Iberdrola reinforces its co-investment alliance with Norges Bank adding 708 MW of renewables

Ignacio Galán, Executive Chairman of Iberdrola, and Nicolai Tangen, CEO of Norges Bank

The solar PV projects of Ceclavin, operational since 2021, and Tagus XL, in operation since the beginning of the year, are incorporated to the joint venture between Iberdrola and Norges Bank Investment Management
After this agreement, operating capacity in the joint venture reaches 900 MW, multiplying by more than 4 times
Both companies have a co-strategic long-term alliance to accelerate electrification of more than 2 billion euros, with 2,500MW renewable portfolio

Iberdrola increases its co-investment alliance with Norway's sovereign wealth fund, managed by Norges Bank Investment Management, with the contribution of an additional 708 MW of renewable capacity corresponding to the photovoltaic installations of Ceclavin, with 328 MW and Tagus XL with 380 MW, both located in Extremadura (Spain).

As in previous additions to this Joint Venture, Iberdrola will retain a majority stake of 51 % in these assets.

This new agreement consolidates the co-strategic alliance of 2,500 MW renewable portfolio and more than 2 billion euros of co-investment in Spain and Portugal, which already includes other operational projects, thus reaching nearly 900 MW in operation in the joint venture.

Other assets currently in an advanced stage of construction are expected to be contributed in the near future to the joint venture, created in 2023 to accelerate electrification, initially in Iberia and potentially in other geographies.

Specifically, Ceclavin and Tagus XL already produce clean energy to supply more than 885,000 people a year in the region of Extremadura and contributes to avoiding the emission of 100,000 tonnes of CO2.

A long-term partnership

Norges Bank Investment Management has assets under management of around €1.7 trillion and stakes in more than 9,000 companies. It owns on average 1.5 % of all listed companies in the world and 2.5 % of all listed companies in Europe.

Norges Bank Investment Management has been one of Iberdrola's largest shareholders for more than seven years, with a stake of close to 3 %. Building on this relationship, Norges Bank Investment Management joined forces with Iberdrola to make its first direct investment in renewable assets in Spain.

Two leaders in their sectors, Iberdrola –the largest utility in Europe by market cap– and Norges Bank Investment Management –one of the largest sovereign wealth funds in Europe– are thus strengthening a long-term alliance that could be extended to additional renewable opportunities in other geographies.

Transactions to grow

In recent months, Iberdrola has signed and closed several transactions, including long-term alliances to drive the decarbonisation of the economy. Noteworthy examples include the acquisition of an additional 30% of its Brazilian subsidiary Neoenergía from PREVI, reaching approximately 84% of the capital or its partnership with Masdar to co-invest €5.2 billion in the 1.4 GW East Anglia THREE offshore wind farm in the United Kingdom.