Masdar’s €817 million gamble: Spain’s biggest renewable energy deal unveiled

Abu Dhabi Future Energy Company PJSC – Masdar has made headlines with its latest announcement, marking a significant advancement in the renewable energy sector. The UAE’s clean energy leader revealed a groundbreaking agreement with Endesa S.A., which will see Masdar invest €817 million to acquire a substantial 49.99% stake in a portfolio of renewable energy assets in Spain. This deal, with an impressive enterprise value of €1.7 billion, represents one of the largest renewable energy transactions in Spain’s recent history.

Record-Breaking Deal in Renewable Energy

The transaction involves the acquisition of 2 gigawatts (GW) of operational solar energy plants across 48 sites in Spain. Additionally, Masdar and Endesa plan to enhance the projects with a battery energy storage system (BESS) of up to 0.5 GW. This substantial move underscores Masdar’s commitment to bolstering Spain’s transition to renewable energy and achieving its National Energy and Climate Plan (NECP) and the European Union’s net zero by 2050 targets.

The partnership not only represents a strategic expansion for Masdar but also highlights its role as a leading global energy partner for governments, investors, and communities. This deal demonstrates Masdar’s determination to accelerate the energy transition in Spain and broader Europe.

Expanding Horizons: Masdar’s Strategic Moves

In addition to this acquisition, Masdar has signed a Memorandum of Understanding (MoU) with Endesa. This MoU aims to explore future collaborations on renewable energy projects in Spain. The agreement is part of Masdar’s broader strategy to grow its footprint in Europe, following a recent definitive agreement with Greece’s GEK TERNA SA and TERNA ENERGY SA to acquire 67% of TERNA ENERGY’s shares, pending regulatory approvals.

Masdar’s push into the European market aligns with its ambitious growth plans. Recently, the company achieved financial closure on the 476 megawatt (MW) Baltic Eagle offshore wind project in Germany, further solidifying its position in the renewable energy sector.

The Impact of the Partnership

This latest deal with Endesa not only strengthens Masdar’s presence in Spain but also underscores its dedication to advancing the global energy transition. The acquisition of solar energy assets and the potential addition of battery storage are expected to play a crucial role in supporting Spain’s energy goals and the EU’s broader climate objectives.

HE Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, Chairman of Masdar, and COP28 President, commented on the partnership, highlighting its alignment with Masdar’s global renewable energy ambitions. He emphasized the role of this deal in supporting the UAE’s commitment to tripling renewable energy capacity by 2030, as outlined in the COP28 UAE Consensus.

Flavio Cattaneo, CEO of Enel Group, expressed enthusiasm for the partnership, noting that working with a prominent player like Masdar is a positive step. He also expressed hopes for similar future collaborations in other regions.

Mohamed Jameel Al Ramahi, CEO of Masdar, highlighted the strategic significance of the partnership, particularly in Spain, one of Europe’s largest renewable energy markets. He stated that the deal is a major step forward in Masdar’s growth plans and will significantly contribute to meeting Spain’s and the EU’s net-zero goals.

Advisory and Financing Details

Masdar’s acquisition was facilitated with support from various advisors and banks. BNP Paribas acted as the transaction advisor, Linklaters provided legal advice, UL served as the technical advisor, PwC handled tax advisory, and PexaPark advised on power purchase agreements (PPAs). Financing for the acquisition came from BNP Paribas, Santander, Intesa, ADCB, FAB, and SMBC, with Ashurst advising the lenders.

This transaction not only cements Masdar’s position in one of Europe’s largest solar markets but also advances its ambitious growth plans. With a target of achieving 100 GW of renewable energy capacity by the end of the decade, Masdar is set to play a pivotal role in the global energy transition.