Iberdrola sells half of its renewable mega-portfolio in Spain to Norwegian sovereign fund

Iberdrola and the Norwegian sovereign wealth fund seal a mega-alliance in renewables. The electricity company has signed the transfer to Norges Bank Investment Management of 49% of a portfolio of 1,265 MW (megawatts) of new green capacity in Spain, valued at 1.225 billion euros.

Both partners signed the agreement on Monday, after months of negotiation. The alliance means that Iberdrola will have a majority stake of 51% and will control and manage the assets, providing operation and maintenance services, among others, as the energy company informed the Spanish Securities and Exchange Commission (CNMV) on Tuesday.

The agreement has been valued by the power company as "a strategic alliance to co-invest" in the implementation of the aforementioned package of megawatts, consisting of 20% wind capacity and another 80% photovoltaic capacity, located in Spain.

Norges Bank, which in turn is a shareholder of Iberdrola with more than 3% of the capital of the parent company of the Spanish company, will hold the remaining 49% in this portfolio. The operation, reported by Expansión, is the first direct investment in renewable assets in the country and involves a disbursement by the Nordic fund of 600 million euros.

The distribution of the green mega-portfolio includes 137 MW operational in Castilla-La Mancha and Aragón, while the rest is under development in Andalusia (358 MW), Extremadura (343 MW), Aragón (175 MW), Castilla y León (102 MW), Madrid (55 MW), Murcia (50 MW), and Castilla-La Mancha (45 MW). This renewable capacity has the capacity to supply energy to more than 700,000 homes per year.