The two firms will jointly develop the solar portfolio in Valladolid, in the autonomous community of Castilla y León, northern Spain. Elawan did not confirm how many projects comprise the 150MW nameplate capacity.
The deal will cover “nearly 90%” of Sandoz’ electricity consumption from its European operations, Elawan said.
Diego Garcia, head of revenue management and PPAs at Elawan, said the deal was a “significant milestone” for the company in its aim to become a “leading independent power producer (IPP) in Spain.”
Elawan was acquired by Japanese financial services group ORIX Corporation in late 2022, at which time it had around 1.2GW of active renewables capacity and just over 7GW under construction or in development. Most of its solar PV operations are clustered in Spain and France, as well as a presence in Texas where it recently inked a PPA with tech giant Google.
The European PPA market shrunk by 25% in the first half of 2025, according to data from Swiss market consultancy Pexapark. This was largely driven by price uncertainty and the potential for negative prices. May, in particular, saw a drastic drop to the lowest contracted capacity for any month since 2020.
Since 2024, the European PPA market has been shifting. LevelTen Energy said that prices fell last year and the style of PPA changed in response to an increase in negative pricing hours. Much of Europe’s negative pricing happens in Spain, where Elawan and Sandoz have signed their deal, partly due to the amount of solar PV on the Spanish grid.
