Iberdrola, the Spanish multinational electric utility company, has finalized negotiations with Norway's sovereign wealth fund to bolster their Iberian clean energy alliance with an additional 644MW of renewable energy capacity in Spain.
The newly added projects, all solar-based, are situated in Extremadura (328MW, already operational) and Castilla y Leon (316MW). This agreement, facilitated through Norges Bank Investment Management, the manager of Norway's sovereign wealth fund, brings the total capacity under development between Iberdrola and the fund to approximately 2500MW, with Iberdrola retaining a majority stake of 51% in the assets.
In January, both entities announced exclusive negotiations aimed at doubling the size of their existing partnership, which initially encompassed nearly 1300MW. With the recent agreement, an additional 644MW has been fully secured, building upon the initial 674MW added to the alliance.
Both solar projects included in the expansion have power purchase agreements (PPAs) in place for a portion of their production, providing stability and revenue predictability.
Moreover, the partners have indicated the potential for further expansion of the alliance into other countries, underscoring their commitment to advancing renewable energy initiatives on a global scale.
Norges Bank Investment Management, boasting assets under management of approximately €1.4tn and stakes in over 9000 companies worldwide, has maintained a long-standing partnership with Iberdrola, retaining a stake of 3% for more than seven years.
The initial expansion of the alliance last January, which incorporated nearly 700MW of assets in Portugal, underscores the ongoing collaboration between Iberdrola and Norges Bank Investment Management in advancing renewable energy infrastructure across the Iberian Peninsula and beyond.
