Iberdrola and Norges Bank Investment Management seal their exclusivity agreement, reaching 2,500 MW
Iberdrola and the Norwegian sovereign wealth fund, managed by Norges Bank Investment Management, have announced the addition of 644 MW of renewable energy capacity to the agreement between the two companies, bringing the total to 2,500 MW.
In January, the two companies announced that they were negotiating on an exclusive basis to add almost 1,300 MW - 674 MW were signed up that same month. Now they are adding the remaining 644 MW of renewables, which will be entirely photovoltaic projects in Spain, focused in Extremadura with 328 MW - already operational - and in Castilla y León, with 316 MW. Part of the production of these farms is sold through PPAs -long-term contracts-.
Both companies are increasing their commitment to accelerate decarbonisation in Spain, a project that could be extended to other countries in the future. Iberdrola will have a 51% majority stake in the assets.
This renewable portfolio will have the capacity to supply energy to more than 400,000 homes each year, which will mean more than 350,000 tonnes of CO2 avoided per year.
The perfect co-investment partner
Norges Bank Investment Management, which manages Norway's sovereign wealth fund, has assets under management of around EUR 1.4 trillion and stakes in more than 9,000 companies. It holds 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 a major shareholder in 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, Europe's largest electricity company by market capitalisation and the second largest in the world.
Iberdrola and Norges Bank Investment Management thus create a strong alliance between two preferred partners whose commitment could be extended to additional renewable opportunities in other geographies.
Alliances for growth
In recent months, the energy group has entered into a number of long-term partnerships to drive the decarbonisation of the economy:
- As mentioned above, the alliance with Norges was expanded last January by nearly 700 MW, with the inclusion in the alliance of assets in Portugal.
- Iberdrola in December closed a deal with Masdar to co-invest 15 billion in offshore wind and green hydrogen in Germany, the UK and the US, following the successful investment agreement announced in July to co-invest in the Baltic Eagle offshore wind farm.
- Last September it teamed up with GIC for the expansion of transmission grids in Brazil for 430 million euros.
- The company has sold more than 8,400 MW of combined cycle gas plants in Mexico for 6.2 billion dollars.
- Iberdrola and BP also signed a strategic alliance in March to deploy 11,700 fast-charging points in Spain and Portugal, and launched their joint venture on 1 December.
- Iberdrola and MAPFRE have continued to advance their strategic alliance by adding 150 new MW through a joint venture, which already has 450 MW.
- In January 2023, the electricity company signed an alliance with Norges Bank Investment Management for 1,265 MW of renewable energy in Spain.
- In addition, a few months ago Iberdrola signed an alliance with Energy Infrastructure Partners to co-invest in the Wikinger offshore wind farm and boost its offshore wind portfolio.
