Masdar, the renewable energy company from the United Arab Emirates, is seeking further opportunities in Europe's green energy market, considering both minority investments and controlling stakes, according to its CFO. This follows a recent deal with Spain's Endesa.
Last week, Masdar agreed to pay €817 million ($887 million) for a 49.99% stake in 48 solar plants controlled by Endesa, a unit of Italy's Enel, in Spain. These plants have a combined capacity of 2 gigawatts.
The need to meet Europe's ambitious green targets, along with the normalization of asset prices previously inflated during low interest rates, presents significant opportunities in the region, Mazin Khan told Reuters.
Masdar has invested in renewable projects worldwide, with an overall capacity of roughly 20 GW and a value of over $30 billion. The company expects Europe to be a key contributor to its goal of reaching a 100-GW capacity by 2030.
“Whether we do that with partners… or with a majority stake, will depend on the opportunity and the jurisdiction,” said Khan. He noted that the stake in Endesa's assets is just a first step to expand investments. “When we look at M&A opportunities, we're not solely looking at them to add gigawatts to our portfolio… We're also putting a lot of emphasis on future pipelines and how we are effectively going to use those acquisitions to further expand within the region.”
Masdar and Endesa have also signed a memorandum of understanding to potentially develop an additional 3 GW of solar capacity. With high interest rates and rising debt costs affecting Europe's renewable industry, utilities like Iberdrola and Enel are more cautious about new renewable projects and are willing to sell minority stakes in wind farms and solar plants to maximize returns and reduce debt.
Last month, Masdar, controlled by UAE's power and water firm TAQA, its national oil company ADNOC, and the sovereign wealth fund Mubadala Investment Company, agreed to buy a majority stake in Greek renewable energy company Terna.
While Spain and Europe are central to Masdar's strategy, the company is open to suitable opportunities worldwide, including the United States, which is already a major market for Masdar.
