UAE-based Abu Dhabi Future Energy Company (Masdar) has agreed to acquire a 49.99% stake in the Spanish solar power assets of Enel’s subsidiary, Endesa in a deal worth €817m.
The assets involved in the deal have a combined capacity of 2GW.
Masdar will acquire the minority stake in Enel Green Power España (EGPE) Solar, which has an enterprise value of €1.7bn on a 100% basis.
EGPE Solar is a newly incorporated vehicle formed to consolidate all of Endesa’s existing operational solar photovoltaic (PV) assets in Spain. The portfolio consists of 48 operational solar plants.
The transaction, which is set within the framework of a long-term partnership, also has 15-year power purchase agreements (PPAs).
Under the terms of PPAs, Endesa, through a subsidiary, is expected to purchase 100% of the energy produced by the PV plants involved in the deal.
Endesa and Masdar also intend to add up to 500MW of battery energy storage system (BESS) to the projects.
In addition, both parties have signed a memorandum of understanding (MoU) to explore a partnership focused on jointly developing clean energy projects in Spain.
Masdar CEO Mohamed Jameel Al Ramahi said: “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 in one of Europe’s largest renewables markets.”
Enel stated that the transaction aligns with the “partnership” business model outlined in its 2024-2026 strategic plan. The plan focuses on maintaining control over strategic assets along with optimising productivity and returns on invested capital.
Upon the closing of the deal, Enel will continue to maintain control and fully consolidate EGPE Solar.
Enel Group CEO Flavio Cattaneo said: “We are pleased that Enel, through its subsidiary Endesa, has started this partnership with a major player such as Masdar and, looking ahead, we hope that we will be able to carry out similar transactions in other geographies.”
Subject to various customary conditions, including clearance from the Spanish government on foreign investments, the transaction is expected to be completed in Q4 2024.
For the deal, BNPP was transaction adviser, Linklaters served as legal adviser, and UL was technical adviser for Masdar.
