The transaction is part of its €3 billion asset rotation plan to 2022
Iberdrola sells its solar thermal power plant in Spain
- The company maintains its renewable energy strategy in the Spanish market, focused on wind, hydroelectric and solar photovoltaic technologies
Iberdrola has agreed to divest its solar thermal power asset located in the town of Puertollano, Ciudad Real (Spain) by selling it to ENCE. The transaction involves the sale of 90% of the shares in Iberdrola Energía Solar de Puertollano, S.A., the company which owns the 50-megawatt (MW) solar thermal generation unit.
The transaction amounts to €181.1 million, of which €72.3 million correspond to the sale of Iberdrola Energía Solar de Puertollano, S.A. The remainder comprises the assignment to ENCE of the participating loan granted by Iberdrola to the company holding the shares, plus outstanding accrued interest. In addition, payment of a €6.3 million earn-out has been agreed.
Thus, Iberdrola maintains its clean energy focus through wind, hydroelectric and solar photovoltaic technologies.
The deal will have a positive impact in the 2018 consolidated results of the Iberdrola group, which will be quantified at the closing of the transaction. Also, both companies have reached an agreement whereby Iberdrola will operate and maintain the plant for two years.
The sale is conditional on the partner holding the remaining 10% at Iberdrola Energía Solar de Puertollano, S.A., namely the Instituto para la Diversificación y Ahorro de la Energía (IDAE), waiving its right to preferential acquisition of the shares being transferred.
Asset Rotation Plan to 2022
The divestment of this asset in Spain is part of the €3 billion asset rotation plan announced by Iberdrola at last February's presentation of its Strategic Outlook for 2018-2022.
The transaction is in addition to the recent divestment of its conventional generation assets in the United Kingdom, the sale of its gas storage business in the United States, as well as its minority stake in Tirme in Spain. The total amount of these transactions is close to €1.2 billion euros in 2018.
Iberdrola is a global energy leader, the biggest producer of wind power and one of the five top power companies in the world in terms of stock market capitalisation. The group is present in numerous countries and supplies energy to over 100 million people mainly in Spain, the United Kingdom (Scottish Power), USA (AVANGRID), Brazil (Neoenergia) and Mexico. With a workforce of 34,000 and assets in excess of €110 billion, it posted revenues of over €31.26 billion and a net profit of €2.8 billion in 2017
Iberdrola is leading the transition towards a sustainable energy model through its investments in energy from renewable sources, smart grids, large-scale energy storage and digital transformation in order to offer its customers the most advanced products and services. Thanks to its commitment to clean energy, Iberdrola is one of the companies with the lowest emissions and an international benchmark for its contribution to the fight against climate change and for the sustainability of the planet. Iberdrola is listed on numerous international sustainability indices, among them the Dow Jones Sustainability Index and FTSE4Good, and it is considered one of the most sustainable electricity utilities in the world.