Iberdrola Wins Major Contract to Power Spain’s Road Network and Drive Energy Efficiency

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Iberdrola has secured a major energy contract to power Spain’s road network. The electric utility will light the country’s principal motorways after winning the public tender for electricity supply to the State Road Network for the upcoming year, with an option to extend for an additional year, at a maximum budget of 29 million euros before tax (rising to 35 million with VAT). The company confirmed these terms.

Iberdrola will deliver lighting for all national highways, dual carriageways, and conventional roads owned by the state. In total, more than 1,600 power supply points will be distributed along over 26,400 kilometers of major routes that carry a large share of the nation’s traffic, including two thirds of heavy traffic, with an annual consumption of 150,000 megawatt hours.

Fixed electricity pricing

The Directorate General of Roads, part of the Ministry of Transport, which is led by Oscar Puente, awarded the large energy supply contract for national roads to Iberdrola. The deal guarantees a fixed energy price, a choice that helps stabilize budgets amid energy market volatility, according to statements from the utility led by Ignacio Sanchez Galan.

The company has been responsible for the energy supply of the state road network since June 1 and will continue for one year with an option to renew for another twelve months. The contract is part of a framework agreement for the electricity supply across the General State Administration.

State plan for energy efficiency

The Ministry of Transport and Sustainable Mobility recently approved the Energy Efficiency Strategy for cutting electricity use and emissions from the State Road Network by 50 percent by 2030. The plan contemplates investments totaling 457 million euros to boost efficiency and reduce dependence on fossil fuels through modern systems and a sustainable transformation of the vehicle fleet.

The ministry plans to modernize the current road lighting system, including tunnels and open-air sections, replacing high-pressure sodium luminaires with LED lighting and introducing smart lighting management to adjust illumination based on the presence of vehicles or pedestrians and on weather conditions. Several modernization projects are already in formulation, prioritizing those to be funded with European Recovery and Resilience funds.

Government estimates suggest these measures will outperform traditional sodium vapor lighting, delivering energy savings of 50 to 80 percent. The road network currently consumes about 146,000 MWh annually, with tunnels accounting for 73 percent of that usage, resulting in an annual electricity bill between 30 and 40 million euros.

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