Masdar plugs into Spain’s solar boom with €368m move

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Abu Dhabi’s renewable energy giant Masdar has taken a major step in its European expansion, closing a €368m transaction with Spanish utility Endesa that secures 446 megawatts (MW) of operational solar power across the Iberian Peninsula.

The deal, announced Thursday, sees the UAE energy company acquire a 49.99 per cent stake in four solar photovoltaic (PV) plants from Enel Green Power España, a subsidiary of Endesa.

Masdar’s commitment includes €69m in equity investment, supported by €115m in acquisition financing. With this transaction, the company lifts its gross operational capacity in the Iberian Peninsula to 3.2 gigawatts (GW), underlining Spain’s growing role as Masdar’s European hub.

The agreement builds on an earlier milestone in 2024, when Masdar partnered with Endesa to acquire a 49.99 per cent share in 2 GW of solar assets – one of Spain’s largest renewable energy transactions in recent years. That deal also mapped out up to 0.5 GW of battery storage.

“This acquisition is aligned with Masdar’s broader global strategy to expand our renewable energy capacity and further demonstrates our long-term commitment to Europe,” said Mohamed Jameel Al Ramahi, CEO of Masdar.

“We are confident that further strengthening our partnership with Endesa through this deal will play a crucial role in the development of the Spanish renewable energy sector. As one of the most important energy transformation markets in Europe, Spain will continue to be a key focus for Masdar for years to come.”

Flavio Cattaneo, CEO of Enel Group, described the move as a mileston of the two firms’ partnership.

“We are pleased with the closing of this transaction which represents another milestone in Enel’s long-term partnership with Masdar. We look forward to continuing to work together in accelerating the energy transition,” he said in a statement.

Scaling presence in Spain

The deal comes less than a year after Masdar acquired Saeta Yield, a €1.2bn Iberian renewables platform with a 2.3 GW portfolio, which now serves as the company’s operational base in the region. Spain’s dynamic solar market, clear regulatory frameworks, and ambitious energy targets have made it a cornerstone of Masdar’s European growth strategy.

For Masdar, which is jointly owned by TAQA, ADNOC, and Mubadala, the latest acquisition reinforces a global push towards 100 GW of renewable capacity by 2030. The company has already built a presence in more than 40 countries with projects spanning solar, wind, battery storage and green hydrogen.

Spain, meanwhile, continues to be one of Europe’s most attractive renewables markets. Earlier this year, Masdar and Enel Group signed a memorandum of understanding to explore renewable opportunities across Spain, Italy and Germany.

Spain’s energy backdrop

Renewables generated a record 56 per cent of Spain’s electricity in 2024, according to national grid operator Red Eléctrica. Wind and solar contributed nearly half of the total, at 22 per cent and 21 per cent respectively, with nuclear supplying about 20 per cent. Fossil fuels provided the remainder, around 23 per cent, underscoring the scale of the country’s energy transition challenge.

This was highlighted in April this year, when a massive blackout swept across the Iberian Peninsula. Triggered by a cascade of grid imbalances, the outage left large parts of Spain and Portugal without electricity for several hours.