January 24 (Renewables Now) - Spanish utility Iberdrola SA (BME:IBE) is mulling over the potential divestment of a stake in its US renewable energy business as it seeks to cut debt and bankroll plans for new investments, sources in the know have told Bloomberg.
The Spanish group’s renewable energy operations in the US are housed in Avangrid Renewables LLC, part of its US-headquartered unit Avangrid Inc (NYSE:AGR). The renewable energy firm says on its website it has over 7.3 GW of owned and controlled wind and solar power assets spread across over 20 states.
According to insiders that spoke to Reuters, Iberdrola has hired an unspecified bank to assist it with the possible sale. The plan is allegedly in a preliminary phase but considerations are ongoing.
The potential deal would align with Iberdrola’s strategy to lower its indebtedness via asset rotation and the sale of stakes in certain businesses. The initiative would back the company’s EUR-47-billion spending plans for renewables and power grids in 2023-2025 and help it reach its goal of having 52 GW of total installed clean power capacity by the end of the planning period.
Last week, Iberdrola unveiled an agreement to sell a 49% interest in its 1,265-MW wind and solar portfolio in Spain to Norges Bank Investment Management (NBIM), the manager of Norway’s sovereign wealth fund. Before that, it arranged the sale of a 49% stake in the Wikinger offshore wind farm in Germany to Swiss infrastructure investor Energy Infrastructure Partners (EIP).