Iberdrola & Amazon's Growing Energy Partnership in Iberia

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Sergio Hernández de Deza, VP Global Corporate Customers PPA and Decarbonisation at Iberdrola and Lindsay McQuade, Director of Energy for EMEA at Amazon at one of Iberdrola's wind farm facilities
Iberdrola & Amazon expand their renewable energy partnership with new PPAs in Portugal and Spain while leveraging AWS Cloud for digital transformation

Amazon, the world's largest online retailer, is also the world's largest purchaser of renewable energy.

This has been the case for five years now, with Amazon's procurement team investing heavily in wind and solar projects in more than 600 locations globally.

Naturally, as one of the world's largest companies, Amazon is a huge consumer of energy, and its investments in renewables are securing the future sustainability of its operations, including its fulfilment centres, corporate offices and data centres.

Iberdrola, Europe's largest provider of renewable power two years running, has provided Amazon with access to clean energy for several years.

Now, the two corporate giants have signed a series of new PPAs which will see Iberdrola supply Amazon with an additional 476MW of energy, year on year.

What is a PPA?
  • A Power Purchase Agreement (PPA) is a long-term contract between an energy producer and a buyer, typically a corporation or utility, for the supply of renewable electricity at a fixed price. PPAs help developers secure financing for new projects while allowing buyers to hedge against energy price volatility and meet sustainability goals.
Amazon is the world's largest purchaser of renewable energy | Credit: Amazon

The details of the deal

Amazon's first PPA in Portugal will see the technology giant purchase 219 MW from the Tâmega Wind Complex, the country's largest wind farm, set to begin construction in early 2025.

The project is part of Iberdrola's wider green hybridisation initiative, which seeks to maximise existing grid infrastructure.

Iberdrola has committed approximately €350m (US$359m) to the Tâmega development, which will supply power equivalent to the annual consumption of 128,000 homes and create more than 700 jobs at peak construction.

In Spain, Amazon has contracted 212 MW from the Ciudad Rodrigo solar PV plant in Salamanca and 45 MW from the Valdemoro wind farm in Burgos.

These projects will contribute to Amazon's goal of matching its electricity consumption with 100% renewable energy, a key milestone in its net zero commitment.

The Ciudad Rodrigo project, with an Iberdrola investment of nearly €200m (US$205m), will generate enough clean energy for 150,000 homes while providing more than 800 jobs during peak construction.

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As part of its local engagement strategy, Iberdrola has pledged to help restore the Plaza Amayuelas town square in Ciudad Rodrigo.

Aitor Moso Raigoso, Executive Vice President Customer Business at Iberdrola, highlights the importance of the collaboration.

“With Amazon we have a partnership that truly matches our own commitment to develop sustainable energy and drive the energy transition forward around the world,” Aitor explains.

“With Iberdrola’s extensive global portfolio of renewables, we are continually seeking to expand such partnerships to accelerate decarbonisation and support businesses in reaching their climate goals.”

Aitor Moso Raigoso, Executive Vice President Customer Business at Iberdrola | Credit: Iberdrola

A two-way street: How Iberdrola will use Amazon Cloud technology to boost digitalisation

Beyond renewable energy, Iberdrola has been increasing its reliance on Amazon Web Services (AWS) to improve operational efficiency.

In August 2024, the company designated AWS as its preferred cloud provider for Gen AI.

This move has allowed Iberdrola to enhance its wind farm design process by simulating wake effects and optimising turbine layouts using high-performance computing.

AWS's cloud solutions are also helping Iberdrola improve weather forecasting for its 400 wind farms worldwide.

The company is deploying a Virtual Desktop as a Service platform, powered by AWS's Amazon WorkSpaces, to streamline employee access to critical applications.

Iberdrola's transition to AWS extends to the AWS Spain Region, enabling the migration of further workloads and increasing the company's operational agility.

“Amazon is committed to driving the carbon-free energy transition forward, both to advance our Climate Pledge goals and support Europe's transition to more sustainable energy sources,” says  Lindsay McQuade, Director of Energy for EMEA at Amazon.

“We are excited to further support Iberdrola in its growth plans, leveraging the scalability and services of AWS in data and AI.”

Lindsay McQuade, Director of Energy for EMEA at Amazon, shaking hands with Ignacio Sánchez Gálan, Chairman of Iberdrola | Credit: Amazon

The road ahead

The Iberdrola-Amazon partnership is a shining example of how corporate alliances can help to kickstart major progress in renewable energy development, whilst also harnessing digital technologies to optimise energy consumption.

With Iberdrola continuing to scale its renewable portfolio and Amazon advancing its cloud and AI capabilities, both companies are set to benefit from one another's expertise for the foreseeable future.​​​​​​​

Matt Garman, Senior Vice President of Sales, Marketing and Global Services at AWS | Credit: Amazon

As Iberdrola expands its footprint across Europe and beyond, further agreements with corporate buyers are likely to follow.

Meanwhile, Amazon's energy procurement strategy suggests it will continue to set the pace for corporate sustainability initiatives, pushing its suppliers and partners towards a greener future.

“Iberdrola and AWS believe that innovation is key to achieving our sustainability goals and accelerating the world’s energy transition,” says Matt Garman, Senior Vice President of Sales, Marketing and Global Services at AWS.


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