Masdar and Endesa are partnering for a renewable energy project in Spain, having struck a deal for 2.5 gigawatts (GW) of renewable energy assets.
Subject to regulatory approvals and other conditions, the transaction would see Masdar invest €817 million to acquire a 49.99 per cent stake, with an enterprise value of €1.7 billion.
The portfolio Masdar plans to acquire consists of 48 operational solar plants of 2GW aggregated capacity.
Endesa, a subsidiary of Enel, and Masdar also aim to add 0.5GW of battery energy storage system (BESS) to the projects.
For the deal, Masdar retained BNPP as its transaction advisor, Linklaters as legal advisor, UL as its technical advisor, PwC as its tax advisor, and PexaPark as its PPA advisor.
The acquisition was partially funded through acquisition financing from BNPP, Santander, Intesa, ADCB, FAB and SMBC, while lenders were advised by Ashurst.
In addition to the acquisition Share Purchase Agreement (SPA), Masdar and Endesa have signed a Memorandum of Understanding (MoU) to explore an alliance to jointly develop renewable energy projects in Spain.
Elsewhere in Spain, Masdar also has the Almenara 1.2GW solar photovoltaic (PV) project in its portfolio. Located in the Castilla la Mancha region, the project is currently under development.
Last year, the country’s total installed power reached 125.6 GW, with renewables constituting 61.3 per cent of this total.
Renewable energy generation grew by 15.1 per cent, which brought the share of renewables in Spain’s total production to an all-time high of 50.3 per cent in 2023, compared to 42.2 per cent a year prior, according to REE.
Indeed, 2023 was found to be the year that broke renewable energy records globally. That said, the International Renewable Energy Agency recently outlined that this is still far from enough, and efforts must ramp up significantly, with renewables capacity required to grow at a minimum 16.4 per cent rate annually through 2030.