporate buildings and its network of branches.
“With this project we contribute to enlarge the installed capacity for renewable energy in Spain, which is critical for our country to meet its ambitious environmental goals,” said Ricardo Forcano, BBVA's Global Head of Talent and Culture.
“For Endesa this contract introduces very innovative service models that combine a competitive energy supply deal with the social and environmental goals of the client. This system is a new way to promote renewable energy as part of the decarbonization process of the economy, a process that Endesa is deeply involved in,” said Javie Uriarte, General Manager of Market Iberia.
BBVA recently joined the RE100 initiative with which it pledges that 100% of the worldwide energy it consumes will come from renewable energy sources. BBVA's 2025 Pledge includes the goal to reduce the Group's CO2 emissions by 68% to 90,000 tons.
The bank's annual energy consumption in Spain stands at 237 gigawatts (GWh), equivalent to the annual consumption of 67,600 homes or the total of all households in Spain's north-central province of Soria. Endesa provides and guarantees 100% of the energy at a fixed price.
Power purchase agreements represent a new consumption model that both enhances the commitment to environmental sustainability and enables energy savings. In BBVA's case, the bank will have a fixed price for electricity from the wind farm, which will translate into an annual savings of approximately 10 percent.
In Mexico, BBVA Bancomer has a PPA agreement with Enel Green Power, which as the case with Endesa, is part of the Enel Group. The agreement covers 80 percent of its energy consumption. And in the U.S. BBVA has a similar accord that provides 100% of the energy consumption.