Endesa sells 49.99% stake in Spanish photovoltaic assets to Masdar

The two companies have agreed to sell a 49.99% stake in EGPE Solar for €817 million ($887 million). This values ​​the entire company at €1.7 billion.

The transaction includes power purchase agreements signed for EGPE Solar’s ​​PV portfolio for a period of 15 years. In the future, the company intends to hybridize its PV portfolio with a maximum output of 0.5 GW of battery energy storage systems (BESS).

Endesa estimates that the agreement will be completed in the fourth quarter of 2024, and the company will retain full control of its subsidiary, which will have no impact on its future financial results.

In addition, EGPE Solar and Masdar signed a non-binding Memorandum of Understanding to explore opportunities for a partnership to develop renewable energy projects in Spain.

Masdar is no stranger to the Spanish market, where it is currently developing a 1.2 GW photovoltaic plant in the central Castile-La Mancha region.

Mohamed Jameel Al Ramahi, CEO of Masdar, said: “By entering into a strategic partnership in Spain with Endesa for 2.5GW of solar and battery storage, we are taking a significant step forward in realizing our ambitious growth plans in one of the largest renewable energy markets in Europe.”

Spain aims to produce 76 GW of solar energy by 2030

Spain is currently the European country with the second largest operational photovoltaic capacity, behind Germany, and with the ambitious goal of reaching 76 GW by 2030. Last year, the Ministry of Ecological Transition (MITECO) updated Spain’s National Energy and Climate Plan (NECP) and almost doubled the photovoltaic capacity it intends to install in the coming years, from 39 GW to 76 GW, along with 22 GW of BESS capacity.

Spain added 5.6 GW of installed capacity on land last year, up 28% from 2022, according to the national transmission system operator, Red Eléctrica. By the end of 2023, Spain had installed more than 25.5 GW of photovoltaic capacity, accounting for 20.3% of the country’s total electricity production.

Masdar’s Expansion in Europe

The deal sees Masdar continue its expansion into European markets, where it recently acquired a 67% stake in Greek renewable energy company Terna Energy. Masdar bought Terna Energy for €20 ($21.45) per share. The Greek developer has 2 GW of solar PV, with over 100 MW under construction, and aims to have an operational renewable energy portfolio in Greece and Europe of 6 GW by 2030.

Masdar’s expansion isn’t just coming through acquiring new assets or businesses, but also through green bonds. Earlier this week, the company raised $1 billion in financing to support the development of new clean energy projects to reach its goal of a 100 GW renewable energy portfolio by the end of the decade.