ENDESA : Enel Green Power España starts construction of 35 mw wind farm supported by power purchase agreement between BBVA with Endesa

Endesa's renewable energy subsidiary, Enel Green Power España (EGPE), started construction of its 35 MW Primoral wind farm, located in Villamayor de Gállego, Zaragoza, which will involve an investment of around 34 million euros.

The new facility is supported by a long-term Power Purchase Agreement (PPA) signed last year between Endesa and the banking group BBVA. The Primoral wind farm will cover 30% of the energy needs of BBVA's corporate buildings and branch network in Spain, while Endesa will provide the remaining 70% through green certificates.

The new wind farm, which will be operated and maintained by EGPE, is expected to come online by the end of 2019 and will consist of 10 wind turbines with a capacity of 3.4 MW each. Once fully operational, Primoral will be able to generate around 108 GWh per year, avoiding the annual emission of approximately 75,000 tonnes of CO₂ into the atmosphere.

Climate Objectives

The PPA is part of BBVA Group's participation in the RE100 initiative, through which it has committed to cover 100% of its global energy needs with renewable energies. The agreement is also in line with the banking group's 2025 Commitment, which includes the objective of reducing the Group's CO₂ emissions by 68%, equivalent to up to 90,000 tonnes. Another goal is to use 70% of renewable energies by 2025 and 100% by 2030, thus responding to BBVA's adherence to the RE100 initiative, through which leading companies in the fight against climate change commit themselves to reaching this percentage by 2050.

The annual energy consumption of the banking group in Spain amounts to 220 GWh in 2018, equivalent to the annual consumption of 67,500 homes or all homes in the province of Soria, all of which is supplied by Endesa, at a fixed price and with a guarantee of origin.

The Power Purchase Agreement increases the commitment to environmental sustainability, while boosting cost savings. In the case of BBVA, the bank will pay a fixed price for the electricity supplied by the wind farm, offering annual savings of approximately 10%.

In Mexico, BBVA has a PPA in place with Enel Green Power, the global renewable energy business line of Enel, the Group Endesa belongs to, covering 65% of the power consumed by the bank.

Endesa's Projects in Aragon

This new wind farm in Aragon joins the eleven other wind farms that EGPE is building in this autonomous community of Spain, for a total capacity of over 400 MW and an annual generation capacity of around 1,300 GWh, avoiding the annual emission of around 896,000 tonnes of CO₂ into the atmosphere.

Specifically, six are located in the province of Teruel: Muniesa, Farlán, San Pedro de Alacón, Allueva, Sierra Pelarda and Sierra Costera I and six in the province of Zaragoza: Campoliva I, El Campo, Santo Domingo de Luna, Loma Gorda, Campoliva II and Primoral. All are expected to come into operation in late 2019.

Out of these wind farms being built in Aragon, 10 are part of the 540 MW[1] awarded to EGPE in May 2017, which also include facilities to be built in Andalusia, Castile-Léon, Castile-La Mancha and Galicia. EGPE has also started building in Extremadura and Murcia the 339 MW of solar capacity awarded at the government's third auction in July 2017.

The construction of the wind (540 MW) and solar (339 MW) capacity awarded in these two auctions involves an investment of over 800 million euros between now and 2020. The additional 879 MW will increase the capacity of EGPE's current renewable energy assets by 52.4%.

EGPE is using a variety of innovative tools and methods to build its wind farms, including drones for topographic surveys, smart tracking of the wind turbine components and advanced digital platforms and software solutions to monitor and provide remote support for site activities and commissioning the wind farms. These tools and solutions will facilitate the rapid gathering of accurate and reliable data on the construction activities, enhancing overall building quality and communications between on- and off-site teams.

In addition, EGPE is employing the 'Sustainable Construction Site' model for these projects, which includes the use of solar panels at each site to cover part of their energy needs, and water saving measures such as the installation of water tanks and rainwater collection systems. Upon completion of the construction works, the solar panels and water saving systems will be donated to the towns hosting the projects for public use.

Endesa currently manages over 6,553 MW of renewable capacity in Spain, of which 4,710 MW come from large hydropower. The remaining approx. 1,843 MW are operated by Endesa's renewable company Enel Green Power España and consist of 1,750 MW from wind, 79 MW from mini-hydro and 14 MW from other renewable energy sources.

Enel Green Power is the global renewable energy business line of Enel, the Group Endesa belongs to. The company is dedicated to the development and operation of renewables across the world, with a presence in Europe, the Americas, Asia, Africa and Oceania. Enel Green Power is a global leader in the green energy sector with a managed capacity of over 43 GW across a generation mix that includes wind, solar, geothermal and hydropower, and is pioneering the integration of innovative technologies in renewable power plants.

BBVA is a global financial group founded in 1857 with a customer-oriented focus. It is a leader in the Spanish market, is the largest financial institution in Mexico and has leading franchisee locations throughout South America and the Sun Belt in the US. Furthermore, it is the leading shareholder in BBVA Garanti, in Turkey. Its purpose is to make the opportunities provided by this new era available to everybody. This purpose is structured around the real needs of its customers: provide the best solutions and help them to take the best financial decisions, as part of an easy and convenient experience. The Bank is founded on strong values: the customer comes first, we think big and we are all one team. Its responsible banking model aspires to achieve a more inclusive and sustainable company.

[1] Campoliva II and Primoral are not included.