- Iberdrola will have a majority stake of 51% in the assets
- Iberdrola received a noteworthy €300 million allocation from the International Finance Corporation (IFC), the World Bank’s private sector investment arm
Iberdrola and the sovereign wealth fund of Norway, managed by Norges Bank Investment Management, have unveiled their strategies to fund more than €2 billion (US$2.17 billion) to add 1.3GW of renewables in Spain and Portugal over the next two to three years.
Altogether, 674MW of solar and wind capacity was in development; the rest will be included in the coming months. Solar accounted for 60%, or about 404MW, of the capacity in the development stage. Wind accounted for 40% or about 270MW of the capacity.
Iberdrola said final negotiations on exclusivity were also taking place, including an additional 643.5MW of operational and under-development solar PV capacity to the development plan.
Iberdrola will have a majority stake of 51% in the assets. Under the terms of the agreement, the valuation of the 674MW capacity amounted to €627 million.
In the future, the agreement could be extended to other countries.
Norges Bank Investment Management CEO Nicolai Tangen said: “The agreement gives us more critical mass in Spain and is also our first step into Portugal.”
Norges Bank Investment Management has a 3% stake in Iberdrola, prompting a strategic decision to embark on its inaugural direct investment in renewable energy assets within Spain, collaborating closely with Iberdrola.
In a joint announcement in June 2023, Iberdrola and Norway’s sovereign wealth fund unveiled their intention to invest in a substantial 1.3GW of renewable energy capacity in Spain. Significantly, solar PV projects constitute a majority, amounting to 80% of the total capacity.
In parallel, Iberdrola received a noteworthy €300 million allocation from the International Finance Corporation (IFC), the World Bank’s private sector investment arm. These funds are earmarked for developing renewable energy initiatives in nations heavily reliant on coal, including Morocco, Vietnam, and Poland. Notably, Iberdrola has already allocated €170 million from this funding to finance onshore wind projects, specifically in Poland.