Iberdrola (multinational electric utility) and Gonvarri Industries (industrial manufacturer) have entered into a decade-long Power Purchase Agreement to supply renewable electricity to eight of the steel and metal solutions company's production facilities spread across four European countries, marking another expansion of the Spanish energy group's long-term industrial supply portfolio.

Agreement Structure and Energy Mix

The signed Power Purchase Agreement commits Iberdrola to delivering 26,000 MWh of electricity per year to Gonvarri Industries' European manufacturing sites over a ten-year term. The deal includes guarantees of origin covering 100% of the electricity consumed at those facilities.

The energy supplied under the agreement will be drawn from a mix of renewable sources, with approximately 80% generated by wind farms and the remaining 20% coming from solar photovoltaic installations.

The supply is supported by 15 MW of installed renewable capacity from Iberdrola. The specific European countries involved were not individually identified in the announcement beyond the reference to four nations hosting eight production facilities.

Industrial Decarbonization Goals

For Gonvarri Industries, the agreement is framed as a central element of its broader sustainability strategy. The multinational metal solutions company said the deal will allow it to advance the electrification of its production processes while working to reduce the Group's overall carbon footprint.

Josu Calvo, CEO of Gonvarri Industries, described the agreement as a meaningful step forward, stating that it enables the company to advance the electrification of its production processes through renewable energy while continuing to decarbonize its industrial operations.

The partnership underscores what both companies characterized as the growing importance of long-term supply agreements in helping industrial operators secure access to reliable, European-sourced renewable energy at stable and predictable prices.

The ability to lock in pricing over a ten-year horizon is positioned by both parties as a mechanism not only for environmental compliance but for operational and financial planning certainty.

Iberdrola's Position in the European PPA Market

For Iberdrola, the deal adds to what the company described as an expanding portfolio of long-term supply contracts with major industrial customers across Europe and beyond. According to the Pexapark Renewables Market Outlook 2026 report cited by Iberdrola, the company holds the position of leading company in the European PPA market for the third consecutive year.

Iberdrola's existing PPA agreements span multiple continents, with contracts in place in Spain, Portugal, Germany, Italy, the United Kingdom, the United States, Brazil, and Australia.

The company's supply portfolio draws on a range of generation technologies including onshore wind, offshore wind, solar and other sources, which it says allows it to offer competitive and reliable energy to industrial clients.

David Martínez, Head of Customer Business at Iberdrola España, said partnerships of this kind help strengthen the stability and competitiveness of the industry by providing long-term certainty around a sustainable and secure energy supply. He added that PPAs are a key tool for encouraging investment, supporting industrial activity, and advancing the electrification of the economy.

Broader Strategic Context

The agreement sits within Iberdrola's stated strategy to accelerate industrial electrification and build durable partnerships with large-scale energy consumers. The company has framed this approach as contributing to a more secure, efficient, and sustainable energy system capable of meeting growing demand as industries across Europe move toward lower-carbon operations.

For Gonvarri Industries, which operates as a multinational in the metal solutions sector, the partnership extends the company's commitment to electrification and renewable energy across its European footprint.

The company said the deal is expected to help improve efficiency across operations while securing a stable and competitive energy supply for its production sites.

The signing reflects a wider trend in European industry, where manufacturers are increasingly turning to long-term bilateral energy agreements as a way to manage both price exposure and sustainability commitments simultaneously, rather than relying solely on spot market purchases or short-term supply arrangements.

Powering Your Pipeline: Power Sector Intelligence Across Europe

How much revenue is slipping through the gaps simply because your team lacks visibility into the right Power projects at the right time? Across Europe, the pace of power infrastructure investment is accelerating, and the organizations winning contracts are the ones with the clearest, most current picture of the market.

The Global Project Tracking (GPT) platform by Blackridge Research was built to close that visibility gap. From renewable energy rollouts to water treatment upgrades and grid modernization programs, it delivers structured, reliable project intelligence that helps Power businesses make faster, better-informed decisions.

Whether you are a contractor, supplier, or consultant operating across Europe, staying ahead of the project lifecycle means more than just monitoring the news. You need a single, consolidated source that covers every stage of development.

• Upcoming Projects

• Tender Notices

• Contract Awards

• Projects Under Construction

• Completed Projects

See how the Global Project Tracking (GPT) platform by Blackridge Research can sharpen your competitive edge in the European Power sector. Book a Free Demo with our team today.