The European energy giant wants to sell US solar and wind projects worth $1.8 billion

Spanish energy giant Iberdrola is seeking a buyer for 50% of its portfolio of wind and solar projects in the United States, hoping to raise up to $1.8 billion in sales, sources with knowledge of the plans told Bloomberg on Thursday.

Iberdrola, one of the largest utilities and renewable energy developers in Europe and the Americas, wants to sell 50% of its portfolio of 400 megawatt (MW) solar power plants and 300 MW onshore wind farms, all of which have power purchase agreements, according to sources According to Bloomberg, these are PPAs with large technology companies.

The Spanish energy giant wants to formally start the sale process in July 2024 and hopes to complete it by the end of the year.

Earlier this month, Iberdrola signed an agreement to purchase an 18.4% minority stake in its US subsidiary Avangrid, which it did not previously own. Iberdrola already owned 81.6% of Avangrid’s shares before the deal was announced last week.

In March, Iberdrola executive chairman Ignacio Galán said in an interview with the Financial Times that the company would focus the largest part of its multi-billion-dollar investments for 2024-2026 on the United States because its investment plans do not depend on the inflation Reduction Act and the possible repeal of the IRA by a second presidency Trump.

Iberdrola said in March it would invest $44 billion (41 billion euros) and hire 10,000 people by 2026 to accelerate electrification in its key markets.

A total of 85% of investment will go to A-rated markets, with the US remaining Iberdrola’s leading investment destination with 35% of capex, followed by the UK with 24%, Iberia with 15% and Latin America also with 15% of planned capex .

Iberdrola says that of the total investment, $23.3 billion (€21.5 billion) will go to expanding and strengthening its networks in the US, UK, Brazil and Spain.

Author: Charles Kennedy for Oilprice.com

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