UAE’s Masdar acquires Brookfield’s Saeta Yield for $1.4bn

UAE’s Masdar, also known as Abu Dhabi Future Energy Company, said on Tuesday it had reached an agreement to acquire green energy firm Saeta Yield from Canada’s Brookfield in a deal valued at $1.4bn (EUR1.2bn).

The deal consists of a portfolio of 745 megawatts (MW) of predominantly wind assets – 538 MW in Spain, 144 MW in Portugal and 63 MW solar PV assets in Spain. It also includes a 1.6 gigawatt (GW) development pipeline.

However, it does not include 350MW of concentrated solar thermal plants controlled by Saeta and will remain under Brookfield’s control.

“The deal demonstrates Masdar’s commitment to accelerating the energy transition in Spain, Portugal and Europe and advances its growth plans in the region as it targets a global capacity of 100GW by 2030,” the Abu Dhabi clean energy firm said in a statement.

The deal is Masdar’s second big green energy deal in recent months in Spain, one of Europe’s largest wind and solar markets. It follows the agreement to buy a minority stake in 48 solar plants controlled by Endesa – a unit of Italy’s Enel EUR817m.

“With an operating capacity of 745 MW of predominantly wind assets and a 1.6 GW development pipeline in Spain and Portugal, Saeta is a perfect complement to Masdar’s portfolio in Europe, following our recent partnership with Endesa for 2.5 GW of solar energy,” said Mohamed Jameel Al Ramahi, CEO of Masdar.

“This deal consolidates our footprint in the Iberian market by acquiring a well-established renewable platform, with a strong operational portfolio and management team, and tangible near-term and long-term growth opportunities.”

The transaction is set to be closed around the end of the year, subject to customary approvals.

Masdar’s European portfolio

Meanwhile, Masdar, which is controlled by TAQA, ADNOC and sovereign wealth fund Mubadala, is seeking more opportunities in Europe’s green energy sector and will consider both minority investments and controlling stakes

The company agreed to pay $887m (EUR817m) for a 49.99 per cent stake in 48 solar plants controlled by Endesa in June. The plants have an overall capacity of 2GW.

Earlier in March, the clean energy firm closed the acquisition of a 49 per cent stake in RWE’s $13.9bn (GBP11bn) UK Dogger Bank South offshore wind farm – one of the world’s largest offshore wind farms.

The 3 GW wind farm is expected to generate enough electricity to power three million homes and create 2,000 jobs during construction and an additional 1,000 during the operational phase.

Masdar has invested in renewable projects around the world at different stages of development, with an overall capacity of roughly 20 GW and a value of more than $30bn. The company expects Europe to be a key contributor to reaching its 100 GW capacity target by 2030.

Read: Masdar’s Spanish solar farm deal heralds more European investments