Iberdrola announces a partnership with Norges Bank Investment Management for more than 2 billion euros of co-investment in Spain and Portugal
Iberdrola and the Norwegian sovereign wealth fund, managed by Norges Bank Investment Management, have announced a co-investment of more than 2 billion euros in Spain and Portugal over the next three years. The companies are adding more than 1,300 MW of additional renewable capacity - 674 MW are signed up now and the rest will be included in the coming months - to their agreement signed last year, bringing the total to 2,600 MW.
Of the new capacity - the 674 MW of renewables - 40% is wind and 60% is photovoltaic on the Iberian Peninsula. In addition, the alliance will have an additional 643.5 MW of solar capacity in operation and under development on an exclusive basis.
Both companies are joining forces 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.
Iberdrola's chairman, Ignacio Galán, announced the investment at the World Economic Forum in Davos. "Today we are signing a global alliance to further advance the development of renewables in the Iberian Peninsula in a faster, more consolidated and competitive way. We believe that agreements of this kind allow us to combine our clean energy expertise and financial strength with those of Norges Bank Investment Management, a leading partner, with whom we have already been working for several years," said the chairman.
Under the terms of the agreement, the valuation of 100% of the 674 MW now being added amounts to 627 million euros, not including extra margins for the management of the assets, provision of operation and maintenance services, as well as other corporate services.
Nicolai Tangen, CEO of Norges Bank Investment Management, said: "We are very pleased to announce this important new agreement with our great partner Iberdrola. It gives us more critical mass in Spain and is also our first step into Portugal. We look forward to adding more attractive renewable infrastructure projects in the future".
This renewable portfolio will have the capacity to power more than 400,000 homes each year, resulting in 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 1.4 trillion euros 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:
- 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 to expand transmission networks in Brazil for 430 million euros.
- Last March, the electricity company signed an alliance with Norges Bank Investment Management for 1,265 MW of renewable energy in Spain.
- The company has signed an agreement to sell more than 8,400 MW of combined cycle gas plants in Mexico for 6 billion dollars.
- Iberdrola and MAPFRE have made further progress in their strategic alliance by incorporating 150 new MW through a joint venture, which already has 450 MW.
- 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.
- 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.