Masdar acquires nearly 50% stake in four solar energy plants from Spain’s Endesa

Deal adds 446 megawatts of gross operational solar PV capacity to Abu Dhabi company's portfolio

Deal is in line with Masdar’s broader global strategy to expand its renewable energy capacity. Photo: Masdar

Abu Dhabi clean energy company Masdar has completed its acquisition of a 49.99 per cent stake in a €368 million ($432 million) portfolio of four operational solar photovoltaic plants from Endesa in Spain, expanding its presence in Europe.

The transaction includes €69 million in equity by Masdar, with an additional €115 million of acquisition financing, the Abu Dhabi National Energy Company (Taqa), which has a stake in Masdar, said in a filing to the Abu Dhabi Securities Exchange on Thursday.

It adds 446 megawatts of gross operational solar PV capacity to Masdar’s portfolio. It also brings Masdar’s total gross operational capacity in the Iberian Peninsula to 3.2 gigawatts, with more than two gigawatts of development pipeline.

The deal was first announced in March.

It is in line with Masdar’s broader global strategy to expand its renewable energy capacity and “demonstrates our long-term commitment to Europe”, said chief executive Mohamed Al Ramahi.

“As one of the most important energy transformation markets in Europe, Spain will continue to be a key focus for Masdar for years to come,” he said.

In July last year, Masdar invested €817 million to acquire a nearly 50 per cent stake in Spanish utility Endesa's solar energy assets. The agreement, which has an enterprise value of €1.7 billion, included the Abu Dhabi company acquiring a portfolio of 48 operational solar plants of 2 gigawatts aggregated capacity from Endesa.

Masdar and Endesa – which is a subsidiary of Europe's largest electricity group Enel – said they also aimed to add 500 megawatts of battery energy storage system to the projects.

This year, Masdar and Enel also signed an initial pact to explore potential renewable energy opportunities in countries including Italy, Spain and Germany.

Masdar projects in pictures

Shams 1 Solar Power Station in Abu Dhabi's Al Dhafra region. Photo: Masdar

Shams 1 opened in 2013 and generates enough electricity to power tens of thousands of homes. Photo: Masdar

Shams uses 'parabolic trough' systems, meaning it directs heat on to liquid, which causes steam that then drives a turbine. Photo: Masdar

Dr Sultan Al Jaber announces the Shams 1 project back in 2010. Stephen Lock / The National

Cirata, a floating solar plant in Indonesia, expected to enter operation in 2022. Photo: Masdar

Masdar helped thousands of people in Afghanistan to access power though solar rooftop panels. Photo: Masdar

It was the first time thousands of Afghan people had an electricity supply. Photo: Masdar

Masdar's rooftop project in Afghanistan. Photo: Masdar

The London Array, the world's largest offshore wind farm in the Thames Estuary off the coast of the UK. Stephen Lock / The National

Another view of the London Array. Stephen Lock / The National

A model of Masdar City, which champions sustainable living. Pawan Singh / The National

The opening of Shams 1 in 2013. Silvia Razgova / The National

The Shams 1 plant was one of the first concentrated solar power plants in the region. Christopher Pike / The National

Irena's headquarters in Masdar City, Abu Dhabi. Wam

Dr Al Jaber is leading the charge to a greener tomorrow. Mona Al Marzooqi / The National

Masdar, jointly owned by Taqa, Adnoc and Mubadala, has developed projects in more than 40 countries with a combined capacity of more than 51 gigawatts.

The company's global ambition is to reach 100 gigawatts of renewable capacity by 2030.

The latest transaction “positions us well for further growth and helps contribute to decarbonising the energy grid and meeting both domestic and EU climate targets”, Mr Al Ramahi said.

Its expansion is also aimed at supporting Europe's plans to achieve net zero by 2050, Masdar said.

Late last year, the company completed the €1.2 billion acquisition of Saeta Yield, an Iberian renewables platform with a portfolio of 2.3 gigawatts. Saeta now serves as Masdar’s primary regional operating hub on the Iberian Peninsula.

In July, Masdar and Iberdrola also announced their co-investment in the 1.4-gigawatt East Anglia Three offshore wind farm located off the Suffolk coast in the UK, with each party taking a 50 per cent stake.

The project will be “pivotal in advancing Europe’s ambitious offshore wind development targets”, Masdar said.

The companies also reached financial close for the project in July. Project financing facilities totalling £3.6 billion were secured with 23 banks and the Danish Export Credit Agency.

The financing will cover a substantial part of the total project costs, estimated at approximately €5.2 billion, Masdar said.