Iberdrola, Europe's leading electricity company, has finalized the details of a groundbreaking strategic alliance with Norges Bank Investment Management, the sovereign fund of Norway. This collaboration aims to co-invest in a massive 1,265 megawatts (MW) of new renewable energy capacity in Spain, with 20% dedicated to wind power and 80% to solar energy.
In compliance with all legal requirements, both Iberdrola and Norges Bank Investment Management have informed the National Securities Market Commission about their partnership. The primary objective of this strategic alliance is to expedite the decarbonization efforts in Spain while potentially extending its scope to other countries in the future. Under the agreement, Iberdrola will maintain a majority stake of 51% in the renewable assets.
The combined valuation of this impressive portfolio stands at approximately €1.2 billion. Iberdrola will assume control and management of these assets, offering operation and maintenance services, as well as other corporate support. However, the two companies are already working towards expanding this partnership by over 500 MW of additional renewable energy in the Iberian Peninsula.
Presently, 137 MW of the total capacity is already operational in Castilla-La Mancha and Aragon, while the rest of the projects are in various stages of development. These projects are spread across Andalusia (358 MW), Extremadura (343 MW), Aragon (175 MW), Castilla y León (102 MW), Madrid (55 MW), Murcia (50 MW), and Castilla-La Mancha (45 MW). When completed, this robust portfolio will have the capacity to meet the annual electricity demands of over 700,000 households.
Norges Bank Investment Management, with approximately €1.4 trillion in assets under management, oversees Norway's sovereign wealth fund and holds stakes in over 9,000 companies worldwide. It boasts an average ownership of 1.4% in all listed companies globally and 2.5% in European listed companies.
Moreover, Norges Bank Investment Management has been a prominent shareholder of Iberdrola, holding a stake of more than 3% for over seven years. Leveraging this longstanding relationship, the fund has decided to make its first direct investment in Spanish renewable assets, recognizing Iberdrola as the ideal partner in this endeavor.
The alliance between Iberdrola and Norges Bank Investment Management brings together two highly esteemed partners and opens up opportunities for future collaborations in renewable energy across different regions.
Iberdrola and Norway's Sovereign Fund Forge Strategic Alliance to Boost Renewable Energy in Spain
