Masdar is eyeing the Iberian renewable energy champion after recent deals

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After completing two deals in the region in recent months, UAE-based renewable energy company Masdar told Reuters it will seek further expansion in the Iberian market, an executive told Reuters.

This week, Masdar completed its second major renewables deal in Spain in two months, purchasing Saeta Yield from Canadian company Brookfield for $1.4 billion.

The renewable energy company agreed in July to take a minority stake in a 2-gigawatt (GW) solar portfolio controlled by Endesa, a unit of Italy’s Enel.

“The fact that we have concluded two transactions within a few months shows that we are very interested in the Spanish market,” said head of mergers and acquisitions Faisal Tahir Bhatti.

“We are well on our way to building our champion.”

Saeta’s 745 megawatts of mostly wind assets, 1.6 GW of projects under development in Spain and Portugal and a staff of 90 provide a solid platform for growth in the Iberian Peninsula region and beyond, he said.

With a goal of achieving 100 GW of renewable capacity by 2030, Masdar has invested in approximately 20 GW of renewable energy projects globally, worth $30 billion, excluding recent transactions.

Masdar and other wealthy investors in the Gulf and other regions have stepped up deals in a sector hit by high interest rates and rising debt costs, with energy giants such as Iberdrola and Enel eager to sell minority stakes in wind and solar parks to maximize profits and reduce debt.

Masdar – controlled by United Arab Emirates utility TAQA, oil company ADNOC and sovereign wealth fund Mubadala Investment Company – will now focus on developing its Spanish platforms.

Masdar is in talks with Endesa to develop capacity up to 5 GW as part of the July deal, he said, while the Saeta pipeline should be connected to the grid by 2030.

Masdar will consider potential new opportunities with existing partners such as Endesa and Iberdrola, but is also open to new partnerships on appropriate terms and with a “very selective” approach.

Read: UAE’s Masdar acquires Brookfield’s Saeta Yield for $1.4 billion