The move towards clean energy supply contracts is helping a growing number of organisations bring their sustainability ambitions to life. Renewable Power Purchase Agreements (PPAs) have become essential for companies looking to achieve ambitious decarbonisation goals while maintaining competitiveness.

Arup, in collaboration with legal advisors Watson Farley & Williams and Invesyde, advised leading Spanish telecoms firm Telefónica on the structuring, negotiation and signing of a long-term clean energy supply contract with Acciona. 

The PPA, the first long-term supply deal for Telefónica in Spain, will allow the company to lock-in a long-term, fixed-price renewable energy deal with a reliable supplier. Arup’s energy specialists worked alongside Telefónica from the outset to sound the market and define the PPA requirements that would best meet its consumption needs. Based on our insight into energy market trends, the team evaluated the incoming proposals, assessing  s their environmental, economic and legal dimensions. 

The 10-year agreement provides an annual supply of 100GWh of electricity from 100% renewable sources to power Telefónica’s office facilities, data processing centre and offices in Spain, eliminating about 26,000 tonnes of CO2 emissions per year. As well as supporting the UN’s Sustainable Development Goals, PPAs allow corporates to lock-in a long-term contract to purchase renewable energy from a specific supplier at an agreed price.