Iberdrola and the Norwegian sovereign wealth fund, managed by Norges Bank Investment Management, are to add 1300MW of additional renewable energy capacity to unlock a more than €2bn joint investment over the next three years.
So far 674MW of wind and solar has been added to the alliance, with the rest to be included in the coming months, to reach a total capacity of 2600MW.
The 674MW of new renewable energy capacity is in the development stage – 40% wind and 60% solar PV – across the Iberian Peninsula.
Final negotiations on exclusivity are also taking place on including an additional 643.5MW of operational and under development solar PV capacity to the alliance.
Both companies have joined forces to accelerate decarbonisation in the Iberian Peninsula, and the agreement could be extended in the future to other countries.
Iberdrola will have a majority stake of 51% in the assets.
The executive chairman of Iberdrola Ignacio Galán (pictured) said: “Today we have expanded our clean energy alliance to advance the development of renewables in the Iberian Peninsula in a faster, more consolidated and competitive way.
“Innovative agreements like this allow us to combine our knowledge in clean energy and our financial strength with those of Norges Bank Investment Management, a truly progressive partner, building on our alliance that has been growing for many years.”
Norges Bank Investment Management chief executive Nicolai Tangen added “We are really pleased to announce this new important deal with our great partner Iberdrola.
“It expands our footprint in Spain and is also our first step into Portugal. We look forward to adding more attractive renewable infrastructure projects going forward.”
Under the terms of the agreement, the valuation of 100% of the 674MW now incorporated amounts to €627m, Iberdrola said.
This figure excludes extra margins for asset management, provision of operation and maintenance services, as well as other corporate services.
This renewable portfolio will have the capacity to supply energy to more than 400,000 homes each year, resulting in more than 350,000 tonnes of CO2 avoided per year.
Norges Bank Investment Management, which manages Norway’s sovereign wealth fund, has assets under management of around €1.4tn and stakes in more than 9000 companies.
It owns on average 1.4% of all listed companies in the world and 2.5% of all listed companies in Europe.
Norges Bank Investment Management is also one of Iberdrola’s main shareholders, holding a stake of 3% for more than seven years.
As a result of this relationship, Norges Bank Investment Management has decided to make its first direct investment in renewable assets in Spain with Iberdrola.
Iberdrola and Norges Bank Investment Management have formed a secure alliance, which could be extended to additional renewable opportunities in other geographies.