The EDP Group and Calidad Pascual sign the first power purchase agreement (PPA)

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The EDP Group and Calidad Pascual sign the first power purchase agreement (PPA)

Tuesday 25, July 2017

The EDP Group and Calidad Pascual sign the first power purchase agreement (PPA) in Spain

EDPR will become the first wind power producer to sell energy to the end client through its energy marketing company. This agreement will see EDPR supply wind energy to Calidad Pascual over the next 5 years. Last year, EDP certified that 99% of the electricity consumed by Calidad Pascual was from renewable sources.

Madrid, 24 July 2017: The EDP Group and Calidad Pascual have signed a pioneering power purchase agreement (PPA) in the Spanish market.

The three-way agreement will allow Calidad Pascual to buy – through EDP’s energy marketing company – wind energy produced at wind farms owned by EDP Renewables (EDP Renewables, Euronext: EDPR), a global leader in the renewable energy sector and one of the world’s largest wind energy producers. This is the first PPA to be signed in Spain, making EDPR the first wind power producer to sell energy directly to the end client.

The agreement has a term of 5 years and will run from 1 January 2018 until 31 December 2023.

A power purchase agreement, or PPA, allows for the sale of electricity by a producer, in this case EDPR, directly to an end client – Calidad Pascual – at a fixed price over the long term. This enables the client to buy energy at a stable, attractive price and to plan ahead in terms of energy costs. It also means the consumer has greater visibility in terms of electricity prices beyond the standard market timescales.

It also allows Calidad Pascual to strengthen its sustainability commitments, becoming the first direct buyer of electricity sourced exclusively from wind farms in Spain. Thanks to this agreement, Calidad Pascual can offer transparent, verifiable guarantees that that the energy provided under this agreement is exclusively sourced from renewable wind farms.

Upon signing the agreement, David Casañ, COO at Calidad Pascual, said: “This agreement reflects our commitment to the use of renewable energy. Ninety-nine per cent of the energy we consume is now from renewable sources and we are working on improving that figure even further through innovative solutions and the efficient use of resources to enhance competitiveness and guarantee environmental sustainability”.

Rocío Sicre, Managing Director of EDPR in Spain, said: “We are immensely pleased with this agreement, which makes Calidad Pascual and EDPR pioneers in this type of initiative in Spain”.
Javier Flórez, EDP B2B Sales Director, added: “This agreement is a massive step forward for the Spanish market and shows that EDP is capable of delivering attractive, innovative solutions to its clients. This will undoubtedly lead to other organisations taking similar steps going forward”.

Lastly, Francisco Hevia, CSR and Communications Director, Calidad Pascual, said: “This agreement forms part of our Environmental Impact Plan to minimise our environmental footprint by making our manufacturing processes more efficient, especially in terms of the use of resources. One of our objectives for 2020 is to cut our electricity consumption by 20%”.
This contract strengthens the original agreement between EDP and Calidad Pascual, which dates back to 2005, to supply the company with energy and roll out various initiatives, which have positioned Calidad Pascual as an efficiency and sustainability leader.

A global trend
Although this is the first corporate PPA in Spain, these agreements are now a global trend. EDPR has partnered on PPAs with major companies like Bloomberg and Amazon Web Services, Inc. (AWS) in the US and Industrias Peñoles in Mexico.
These initiatives allow organisations to ensure the supply of renewable energy and meet their sustainability targets. It also supports the fight against climate change by certifying the source of the energy subject to these agreements.

| About Calidad Pascual |
Calidad Pascual, a family-owned company built on solid, unique values, is a leader in the food sector. The company was founded in 1969 in Aranda de Duero, Burgos, before quickly expanding across Spain. Today it exports to 67 countries. With a range of over 200 products, 6 plants, 27 regional branches and over 2,300 employees, its main business is the preparation, packaging, distribution and sale of milk and other dairy products under its Pascual brand, mineral water brand Bezoya, soya-based drinks Vivesoy, Bifrutas, Mocay Caffè and DiaBalance.
Calidad Pascual complements its portfolio with other value-added products thanks to partnerships with Idilia Foods (Cola Cao and Okey milkshakes), Unilever (Flora brand milk), Unicer (Agua Das Pedras Salgadas), Kellogg’s (cereals and Pringles), Heinz, Conservas Garavilla (Isabel), Borges (oils and vinegar) and La Zaragozana (Ambar).
Calidad Pascual’s products are enjoyed by an increasing number of consumers, who are offered a varied, top-quality product range, which is healthy too. Calidad Pascual’s principles are firmly rooted in providing quality, value-added products. We strive to exceed expectations every day for the wellbeing of our customers.
For further information, please visit www.calidadpascual.com

| About EDP Renewables (EDPR) |
EDP Renewables (Euronext: EDPR) is a global leader in the renewable energy sector and the world’s fourth-largest wind energy producer. With a sound development pipeline, first class assets and market-leading operating capacity, EDPR has undergone exceptional development in recent years and is currently present in 12 markets (Belgium, Brazil, Canada, France, Italy, Mexico, Poland, Portugal, Romania, Spain, the UK and the US). Energias de Portugal, S.A. (“EDP”), the principal shareholder of EDPR, is a global energy company and a leader in value creation, innovation and sustainability. EDP has been a Dow Jones Sustainability Index for eight consecutive years.
For further information, please visit www.edpr.com.

| About EDP |
EDP is an international energy group present in 14 countries. It is a leader in value creation, innovation and sustainability. It forms part of the Dow Jones Sustainability Indexes (World and STOXX) and is also a leader in renewable energy.
EDP is a leading player in the Spanish energy landscape, supplying over 3 million satisfied customers. EDP is involved in the generation, distribution and marketing of energy and services.
In the electricity distribution segment, EDP has the highest quality-of-service level in Spain.
In the energy marketing area, EDP can boast the most loyal and satisfied customers, as reflected in the ISCX 2016 customer experience survey. The company’s customer service centre is considered the best in Spain, with a gold rating.