Masdar Joins Forces With Endesa In €1.7 Billion Spanish Renewable Energy Deal

Abu Dhabi Future Energy Company (Masdar), a leader in clean energy in the UAE, has announced an agreement with Endesa S.A. to partner on 2.5 gigawatts (GW) of renewable energy assets in Spain. This deal, pending regulatory approvals, involves Masdar investing €817 million (AED3.27 billion) for a 49.99 percent stake, valuing the enterprise at €1.7 billion.

The portfolio Masdar aims to acquire includes 48 operational solar plants with a combined capacity of 2GW. Additionally, Endesa and Masdar plan to integrate 0.5GW of battery energy storage systems into these projects. This partnership enhances Masdar’s reputation as a reliable global energy partner for various stakeholders.

This agreement highlights Masdar’s dedication to accelerating the energy transition in Spain and Europe. The solar projects will significantly contribute to Spain's National Energy and Climate Plan (NECP) and the EU’s net-zero targets by 2050. The acquisition also aligns with Masdar’s ambitious growth plans in Europe.

Recently, Masdar announced a definitive agreement with Greece’s GEK TERNA SA and other shareholders of TERNA ENERGY SA to initially acquire 67 percent of the company’s outstanding shares, subject to regulatory approvals. TERNA ENERGY aims for a renewable energy operational capacity of 6GW by 2030.

Masdar's current presence in Spain includes the Almenara 1.2GW solar photovoltaic project in Castilla la Mancha, which is under development. In March this year, Masdar and Spain’s Iberdrola reached financial close on the 476MW Baltic Eagle offshore wind project off Germany's coast.

Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, Chairman of Masdar and COP28 President, stated, "Building on Masdar’s global expertise and pioneering approach to renewable energy innovation and development, this partnership underscores our commitment to unlocking clean energy capacity in Spain, Europe, and around the world."

Partnerships and Financial Backing

Flavio Cattaneo, CEO of Enel Group, commented on the partnership: "We are pleased that Enel, through its subsidiary Endesa, has started this partnership with a major player such as Masdar." He expressed hope for similar transactions in other regions.

Mohamed Jameel Al Ramahi, CEO of Masdar, remarked on the strategic importance of this partnership: "By forging a strategic partnership in Spain with Endesa for 2.5GW of solar and battery storage assets, we are taking a significant step forward in our ambitious growth plans."

The acquisition was partially funded through financing from BNPP, Santander, Intesa, ADCB, FAB, and SMBC. Lenders were advised by Ashurst. Masdar retained BNPP as its transaction adviser; Linklaters as legal adviser; UL as technical adviser; PwC as tax adviser; and PexaPark as PPA adviser.

This collaboration between Masdar and Endesa not only strengthens their positions but also supports broader environmental goals by contributing to cleaner energy solutions globally.

With inputs from WAM