Iberdrola And Selex Group Ink 1,250 GWh Renewable Energy Deal In Italy

Iberdrola and Selex Gruppo Commerciale have signed a long-term renewable energy purchase agreement, known as a Power Purchase Agreement (PPA), covering a total of 1,250 GWh of electricity. Under this agreement, Iberdrola will supply photovoltaic energy at a volume of 125 GWh per year, with a total capacity of 77 MW, starting from July 2026. The collaboration is a significant step for Italy’s industrial sector, as it contributes to greater competitiveness and accelerates the process of industrial electrification. The project is expected to reduce annual carbon dioxide emissions by approximately 37,000 tons, an impact equivalent to planting around 1.5 million trees.

Selex Gruppo Commerciale, the leading modern distribution group in Italy, brings together 18 affiliated companies and operates a commercial network of 3,331 retail outlets. Its store formats range from hypermarkets to discount stores, and its portfolio includes nationally recognized brands such as Famila, A&O, and C+C, along with strong regional brands that often lead local markets. The group employs over 42,600 people across Italy.

The agreement features an innovative contractual structure through a framework agreement that allows energy to be shared among Selex’s associated companies while maintaining consistent contractual terms. This structure not only supports Selex’s sustainability goals but also enables the group to stabilize part of its energy costs over the long term and manage energy price volatility more effectively. Selex has expressed satisfaction with the agreement, noting that it strengthens the existing synergies among its companies and provides a structured approach to addressing sustainability challenges.

For Iberdrola, this agreement further consolidates its position in the Italian PPA market, where it has already partnered with companies such as BTicino, Bayer, Acciaierie Venete, and other groups in the large-scale distribution segment to supply green energy from photovoltaic plants. At the European level, Iberdrola has been confirmed for the second consecutive year as the leader in the PPA market, according to Pexapark’s Renewables Market Outlook 2025, and has signed agreements with global companies including Amazon, Microsoft, Meta, Salzgitter, Mercedes-Benz, and Vodafone.

This partnership demonstrates how PPAs are increasingly being used as a strategic tool for industrial decarbonization in Italy. By securing long-term access to renewable energy, companies like Selex can advance their sustainability objectives, manage energy costs, and contribute to the country’s transition toward cleaner and more efficient industrial energy use.