Norwegian Sovereign Fund to Invest in 1,265 MW RE Capacity of Iberdrola

Iberdrola has said that the Spanish multinational utility has entered into an alliance with Norway’s sovereign wealth fund, to invest in 1,265 MW of new renewables capacity in Spain. According to the terms of the agreement, the valuation of 100% of the assets in the portfolio amounts to approximately EUR 1.2 billion.

The Norwegian fund is managed by Norges Bank Investment Management. Iberdrola informed in its official statement that of the total capacity, 20% will come from wind and 80% from solar PV. Iberdrola will have a majority stake of 51% in the assets and Norwegian fund will have the rest 49%.

Iberdrola will control and manage the assets, providing operations and maintenance services, as well as other corporate services. Iberdrola said that both companies are joining forces to accelerate decarbonization in Spain initially and the agreement could be extended to other countries in the future.

Of the 1,265 MW total capacity, currently 137 MW are operational in Castilla-La Mancha and Aragón. The rest are being developed in Andalusia (358 MW), Extremadura (343 MW), Aragón (175 MW), Castilla y León (102 MW), Madrid (55 MW), Murcia (50 MW) and Castilla La Marcha (45 MW).

Iberdrola said that the renewable energy portfolio will have the capacity to meet the electricity demands of more than 700,000 households each year.

Norges Bank Investment Management, which manages Norway’s sovereign wealth fund, has around EUR1.4 trillion of assets under management and is the largest single investor in global equities. It has stakes in more than 9,000 companies.

The management is also one of main shareholders in Iberdrola, retaining a stake of more than 3% for over seven years.  Building on this longstanding relationship, Norges Bank Investment Management has taken the decision to make its first direct investment in renewables assets in Spain, forming an alliance with the leading European electricity company by capitalization.