Iberdrola has signed a Power Purchase Agreement (PPA) with Selex Gruppo Commerciale to supply 1,250 GWh of renewable electricity in Italy. Starting in July 2026, Selex will receive 125 GWh per year from a photovoltaic installation with 77 MW of capacity.
The deal, structured as a framework agreement, allows electricity to be allocated among various companies within the Selex Group under the same contractual terms, providing flexibility while ensuring long-term supply security
The Innovative PPA Structure between Iberdrola and Selex
For Selex, the contract extends beyond a hedge against energy market volatility. By securing a stable flow of solar electricity, the group not only mitigates exposure to fluctuating wholesale prices but also advances its decarbonisation commitments.
The shift will avoid around 37,000 tonnes of CO₂ emissions annually, an impact comparable to planting 1.5 million trees. These figures highlight the growing role of PPAs as tools not only for cost control but also for corporate sustainability commitments.
What makes this contract particularly notable is its framework design. Instead of being tied to a single offtaker, the arrangement allows multiple companies in the Selex Group to participate under a uniform contractual structure. This reduces administrative complexity while spreading risk, aligning with a broader European trend in which industrial groups pool demand to secure renewable electricity at scale, such as the recent PPA between Google and Copenhagen Infrastructure Partners for the provision of 250MW Wind Power in the Netherlands.
Selex Group and the Strategic Value of the Agreement
Selex Gruppo Commerciale is one of Italy’s largest distribution cooperatives, comprising over 2,300 sales outlets and employing more than 41,000 people across the country. Its portfolio includes well-known retail brands operating in the food and consumer goods sectors, making energy reliability and cost stability central to its operations.
The PPA will support Selex in stabilising part of its electricity costs over the medium and long term. As the group noted, the signing of this agreement demonstrates how PPAs are becoming key instruments in the decarbonisation strategy of Italian industries, providing protection against energy price volatility while reinforcing sustainability commitments.
The innovative, long-term structure of the deal allows Selex’s associated companies to address cost management and environmental objectives in a more coordinated and effective way.
Iberdrola’s Expanding Role in the European PPA Market
For Iberdrola, this agreement adds to its growing portfolio of PPAs across Europe and reinforces its footprint in the Italian market, which has seen increased activity in the renewable energy sector, such as the recent partnership between Saipem and Divento to explore floating wind projects in Italy.
Known also for its EPC contracting capabilities in the energy sector, the company has been steadily expanding its renewable energy presence in Italy, where demand for long-term green electricity contracts continues to rise.
Across Europe, Iberdrola has positioned itself as a leading renewable energy supplier for corporate clients, structuring PPAs that combine competitive pricing with decarbonisation benefits. The Selex deal highlights Iberdrola’s ability to deliver flexible contract models tailored to industrial groups, supporting the transition to cleaner energy while strengthening its position in one of Europe’s most dynamic PPA markets.
