How to read a power purchase agreement

How much power did Amazon contract in Portugal? In its announcement of 3 February 2025, Iberdrola put the agreement at 219 MW. The same announcement gives a larger number for the Tâmega wind project as a whole.

Which figure belongs to the buyer?

A power purchase agreement (PPA) sets the terms on which a buyer purchases electricity. Iberdrola reported 219 megawatts (MW) under Amazon’s agreement and 274 MW of planned wind capacity at Tâmega. Use 219 MW when describing Amazon’s agreement and 274 MW when describing the project. Both figures measure capacity. Electricity delivered over time would be measured in megawatt-hours (MWh).

Can we calculate what Amazon agreed to pay?

Iberdrola estimated an investment of around €350 million in the wind project. That is the developer’s investment figure. The announcement gives no price per MWh for Amazon’s agreement. It does not establish how much Amazon will pay over the life of the contract.

What can you cite?

A sourced description would be “On 3 February 2025, Iberdrola announced a 219 MW agreement with Amazon at its planned 274 MW Tâmega wind project in Portugal.” The announcement documents the agreement. A claim about when the wind farm entered operation would need a later source.

Read Iberdrola’s 3 February 2025 announcement (PDF, pages 1–2). The opening identifies the agreements in Portugal and Spain. The breakdown on page 2 gives the Tâmega project figures.

Amazon’s announcement in Spanish gives the buyer’s account of the same agreement, including the contracted capacity and Iberdrola’s planned investment.