Masdar to acquire 49.99% stake in 2.5GW Spanish renewable energy portfolio

Masdar (Abu Dhabi Future Energy Company) has signed an agreement to acquire a 49.99 per cent stake in 2.5 gigawatts (GW) of renewable energy assets in Spain from Endesa, subject to regulatory approvals and other conditions.

Endesa is a subsidiary of Italy’s Enel.

The clean energy giant will invest EUR817m in the transaction, which values the portfolio at EUR1.7bn, making it one of Spain’s largest renewable energy deals.

The portfolio includes 48 operational solar plants with a combined capacity of 2GW. Masdar and Endesa plan to add 0.5GW of battery energy storage system (BESS) to these projects.

Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, chairman of Masdar and COP28 president, said, “This partnership underscores our commitment to unlocking clean energy capacity in Spain, Europe, and globally, supporting the COP28 UAE Consensus to triple renewable energy capacity by 2030. Masdar is accelerating its ambitious growth plans as we target 100GW of renewable energy capacity by the end of the decade.”

Masdar supports energy transition in Europe

The acquisition supports Spain’s National Energy and Climate Plan (NECP) and the EU’s net zero by 2050 targets.

In addition to the Share Purchase Agreement (SPA), the entities have signed a memorandum of understanding (MoU) to explore a strategic alliance for developing further renewable energy projects in Spain.

Flavio Cattaneo, CEO of Enel Group, stated, “We are pleased to start this partnership with Masdar and look forward to similar transactions in other regions.”

This deal aligns with Masdar’s ambitious growth strategy in Europe. Recently, Masdar announced an agreement to acquire 67 per cent of Greece’s TERNA ENERGY, pending regulatory approvals.

TERNA ENERGY aims to achieve 6GW of renewable energy capacity by 2030.

In March, the UAE-based clean energy giant and Spain’s Iberdrola closed on the 476MW Baltic Eagle offshore wind project in Germany’s Baltic Sea.

Mohamed Jameel Al Ramahi, CEO of Masdar, commented, “This strategic partnership with Endesa for 2.5GW of solar and battery storage assets significantly advances our growth plans in one of Europe’s largest renewables markets. This deal supports Spain and the EU in achieving their net-zero goals. We are also delighted to sign an MoU with Endesa for future solar projects.”

The company’s existing projects in Spain include the Almenara 1.2GW solar photovoltaic (PV) development in Castilla la Mancha.

The acquisition is partially funded by acquisition financing from BNPP, Santander, Intesa, ADCB, FAB, and SMBC, with lenders advised by Ashurst.

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