Iberdrola Partners with Gres Panaria for Solar Power

• Gres Panaria’s partnership with Iberdrola secures 92 GWh of green power, driving sustainability and cost stability in Portugal’s ceramic sector. A step towards a greener future!

Gres Panaria Portugal has signed a long-term power purchase agreement (PPA) with Spanish utility Iberdrola SA, securing 92 GWh of green electricity over a period of 10 years. Starting in 2025, the electricity will be sourced from Iberdrola's photovoltaic (PV) farms, although specific project details were not disclosed.

The deal aims to help Gres Panaria reduce its carbon footprint and stabilize its electricity costs amid fluctuating energy markets. Rui Afonso, managing director of Iberdrola Clientes Portugal, emphasized that this partnership aligns with both companies' commitment to sustainable development and the promotion of renewable energy, particularly in Portugal's ceramic industry.

How will the PPA with Iberdrola impact Gres Panaria's sustainability and energy costs?

• Enhanced Sustainability Credentials: Gres Panaria's PPA with Iberdrola will significantly bolster the company's sustainability profile. By committing to procurement of 92 GWh of green electricity, Gres Panaria is reinforcing its dedication to environmentally friendly practices, which can enhance brand reputation and appeal to eco-conscious consumers.
• Reduction of Carbon Footprint: The shift to renewable energy sourced from Iberdrola’s photovoltaic farms is expected to substantially cut Gres Panaria's greenhouse gas emissions. Transitioning to green electricity will contribute to the company meeting both domestic and international standards for sustainability, further supporting global climate goals.
• Stable Energy Costs: The long-term nature of the PPA provides Gres Panaria with a more predictable and stable pricing structure for electricity. This helps mitigate financial risks associated with volatile energy prices in the market, allowing for better budget planning and cost management.
• Financial Predictability: Securing a 10-year agreement allows Gres Panaria to forecast energy expenses more accurately over the next decade, aiding in long-term financial planning and investment strategies.
• Support for Local Renewable Infrastructure: By choosing to source energy from Iberdrola’s local photovoltaic farms, Gres Panaria is contributing to the development of renewable energy infrastructure in Portugal. This supports job creation and economic growth in the region while reinforcing the supply chain for renewable energy.
• Potential for Energy Independence: The transition to green energy through the PPA may also enhance Gres Panaria's energy independence. Reducing reliance on traditional fossil fuels can shield the company from geopolitical tensions and market fluctuations affecting conventional energy sources.
• Alignment with Industry Goals: This partnership supports broader sustainability goals within the ceramic industry, which has historically been energy-intensive. Gres Panaria can serve as a model for other companies in the sector, demonstrating that sustainability can be integrated into operational practices without compromising financial performance.
• Innovation and Technological Advancement: Engaging with a large utility like Iberdrola may open avenues for Gres Panaria to adopt further innovations, such as energy efficiency initiatives or investment in smart technologies that optimize energy consumption.
• Customer Engagement and Market Differentiation: Highlighting this PPA to customers can enhance Gres Panaria's market differentiation. By promoting sustainability initiatives, the company may attract a broader range of environmentally-conscious clients and establish partnerships with businesses prioritizing sustainable sourcing.
• Potential for Future Expansion: This collaboration sets the stage for future expansion of renewable energy partnerships, which could further enhance Gres Panaria's energy sustainability and open new avenues for innovation and improvement in production processes.