As per the terms of the agreement, the valuation of 100% of the portfolio of assets amounts to about €1.2bn
Iberdrola and Norges Bank join forces for Spanish renewable investments. (Credit: Iberdrola, S.A.)
Iberdrola has finalised the details of its strategic alliance with the sovereign fund of Norway, managed by Norges Bank Investment Management, to co-invest in 1.26GW of new renewable capacity in Spain, of which 20% will be wind and 80% will be solar.
Both companies have informed the National Securities Market Commission (CNMV) that they have obtained all the legal requirements to carry out the alliance.
The strategic alliance is designed to accelerate decarbonisation in Spain and could be extended to other geographies in the future. Iberdrola will have a majority stake of 51% in the assets. According to the terms of the agreement, the valuation of 100% of this portfolio of assets amounts to about €1.2bn.
Iberdrola will control and manage the assets, providing operation and maintenance services and other corporate services. However, both companies are already working on expanding this strategic alliance by more than 500 additional renewable MW in the Iberian Peninsula.
Of the 1,265 MW, 137 MW are operational in Castilla-La Mancha and Aragon, with the rest of the projects under development. These projects are located in Andalusia (358 MW), Extremadura (343 MW), Aragon (175 MW), Castilla y León (102 MW), Madrid (55 MW), Murcia (50 MW) and Castilla La Mancha (45 MW). This renewable energy portfolio will have the capacity to meet the equivalent electricity demands of more than 700,000 homes each year.
Norges Bank Investment Management, which manages Norway’s sovereign wealth fund, has approximately €1.4 trillion of assets under management and stakes in more than 9,000 companies. It owns on average 1.4% of all listed companies in the world and 2.5% of all listed companies in Europe.
Norges Bank Investment Management is also one of the main shareholders of Iberdrola, with a stake of more than 3% for more than seven years. As a result of this relationship, Norges Bank Investment Management has decided to make its first direct investment in renewable assets in Spain with Iberdrola, the largest European electricity company by capitalization.
The alliance between Iberdrola and Norges Bank Investment Management brings together two preferred partners in an agreement that could be extended to additional renewable opportunities in other geographies.