Iberdrola to provide renewable power to Italian retailer Selex

Spanish utility Iberdrola has entered a power purchase agreement (PPA) with Italian grocery retail group Selex Gruppo Commerciale (Selex Group) for a total of 1,250GWh of clean energy.

The supplies will come from 77MW of solar photovoltaic (PV) capacity, beginning in July next year.

This partnership is seen as a significant move towards improving competitiveness and speed of the electrification in Italy, with projections indicating a decrease of around 37,000 tons (t) in annual carbon emissions.

Selex Group consists of 18 affiliated companies and manages 3,331 retail outlets in various formats, from hypermarkets to discount stores.

Its brands include ‘Famila’, ‘A&O’, and ‘C+C’, along with regional brands. The group employs over 42,600 individuals.

The latest agreement features a unique contractual structure that allows for the distribution of energy among the various associated companies within the group, incorporating shared contractual terms.

Iberdrola said that its involvement supports Selex Group in achieving its decarbonisation goals.

The establishment of this agreement highlights the role of PPAs in the decarbonisation strategies of Italian industries, helping manage the risks associated with energy price fluctuations in the medium term.

Selex has welcomed the agreement, noting that it enhances the existing synergies among the associated companies regarding energy supply.

The group has identified the need for a long-term approach to stabilise energy costs and combat sustainability challenges.

This agreement further solidifies Iberdrola’s presence in the Italian PPA market, where it already has established contracts with industrial entities such as BTicino, Bayer, Acciaierie Venete, and other large-scale distribution groups for the provision of green energy from PV installations in Italy.