The Vigo operation of Stellantis is shaping the future of the auto industry in Galicia by laying out the key questions that will define a new era for manufacturing, logistics, and energy use. An engineer from the firm opened a discussion about how the industry is shifting toward electric vehicles, emphasizing the importance of flexible workforce planning, cost optimization through continuous improvement, and strengthening the region’s competitive edge. The talk also highlighted a push to increase energy autonomy. The Balaídos plant aims to become a model in this respect. In addition to the solar installations announced previously, management hopes to integrate power from nearby wind farms so that all consumption is sourced from renewables. Negotiations are already advanced with several providers, with the group giving cautious approval in the near term.
As stated during a speech at CTAG headquarters, Stellantis people argue that reducing energy costs and pursuing self-supply through renewable energy have evolved into a competitive factor not just across countries but between Stellantis plants. For example, a car produced at the Kénitra plant in Morocco consumes significantly less energy than at Vigo, underscoring the energy efficiency challenge that the Vigo site faces.
Within the group, leadership remains focused on cutting costs wherever possible, and energy strategy has become the current battleground for Balaídos. Last September, it was reported that a sizeable solar installation, 27,000 photovoltaic modules, was bringing in roughly 14% of the plant’s energy needs. The project involved an investment exceeding 12 million euros with Prosolia Energy to generate about 23.7 GWh per year of decarbonized electricity. Now the plan is to extend the strategy to wind power as the next major step.
Reconstructive imagery shows photovoltaic modules at Stellantis Vigo, illustrating the ongoing transition toward cleaner energy solutions.
Stellantis Vigo is in advanced discussions to sign a power purchase agreement, or PPA, with a sector player. This would let the factory buy energy from a mill park or a set of mills over a defined period. A similar approach has been pursued by the plant in Figueruelas, with the caveat that Vigo plans to develop four mills on its own land under Prosolia Energy management, investing in and consuming the energy for an extended period. This model reflects Stellantis’ broader energy strategy.
Industry insiders note that the current market is highly dynamic, and the horizon for negotiated PPAs is typically in the 5- to 15-year range, with 10 years becoming a common target. Prices hinge on the guarantee of origin for green electricity, specifically whether the energy is certified as fully renewable. When green origin is confirmed, the price can be higher by roughly 50 euros per megawatt for a 10-year deal; without such certification, the price tends to be closer to 60 euros per MW.
Recent bid ranges run from about 40.2 euros to 64 euros per MW, though final terms depend on the role of any intermediaries in the deal. Energy security is a central pillar of Stellantis’ Dare Forward 2030 plan, which sets a course to cut the carbon footprint of the value chain by half by 2030 and to reach net-zero CO2 emissions by 2038. The company has positioned these milestones as essential to long-term competitiveness and resilience.
plans
Although talks between Stellantis Vigo and potential partners are well advanced, formal approval from the parent company remains essential for next steps. The leadership continues to push for lower energy costs, including access to government aid designed for energy-intensive sectors, though the current framework has not yet fully captured the plant’s needs across all operations such as dyehouse processing.
The Balaídos administration is urging the government to implement a framework that makes the 450 million points of aid approved by the end of 2022 accessible. The industry ministry recently announced changes intended to widen eligible sectors based on the national activity classification, where automotive manufacturing is still being reviewed. The sentiment among Stellantis Vigo observers is that securing support will be challenging, but persistence remains the stance as energy affordability remains critical for the plant’s competitiveness.
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