Masdar buys solar assets portfolio worth $887m from Spain's Endesa

Abu Dhabi clean energy company partners for 2.5 gigawatts of renewable energy assets in Spain

Solar panels at a solar energy park in Saelices, Spain. Reuters

Masdar has invested €817 million ($887 million) to acquire a nearly 50 per cent stake in Spanish utility Endesa's solar energy assets as the Abu Dhabi clean energy company continues to expand its presence in Europe.

Under the deal, which has an enterprise value of €1.7 billion, Masdar will become a partner for 2.5 gigawatts of renewable energy assets in Spain, subject to regulatory approvals, the company said in a statement on Thursday.

The portfolio Masdar plans to acquire consists of 48 operational solar plants of 2 gigawatts aggregated capacity, with the two companies aiming to add 500 megawatts of battery energy storage system to the projects.

Masdar and Endesa – which is a subsidiary of Europe's largest electricity group Enel – also signed an initial pact to explore an alliance aimed at jointly developing renewable energy projects in Spain.

"This partnership underscores our commitment to unlocking clean energy capacity in Spain, Europe, and around the world, supporting the global mandate enshrined in the Cop28’s UAE Consensus to triple renewable energy capacity by 2030 enabling a just, orderly and equitable energy transition," said Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, chairman of Masdar and Cop28 President.

"Masdar is accelerating its ambitious growth plans as we target 100GW of renewable energy capacity by the end of the decade.”

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Masdar, jointly owned by the Abu Dhabi National Energy Company, better known as Taqa, Adnoc and Mubadala, is active in 40 countries and generates about 20 gigawatts of renewable energy currently.

The company has been expanding its footprint in Europe, which has made significant strides in clean energy adoption in recent years as it aims to reach net zero by 2050.

The EU aims for at least 42.5 per cent of overall energy consumption to come from renewables by 2030, with some member states aiming for as high as 45 per cent by the same year.

In June, Masdar signed an agreement to acquire Greece’s Terna Energy for an enterprise value of €3.2 billion, in what it said was the largest energy transaction on the Athens Stock Exchange.

It will initially acquire 67 per cent of Terna's outstanding shares, subject to regulatory approvals.

Terna Energy is targeting renewable energy operational capacity of 6 gigawatts by 2030.

In March, Masdar and Spain’s Iberdrola also reached financial close on the 476MW Baltic Eagle offshore wind project located in the Baltic Sea off the coast of Germany.

Masdar’s existing presence in Spain includes the Almenara 1.2 gigawatt solar photovoltaic project in the Castilla La Mancha region of Spain, which is currently under development.

Spain is rapidly building its renewable energy infrastructure. The share of electricity generated from renewable sources rose to 50.8 per cent last year from 42.2 per cent in 2022, an official said in December.

"This deal with Endesa will play a significant role in supporting Spain and the wider EU in meeting their net-zero ambitions," said Mohamed Al Ramahi, chief executive of Masdar.

The acquisition was partially funded via acquisition financing from BNPP, Santander, Intesa, ADCB, FAB and SMBC, the statement said.

Endesa, which operates end-to-end business including the generation, distribution and retailing of electricity, also offers electric mobility services.

"Looking ahead, we hope that we will be able to carry out similar transactions in other geographies," Flavio Cattaneo, chief executive of Enel Group, said.