M&A Picks Up in Spain’s Renewable Energy Sector
Spain, which has been a frontrunner in the European renewable energy transition, is also in the news as its clean energy sector has been witnessing a spate mergers and acquisition in its renewable energy sector.
In a latest deal Capital Dynamics, an independent global private asset management firm, said that as part its clean energy expansion, it has acquired 100% equity stake of six solar photovoltaic (PV) assets in the country, as part of two acquisitions.
All six assets have also entered into Pay-As-Produced (“PaP”) power purchase agreements with an S&P 500 company, Capital Dynamics said.
The first acquisition includes a 157 MW portfolio made up of three construction-ready solar PV assets in Andalucía, Spain. These projects are currently under construction and are expected to be completed by the end of 2024.
The second acquisition represents a 160 MWp portfolio consisting of three fully consented, construction-ready solar PV assets located in the Aragon province of Spain. These assets have secured the environmental and planning permissions, namely the Declaración de Impacto Ambiental (“DIA”) and the Autorización Administrativa de Construcción (“AAC”), positioning them for immediate construction. The portfolio is expected to reach commercial operations in the second half of 2025.
Dario Bertagna, Co-Head of Capital Dynamics Clean Energy, said that these acquisitions represent a significant addition to his company’s portfolio from their exclusive pipeline of proprietary deals in Spain.
“Spain continues to be a prime market for our investment strategy, and we expect to deploy substantial capital in the region. Spain’s robust PPA market enables us to mitigate risk and enhance asset returns. With increasing government support and the anticipated stabilization of rates across Europe, the upcoming year is crucial for creating value for our investors and contributing to a more sustainable future,” he added.
Once operational, the portfolios are expected to generate clean energy equivalent to 3.83 million metric tons of avoided CO2 emissions during its lifetime and enough electricity to power over 195,751 homes per year.
Capital Dynamics has been investing directly in clean energy in Europe since 2013 and currently owns and operates almost 2GW of subsidy-free assets. Its clean energy platform makes direct equity investments in carbon-reducing, renewable power generating projects from late-stage development through commercial operations.
The clean energy team, including its dedicated asset management affiliate, Netro Energy, is comprised of over 35 specialised professionals with global capabilities, sector expertise and an extensive industry network.
Other Deals
In other deals this year, Exus Renewables, a premier independent power producer and asset management firm specialising in the renewable energy sector, announced the acquisition of a 51-MW wind farm a couple of months ago in the north of Spain from independent Spanish company Enhol Group, whose main work centres on the renewable energy sector.
DWS, a prominent asset management firm, recently acquired a significant solar energy portfolio from X-ELIO last month while Statkraft has signed the final agreement to acquire Elecnor subsidiary Enerfin.
The closing of the Enerfin deal significantly builds scale and strengthens Statkraft’s position in Spain and Brazil and the transaction has an estimated enterprise value of $2 billion.
