Norway’s wealth fund buys 49% stake in Spanish renewables portfolio

NORWAY’S sovereign wealth fund has agreed to buy a 49 per cent stake in Spanish energy company Iberdola’s portfolio of renewable energy infrastructure for 600 million euros (S$858.9 million).

Norges Bank Investment Management (NBIM), which operates the US$1.3 trillion wealth fund, said that Iberdola would remain a co-owner and operator of the portfolio.

“The portfolio comprises seven solar plant projects and five onshore wind projects with an installed capacity of 1,265 megawatts, equivalent to the annual electricity consumption of 700,000 Spanish households,” NBIM said. It added that nine projects are currently under development, with completion expected between 2023 and 2025.

Iberdola said separately that the companies could extend the deal to other assets in Spain or elsewhere.

Spain aims to produce 67 per cent of its electricity from renewables by 2026. Power companies from around the world are investing in the country to build infrastructure towards that goal.

The transaction with NBIM is part of Iberdola’s plan to sell minority stakes in renewable developments to finance its climate action plan. The 150 billion euro plan, which extends to 2030, is mostly devoted to renewables and power grids.

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Iberdola also recently sold a 49 per cent stake in an offshore wind farm in Germany for 700 million euros. REUTERS