Endesa finalizes €1bn hydro power acquisition from Acciona in Spain

Endesa Generación, a subsidiary of Endesa S.A., has officially completed the acquisition of Corporación Acciona Hidráulica S.L. from Corporación Acciona Energías Renovables, a key unit of the Acciona Group. This transaction, valued at approximately €1 billion, represents a major expansion of Endesa’s hydro power assets in Spain, solidifying its position as a leader in the country’s renewable energy market.

The acquisition, first announced in November 2024, involved the purchase of 34 hydroelectric plants, strategically located in northeastern Spain, with a combined installed capacity of 626 MW. These assets, which produced approximately 1.3 TWh of electricity in 2023, will significantly bolster Endesa’s renewable energy production, further aligning with Enel Group’s strategy to increase clean energy generation.

Why Did Endesa Acquire These Spanish Hydro Plants?

Endesa’s decision to acquire these hydro power plants stems from its broader commitment to renewable energy expansion in Spain and the Iberian Peninsula. The company aims to enhance the share of its energy sales covered by in-house renewable generation, reducing reliance on external sources and strengthening grid stability with flexible, modulatable hydroelectric production.

Hydroelectric power plays a crucial role in Spain’s transition toward sustainable energy, offering a reliable and low-emission electricity source. The acquisition ensures Endesa’s long-term control over strategic energy assets, reinforcing its competitive position in Spain’s renewable energy sector while contributing to national carbon reduction goals.

What Does This Acquisition Mean for Enel’s Renewable Energy Expansion?

The hydro power acquisition directly supports the Enel Group’s renewable energy expansion strategy, which prioritizes integrating operational renewable assets to optimize long-term returns. Following the completion of this deal, Endesa now holds over 5.3 GW of hydroelectric capacity in the Iberian Peninsula, contributing to its total renewable capacity of 10.7 GW across Spain and Portugal.

Hydroelectric power, unlike intermittent renewables such as wind and solar, provides on-demand energy generation, making it essential for maintaining grid stability. With Spain intensifying its efforts to transition away from fossil fuels, Endesa’s hydro power expansion ensures it remains a pivotal player in the decarbonization of the Spanish energy market.

How Was the Acquisition Financed, and What Are the Key Financial Considerations?

The €1 billion acquisition was funded through Endesa’s available credit lines, reflecting its strong financial position. Additionally, Corporación Acciona Hidráulica had no outstanding debt at the time of the transaction’s closing, simplifying the financial integration of these assets into Endesa’s existing operations.

From an investment perspective, hydroelectric power plants are considered high-value assets due to their long lifespan, low operating costs, and ability to generate consistent revenue. By securing these Spanish hydro plants, Endesa has strengthened its asset portfolio, ensuring stable electricity production and long-term revenue generation from renewable energy sales.

What Regulatory Approvals Were Required for the Transaction?

The acquisition process adhered to strict regulatory approvals, including clearance from Spain’s Antitrust Authority and foreign investment (FDI) authorization from the Spanish Council of Ministers. These approvals were necessary to ensure market competition integrity and compliance with Spain’s energy policy framework.

Spain has been actively monitoring foreign investments in strategic sectors, particularly within its renewable energy industry, to prevent market monopolization and ensure a balanced energy transition. The regulatory green light for Endesa’s hydro power acquisition signifies confidence in its ability to operate these assets while contributing to Spain’s clean energy goals.

What Are the Broader Implications for Spain’s Renewable Energy Market?

Spain has been aggressively expanding its renewable energy capacity, with government policies favoring the growth of wind, solar, and hydro power. The acquisition of these Spanish hydro plants supports national energy security by providing a stable renewable energy source that complements intermittent sources like wind and solar.

Additionally, hydro power expansion enhances Spain’s ability to meet its 2030 climate targets, which include cutting greenhouse gas emissions by 55% compared to 1990 levels. Endesa’s strengthened hydroelectric portfolio will play a critical role in supporting this transition to sustainable energy while ensuring grid stability amid increasing electricity demand.

What’s Next for Endesa and Enel in the Renewable Energy Sector?

Following the successful integration of these hydro power assets, Endesa is expected to continue its renewable energy expansion, leveraging Spain’s regulatory incentives and growing demand for clean electricity. The company has outlined plans to further develop wind and solar energy projects, ensuring diversified renewable generation across its portfolio.

For Enel Group, this hydro power acquisition represents another step in its commitment to sustainable investments, reinforcing its leadership in Europe’s clean energy market. As competition in the renewable energy sector intensifies, securing hydro power assets provides Enel with a strategic advantage, offering both stable energy output and long-term profitability.

Strengthening Endesa’s Role in Spain’s Renewable Energy Transition

With the completion of this €1 billion hydro power acquisition, Endesa Generación has secured a valuable hydroelectric portfolio, reinforcing its position in Spain’s renewable energy market. The acquisition supports both Endesa’s expansion goals and Spain’s clean energy transition, ensuring long-term energy security and sustainable power generation.

By increasing its Spanish hydro plants portfolio, Endesa continues to play a pivotal role in shaping the country’s energy future, contributing to the broader efforts of reducing carbon emissions and fostering a low-carbon economy. As the renewable energy sector evolves, Endesa’s investment in hydro power ensures it remains at the forefront of Spain’s energy transformation.