Iberdrola and Norges Bank Expand Partnership to Develop 2.5 Gigawatts of Renewable Energy in Iberia

Iberdrola has expanded its alliance with Norges Bank Investment Management, adding an additional 644MW of renewable energy capacity in Spain.

The expanded partnership now encompasses around 2.5GW of projects under development in the Iberian region.

Under the new agreement, Norges Bank Investment Management will acquire a 49% stake in the renewable energy portfolio for €203 million, valuing the entire portfolio at around €414 million.

Iberdrola will retain the remaining 51% stake. The transaction will proceed without the need for external debt financing.

The new projects, exclusively solar, are situated in Extremadura (328MW, already operational) and Castilla y Leon (316MW). This expansion follows the initial 674MW partnership, which the two entities revealed negotiations to double in January.

Both solar projects have secured power purchase agreements for a portion of their energy output. The partners have indicated the potential to extend the alliance to other countries in the future.

In June 2023, Iberdrola finalized a deal with the fund to sell a 49% share in a Spanish renewable energy portfolio with a capacity of 1.26GW.

Additionally, the European Investment Bank has sanctioned a €700 million loan to support the expansion of Iberdrola’s electricity distribution network in Spain.

Iberdrola’s investment plan also includes the acquisition of an 18.4% stake in Avangrid for $2.5 billion.

Of the total €41 billion investment, €21.5 billion is earmarked for grid network expansion and reinforcement in the US, UK, Brazil, and Spain, with the US assets set to receive 35% of the total investment.

source: Iberdrola

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