Iberdrola And Gestamp Sign 10-Year Renewable Power Deal To Supply 660,000 MWh To European Plants

Iberdrola and Gestamp have entered into a long-term renewable energy partnership through a 10-year Power Purchase Agreement that will supply 660,000 megawatt-hours of clean electricity to several Gestamp production plants across Europe. The agreement brings together Iberdrola and Gestamp, strengthening their shared commitment to a more sustainable industrial model driven by electrification and energy efficiency.

Under the terms of the PPA, Gestamp will receive power generated from 34 megawatts of installed renewable capacity, with the energy mix consisting of 80% wind power and 20% solar, all backed by certificates of origin. This supply structure will allow Gestamp’s European facilities to operate using 100% renewable electricity, ensuring stable, long-term energy costs at a fixed and competitive price. For the company, the agreement represents another step forward in its efforts to reduce emissions across the automotive value chain and enhance the sustainability of its production processes.

Gestamp’s Chief Purchasing Officer, Javier Imaz, emphasized that the partnership marks a key milestone in the company’s sustainability roadmap, pointing to its focus on electrification, improved energy efficiency, and expanded use of renewable sources as part of its broader decarbonisation goals.

For Iberdrola, the PPA reinforces its position as a strategic supplier of clean energy to heavy industry and maintains its leadership in the European PPA market—an achievement highlighted in the Pexapark Renewables Market Outlook 2026 report. The company continues to use long-term contracts to build enduring industrial partnerships while supporting the broader electrification of European manufacturing.

The energy group has already secured multiple long-term agreements in Spain’s automotive sector alone, including deals signed in 2026 that cover 50 megawatts of renewable capacity and supply one million megawatt-hours of clean electricity over a decade. According to David Martínez, Director of Customer Business at Iberdrola España, the newly announced agreement with Gestamp strengthens efforts to support sustainable industrial growth and contributes to a more self-sufficient, competitive, and resilient energy system capable of meeting rising demand.

Together, the companies aim to accelerate the transition to low-carbon manufacturing, improve renewable integration across industrial operations, and reinforce Europe’s shift toward cleaner and more reliable energy sources.