TotalEnergies signs 45 MW renewable PPA with Merck in Spain

By Global Infrastructure Sherpa · May 20, 2021

Ppa Solar signed Castilla La Mancha, Spain May 20, 2021

45 MW

Capacity

development

Stage

TotalEnergies and MSD, known as Merck & Co., have signed a 10-year renewable corporate power purchase agreement (CPPA) for 90 GWh a year of clean energy. The energy will be produced by a 45 MW utility-scale solar power project from TotalEnergies’ portfolio in Castilla La Mancha, Spain. This agreement supports Merck's goal to source 100% of its purchased electricity with renewables.

Deal Analysis

TotalEnergies' 45 MW renewable corporate power purchase agreement (CPPA) with MSD, known as Merck & Co., in Castilla La Mancha, Spain, signifies a growing trend of large corporations securing renewable energy to meet sustainability goals. The 10-year agreement for 90 GWh annually underscores the increasing demand for clean energy solutions from the pharmaceutical sector. This deal allows TotalEnergies to expand its renewable energy portfolio in Spain while providing a long-term revenue stream, and it enables Merck to progress towards its commitment to 100% renewable electricity sourcing. The CPPA demonstrates the viability of utility-scale solar projects in supporting corporate sustainability initiatives. The involvement of TotalEnergies, a major global energy company, and Merck, a leading pharmaceutical company, highlights the attractiveness of renewable energy PPAs for both energy producers and consumers. While the financial details remain undisclosed, the agreement's size and duration suggest a substantial investment in renewable energy infrastructure and a long-term commitment to sustainability. This deal could encourage similar collaborations between renewable energy developers and corporations seeking to reduce their carbon footprint.

45 MW solar PPA in Castilla La Mancha, Spain
10-year agreement for 90 GWh annually
Involves TotalEnergies as developer and Merck & Co. as offtaker
Supports Merck's goal of 100% renewable electricity

Market Context: The renewable energy sector in Spain is experiencing significant growth, driven by government policies and increasing corporate demand for clean energy. Corporate PPAs are becoming a common mechanism for companies to secure renewable energy and reduce their carbon footprint in the European market.