Naturgy adds 900 MW to its renewable portfolio by purchasing assets from Ardian in Spain. The acquisition includes the possibility of repowering the wind installations at the end of the useful life of the farms, which on average are scheduled for 16 years’ time. The farms are located in areas with high wind resources and where the company already has both solar and wind projects.
* The operation was closed with an enterprise value of 650 million euros, which means an EV/EBITDA 2023E ratio of around 8.0x.
* Renewable boost in Spain and worldwide Naturgy currently has 88 renewable projects operating in Spain, totalling 2,300 MW.
* Naturgy recently received a favourable Environmental Impact Statement for 18 wind and photovoltaic projects in Spain, jointly representing over 1,300 MW of capacity.
Original Press Release:
May 16 -- Naturgy issued the following news release:
- The power company has acquired a 422 MW portfolio of wind farms already operating in Spain from the Ardian infrastructure fund, as well as hybridisation projects for the same plants totalling an additional 435 MW of solar power and in an advanced stage of development.
- This will help Naturgy boost its presence in the Spanish renewables market, where it currently has over 1,000 MW in construction, which will be operational by the end of 2024. To date, the company has more than 5.5 GW of renewable capacity in operation internationally, and a development portfolio of more than 195 projects in Spain, Australia and the United States.
- Naturgy Chairman & CEO, Francisco Reynés, emphasised that this acquisition “is an excellent strategic fit, complying with the investment parameters of our company and proving that financial discipline and inorganic growth are compatible for creating value. Adding these assets to our portfolio enables us to advance in our goal to be a relevant actor in the energy transition in our country”.
Today, Naturgy announced the acquisition of 100% of ASR Wind, which has a total of 422 MW in 12 wind farms operating in Spain. The transaction also includes a solar hybridisation pipeline of up to 435 MW in an advanced stage of development, with land and interconnection permits largely in place so that they will be mostly operational in 2025. The portfolio acquired also includes the possibility of repowering the wind installations at the end of the useful life of the farms, which on average are scheduled for 16 years’ time.
The wind projects acquired are located in Castile and León (5), Castile-La Mancha (3), Catalonia (2), Galicia (1) and Andalusia (1). The farms are located in areas with high wind resources and where the company already has both solar and wind projects, so the acquisition will generate operating synergies. No additional operating staff have been incorporated with the acquisition. Adding these new farms to the Naturgy portfolio will facilitate the availability of new wind power to reinforce green energy supply to Group customers.
The operation was closed with an enterprise value (EV) of 650 million euros, which means an EV/EBITDA 2023E ratio of around 8.0x.
The farms acquired from the Ardian infrastructure fund “are an excellent strategic fit, complying with the investment parameters of our company and proving that financial discipline and inorganic growth are compatible for creating value”, said Francisco Reynés. Naturgy’s Chairman & CEO highlighted the progress this operation represents for the Group’s commitment to renewable development in Spain and the continued promotion of the energy transition in our country.
Meanwhile, general manager for Renewables at Naturgy, Jorge Barredo, explained that “the immediate integration of these 12 farms allows us to complement our wind portfolio in operation in Spain, at locations with high wind resources, close to our own renewable generation assets and, therefore, with high operating synergies. This is an opportunity for growth that is fully in line with our growth strategy in Spain using proven renewable generation technologies”.
Renewable boost in Spain and worldwide
Naturgy currently has 88 renewable projects operating in Spain, totalling 2,300 MW. Specifically, it has 26 projects operating in Castile and León, 16 in Castile-La Mancha, 17 in Galicia, 6 in Andalusia and 4 in Catalonia, at locations close to those acquired from Ardian Infrastructure. This year, the company has added around 30 wind farms and photovoltaic plants in construction, the equivalent to over 1,000 MW of additional capacity, which are expected to begin operating at the end of 2024.
Naturgy recently received a favourable Environmental Impact Statement (EIS) for 18 wind and photovoltaic projects in Spain, jointly representing over 1,300 MW of capacity. The environmental green light for these developments confirms the company’s commitment to the energy transition and progress in its decarbonisation strategy. The projects with favourable environmental authorisation include the eight wind farms in Galicia and the Campo de Arañuelo (300 MW) photovoltaic plant in Extremadura, which will be the largest solar installation built by the company in Spain.
Outside Spain, Naturgy has over 3,000 MW of renewable capacity in operation. One of the priority renewable development countries is Australia, where the Group aims to achieve a total installed capacity of 2,200 MW of wind, photovoltaic and storage capacity in 2025. Recently, Naturgy successfully commissioned its first battery storage facility in the world, a historical milestone for the company in the renewables business.
[Category: Energy Equipment & Services, Real Estate Development, Renewable Electricity, M&A Activities, ESG, Divestiture]