Iberdrola and MAPFRE have created a new strategic alliance to make joint investments in renewable energies in Spain.
The utility and the insurance company have set up a pioneering co-investment vehicle to achieve their goals that includes 230MW of green projects, both wind and solar photovoltaic (PV), from the utility’s portfolio.
The agreement foresees adding more operating assets over time, as well as new renewable projects under development from the energy company’s pipeline, targeting 1GW.
MAPFRE is the majority shareholder in the vehicle with an 80% stake, while Iberdrola holds the remaining 20% and is responsible for developing, building and operating the wind farms.
The first 100MW of operational assets, located in Castilla y León, are split between two wind farms in Soria and Burgos.
The 130MW PV projects are being developed in Castilla-La Mancha, in the province of Guadalajara, and are expected to be commissioned in the third quarter of 2022.
Iberdrola said it had brought in a partner to develop its renewable growth plan and asset rotation strategy, while MAPFRE adds a global renewable energy leader to its sustainable investments in Spain.
To date, the insurance group was making all these investments in alternative assets through real estate, infrastructure and private capital funds.
At the end of last year, the Group completed its first infrastructure fund with Abante, raising €300m, and invested in Macquarie Infrastructure and Real Assets (MIRA) funds, the world’s leading infrastructure group.
Iberdrola chairman Ignacio Galán (pictured: left) said: The alliance illustrates the need to work together, with commitment and action, in order to lead the transition towards a low-carbon economy, drive re-industrialisation and create jobs in our country.
“This urgent strategy has the backing of the European Union and the International Energy Agency.
“In MAPRE we have found an ideal partner to drive investments and projects in the technologies of the future, enabling us to build a stronger, more competitive and sustainable economy for all.”
MAPFRE chairman Antonio Huertas (right) added: “This alliance between leaders allows us to grow together and, in our case, to continue diversifying our portfolio in a low-interest rate scenario while boosting investments with a positive impact on the environment.
“Meanwhile, we will move on with our commitment to energy efficiency as an instrument for green growth based on a low carbon economy.”