Iberdrola sells clean energy to Salzgitter and electrifies German industry
Iberdrola continues to advance in its commitment to the electrification of industry through clean technologies and long-term strategic agreements. The company has commissioned a 65-megawatt peak (MWp) photovoltaic plant in Schadewohl (Saxony-Anhalt, Germany) to supply renewable energy to the steel company Salzgitter AG. In this way, it is contributing to the decarbonisation of the steel sector, one of the most energy-intensive industries.
The facility has more than 92,000 solar panels and will produce around 60 gigawatt hours (GWh) per year, enough to supply more than 20,000 homes (around 40,000 people) and avoid the emission of 23,000 tonnes of CO₂ per year. All the electricity will be used for green steel production.
The project is part of a 15-year long-term power purchase agreement (PPA) between Iberdrola and Salzgitter AG to supply 900 GWh during the period. The initiative demonstrates how electrification and strategic alliances are key to driving the decarbonisation of heavy industry.
Construction was carried out in several phases with the collaboration of specialised companies such as Solarpro, P&Q and EMT, as well as local companies, which benefits the economy and job creation in the region.
Leader in the PPA market
Power purchase agreements (PPAs) are essential for promoting the use of electricity in large industries, as they guarantee security of supply and price stability. Iberdrola leads the European PPA market and has agreements in Spain, Portugal, Germany, Italy, the United Kingdom, the United States, Brazil and Australia, backed by its wind (onshore and offshore) and photovoltaic portfolio and its generation mix, which ensures supply at competitive prices.