Industrial, Solar, Wind - October 10, 2022
Alcoa Signs PPA in Spain
Alcoa Corporation announced an additional PPA to support the future restart of the San Ciprián aluminum smelter in Spain.
This latest agreement is with Endesa, a subsidiary of the Enel Group. The agreement will provide power balancing services for the smelter load from 2024 to at least 2030.
Balancing services provide electricity to the smelter’s consumption point, either from baseload volumes from a power purchase agreement with Endesa, via other third-party agreements, or from the market directly.
The agreement with Endesa would include up to 131 MW beginning in the second half of 2025 and through 2033, representing slightly more than 30% of the smelter’s energy requirements at maximum capacity. The final volume and start of the baseload power deliveries can be adapted as the process to develop wind farms evolves. The pricing terms are confidential.
“This agreement demonstrates Alcoa’s efforts to find a viable solution for the San Ciprián smelter,” said Álvaro Dorado Baselga, Vice President Global Energy in Alcoa and President of Alcoa in Spain in a statement. “While the energy agreements represent important progress, the success of the smelter will depend on the development of a long-term competitive power framework in Spain and getting the permitting process approved for these wind farms.”