Renantis signs 10-year power purchase agreement with Merck for wind farms in Spain

Milan, 2 November 2023 – Renantis has announced the signing of a 10-year Power Purchase Agreement (PPA) with Merck, a leading science and technology company. Merck will be the corporate off-taker for the energy from two of Renantis’ onshore wind farms under development in Spain upon their completion.

Once in operation, the wind farms, located in the province of León, in North-West Spain, are expected to produce a combined 128 GWh of electricity annually, equivalent to the energy needs of around 40,000 households*.

The contract confirms Merck’s role as off-taker for 75% of the electricity produced by the wind farms which will contribute to Merck’s ambitious climate goals. By 2030, the company aims to cover 80% of its worldwide purchased electricity from renewable sources. Merck intends to achieve climate-neutral operations throughout its entire value chain by 2040.

“We are delighted to sign this new PPA in Spain where we have 109 MW installed between wind and solar and a pipeline of around 800 MW. As responsible pioneers in the renewable energy sector, we are proud to contribute to Merck’s decarbonisation objectives with our clean energy. At the same time, we are pleased to boost our business in Spain, always putting local communities and local development at the centre of our commitment, in the province of León as in other areas where we develop renewable energy projects”, commented Luigi Sacco, Head of PPA Origination of Renantis.

Laurent Villiers, Associate Director for Sites Services and Energy Procurement Europe at Merck, said: “Merck is pleased to contribute to the development of new wind energy capacity in Europe, in line with our sustainability goals. The joint initiative with Renantis will enable our company to significantly reduce its carbon footprint in the long term.”

The Ucedo and Porqueros wind farms, which will have a combined expected capacity of 50 MW, are under development and are expected to reach commercial operation in Q4 2025.

When in operation, the projects could benefit from the programmes for local communities aligned with the principles of Renantis’ Sustainability Charter. Among them, the Community Benefit Scheme, through which the Group supports local social and cultural development activities. The Student Support Scheme will sponsor young professionals in areas, such as León, to create local talent and local growth, and crowdfunding initiatives will give local communities the opportunity to invest in the renewable projects. In collaboration with local organisations and institutions, Renantis will help protect local crops and local agricultural production within the area of the León project and it will fund community climate actions.

Altenex Energy (DBA Edison Energy in the U.S.) worked with Merck on this agreement, facilitating the VPPA process and providing support in contract analysis and negotiation.

* Calculated based on an energy consumption per household of 3,272 kWh/year (REE data, year 2022).