Iberdrola puts Arcos power plant and solar and wind portfolio up for sale

Iberdrola has hired Deutsche Bank to put on the market a portfolio of 2,400 MW in Spain. The transaction, valued at around 700 million euros, would involve, as this newspaper has learned, the sale of the Arcos de la Frontera combined cycle power plant (1,600 MW) as well as a portfolio of 300 MW of wind power in operation and 500 MW of photovoltaic projects.

The operation, reported yesterday by Reuters, joins the sale process that the company is also maintaining of stakes in offshore wind farms or the intention of incorporating a partner to its renewable business in the United States.

The company is considering divesting part of its subsidiary Avangrid Renewables to finance its growth and reduce its debt level.

According to the company's strategic plan, the utility aims to invest 4.3 billion euros in renewables in the country, a figure close to what the company could obtain from the sale of a minority stake in this business, which is already the third largest renewables operator in the US and the leader in offshore wind energy development.

The company has 8,309 MW in operation in 20 states and would represent another step in the company's divestment plans that began last year with the sale of a small private grid in the UK and continued later with a portfolio of renewable projects in Spain to Norges. The company plans to make these sales to accelerate the installation of renewables and strengthen its growth.

Increased self-consumption

On the other hand, Sabic and Iberdrola have requested a license from the City Council of Cartagena for the installation of a photovoltaic plant for self-consumption in the facilities of La Aljorra, which could become the largest in the world, as already reported by elEconomista.

The new renewable facility will have an installed capacity of 100 megawatts (MW), a high voltage line of 132 kilowatts and will consist of 263,000 solar modules. The agreement includes the signing of a pioneering long-term renewable energy purchase and sale agreement, under which the energy company will supply green electricity to the multinational petrochemical company's industrial plant for the next 25 years.