Emirati energy firm Masdar, Norwegian sovereign wealth fund Norges Bank Investment Management, and Australian company Fortescue have been selected as finalists to bid for a stake in Spanish utility Iberdrola’s solar energy project portfolio, according to sources familiar with the matter.
Iberdrola intends to sell a 49% share in its solar energy portfolio known as Proyecto Joulita, which has a total capacity of approximately 1 gigawatt, as indicated by individuals who preferred to remain anonymous due to the private nature of the transaction.
One source revealed that Iberdrola is aiming for a total asset valuation of at least 900 million euros (around 1 billion dollars), and this prospective deal resembles divestments the company has made in recent years.
This strategy allows the company to sell minority stakes in large-scale projects to financial partners, enabling it to maintain control over its assets while securing funding to reduce debt and lower capital costs.
Iberdrola is also utilizing the proceeds from these asset recycling transactions to strengthen its investments in energy networks globally.
Some of the qualified investors have a history of making deals with Iberdrola; for instance, the Norwegian sovereign fund acquired a stake in another portfolio for 600 million euros in 2023.
In the same year, Iberdrola sold a 49% share of the Baltic Eagle offshore wind project located off the German coast to Masdar.
Recently, Iberdrola announced a joint investment with Masdar, officially known as the Abu Dhabi Future Energy Company, in the East Anglia 3 offshore wind project in the UK, which has a production capacity of 1.4 gigawatts.