Iberdrola and Norges Bank Boost Renewable Alliance with Over €2 Billion Investment in Spain and Portugal

Norges Bank Investment Management CEO, Nicolai Tangen, said: “We are really pleased to announce this new important deal with our great partner Iberdrola. It gives us more critical mass 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 674 MW now incorporated amounts to €627 million, excluding 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 €1.4 trillion and stakes in more than 9,000 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, the largest European electricity company by capitalisation.

Iberdrola and Norges Bank Investment Management have formed a secure alliance, between two preferred partners, which could be extended to additional renewable opportunities in other geographies.

In recent months, Iberdrola has closed several long-term alliances to promote the decarbonisation of the economy:

In December, Iberdrola closed an agreement with Masdar to seek to co-invest €15 billion in offshore wind and green hydrogen in Germany, the United Kingdom and the United States
Masdar also signed an agreement last year to co-invest in the 476 MW Baltic Eagle offshore wind farm, which valued the project at €1.6 billion
Last September, Iberdrola partnered with GIC for the expansion of transmission networks in Brazil for 430 million euros
The original alliance with Norges Bank Investment Management was to develop 1,265 MW of renewable energy in Spain
The company has signed an agreement to sell more than 8,400 MW of gas-fired combined cycle plants in Mexico for $6 billion.
Iberdrola and MAPFRE have continued to advance their strategic alliance by incorporating 150 new MW through a joint venture, which already has 450 MW.
Iberdrola and BP also signed a strategic alliance in March to deploy 11,700 fast charging points in Spain and Portugal.
In addition, in 2022, Iberdrola signed an alliance with Energy Infrastructure Partners to co-invest in the Wikinger offshore wind farm and boost its offshore wind portfolio.

Source: Iberdrola