Solarpack has closed a power purchase agreement (PPA) with Shell Energy Europe Limited, with a duration of around 10 years. The project is being financed with €38 million from BBVA.

Solarpack will supply Shell with 105 gigawatt hours (GWh) a year of clean energy for 10 years starting in June 2024. The energy will be generated by a 54 MWp solar photovoltaic project located in Cañada Alta, Murcia. The project will generate the equivalent energy to meet the annual electricity needs of around 37,000 Spanish homes and will employ around 170 people during its construction. It is estimated that it will produce enough clean energy to avoid around 75,000 tonnes of CO2 emissions a year which would have been generated through non-renewable power supply.

“This operation further reinforces our presence in Spain, one of the biggest solar energy markets in Europe, and is in line with our strategic plan to achieve 5 GW of installed capacity by 2026,” says Iván Nieto, Solarpack’s Sales Director.

“BBVA’s support for the Solarpack project forms part of our commitment to sustainability and our special support for sectors linked to renewable energy. Our objective is to accompany our clients and society in the process of transitioning towards production models that are more respectful of the environment,” says Fernando Alonso, Corporate and Business director for BBVA in Spain.

Tom Summers, Vice President for Shell Energy Europe Limitied, said: “We are delighted to have signed this agreement with Solarpack on a project which will assist Europe’s transition to a lower-carbon energy system. Shell Energy Europe’s focus on delivering renewable power solutions for customers enables the development and access to the market for more renewable energy projects.”

“Both the agreement with Shell and BBVA's support in financing this type of project give Solarpack a new impetus to continue with the company's ambitious growth plan and demonstrate once again Solarpack's strong commitment to sustainability and, in particular, to environmental, social and good governance factors which are a strategic priority within all of the company's activities," said Luis Alvargonzalez, Solarpack's CFO.

This contract extends Solarpack’s presence in Spain, a key growth market for the company. The deal will extend its capacity to a total of 14,156 MW worldwide.