Europe’s largest solar power plant launched in west of Spain

Iberdrola SA launched Europe's largest solar power plant in western Spain

Bloomberg reports.

As noted in the publication, the country is increasing renewable energy production to reduce dependence on fossil fuels.

It is reported that electricity in Spain is traded almost three times more expensive than the seasonal average for five years.

After all,t the reduction of russian gas supplies leads to an increase in fuel costs.

As one of the sunniest European countries, Spain is betting on increasing solar energy production.

It will reduce its dependence on volatile commodity markets while helping to clean up the energy balance.

As the company said, the station in the Extremadura region, which includes about 1.5 million solar panels, will produce enough electricity to supply more than 334,000 homes.

It is noted that the solar power plant is already connected to the grid and will gradually increase production until it is operating at total capacity within the next four weeks.

"This one plant will unlikely have an impact on power prices," said Kesavarthiniy Savarimuthu, an analyst at researcher BloombergNEF. "But if Spain continues to scale renewables on track to meet its 2030 targets, power prices will come down."

In the short term, Iberdrola's power-purchase agreements with business customers, including Danone SA, Bayer AG, and PepsiCo Inc., will help shield them from fluctuating market prices.

By the decade's end, Spain plans to get almost three-quarters of its electricity from renewable sources, up from about 47% last year.

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