Ferrovial’s Milano Solar plant in Texas is set to supply renewable energy to Toyota’s US operations under a 15-year agreement covering more than 115 MW of solar power. The deal is intended to provide a steady source of renewable energy as the Japanese automaker shifts toward electric vehicles.
The Milano Solar project is scheduled to go live in September 2027. It will be built in Milam County and have nearly 204 MW of installed capacity. Ferrovial, a Spanish infrastructure company, will oversee the project from development through long-term operation. The plant is designed to generate about 450 GWh of electricity each year, enough to power roughly 43,000 US homes.
Toyota won’t take all the power. Arranged through energy broker Constellation, the deal secures just over half the plant’s output for Toyota Motor North America, or about 246,000 MWh of renewable energy per year. Toyota will receive renewable energy certificates (RECs) for the full contract period, not a direct supply of electricity to its facilities. This arrangement lets the company match its electricity use with new renewable generation even if the power does not reach its buildings. Renewable Energy Magazine reports that this approach is common among large corporate buyers in Texas, where deregulation makes such deals possible.
Long-term power purchase agreements like this are now standard in the US energy market. Texas leads the way, with rules that let large companies directly support new renewable projects. For Toyota, the contract is a basic part of its Eighth Environmental Action Plan for North America, which calls for 100% of its electricity to come from renewables through on-site solar alongside outside contracts and certificates. Sector reports note that Constellation has also signed a separate long-term PPA with Ferrovial to help finance Milano Solar.
Ferrovial is putting about $355 million into Milano Solar, including financing. Designed to run for 40 years, the plant fits the company’s strategy of creating long-lasting energy assets. Toyota already has major solar installations at its North American headquarters in Plano, Texas, and continues to add more as it prepares for a new wave of electric vehicles. pv magazine USA reports that Toyota recently signed another contract for 100 MW of solar energy from a project in Kentucky. Once these projects are complete, the company will have more than 150 MW of solar generation in the US.
US electricity demand is climbing as data centers and electric transport need more power, while new factories add to the pressure on companies to secure clean energy. Long-term contracts like Toyota’s guarantee renewable power and give developers the financial security to build large projects. Renewable Watch reports that Milano Solar is part of Ferrovial Energy’s broader push into the US energy market.
Toyota’s North American division wants all its facilities, from plants to offices, to run on renewable electricity by 2035. The company is combining direct solar investment with outside sourcing as it responds to the realities of the US energy market. Other automakers are making similar moves. Alpine, for example, is shifting toward electric sports cars, as reported earlier.
Texas has become a hotspot for utility-scale solar. Toyota’s 15-year commitment, rather than reliance on short-term certificates or on-site solar alone, reflects a long-term approach to risk and reputation. The project strengthens Ferrovial’s presence in US renewables, while Constellation’s role as an intermediary reflects the growing complexity of corporate energy buying.
