Masdar to Invest $890 Million in Spain’s Endesa

Abu Dhabi Future Energy Company (Masdar), the UAE’s clean energy leader, announced on Thursday signed an agreement with renewable energy firm Endesa SA in Spain to become a partner for 2.5GW of renewable energy assets in Spain, subject to regulatory approvals and other conditions.

The transaction would see Masdar invest $890 million to acquire a 49.99% stake, with an enterprise value of $1.85 billion, representing one of Spain’s biggest renewable energy deals, Emirates News Agency (WAM) said in a report.

The Masdar portfolio plans to acquire consist of 48 operational solar plants of 2GW aggregated capacity. Endesa and Masdar aim to add 0.5GW of battery energy storage system (BESS) to the projects. The partnership reinforces Masdar’s reputation as a trusted global energy partner for governments, investors, developers, and communities.

The deal demonstrates Masdar’s commitment to accelerating the energy transition in Spain and Europe, and these solar projects will play an important role in supporting Spain to meet its National Energy and Climate Plan (NECP) and the EU’s net zero by 2050 targets.

In addition to the acquisition Share Purchase Agreement (SPA), Masdar and Endesa have signed a Memorandum of Understanding (MoU) to explore an alliance aimed at jointly developing renewable energy projects in Spain.

The deal reflects Masdar’s ambitious growth plans in Europe, having recently announced that it has reached an agreement with Greece’s GEK TERNA SA and other shareholders of TERNA ENERGY SA to initially acquire 67% of the company’s outstanding shares, subject to regulatory approvals and other conditions.

Masdar in Europe

With a strong portfolio of projects in Greece and Europe, TERNA ENERGY is targeting a renewable energy operational capacity of 6GW by 2030.

In March this year, Masdar and Spain’s Iberdrola also reached a financial close on the 476MW Baltic Eagle offshore wind project located in the Baltic Sea off the coast of Germany.

Masdar’s existing presence in Spain includes the Almenara 1.2GW solar photovoltaic (PV) project in the Castilla la Mancha region of Spain currently under development. Masdar is jointly owned by TAQA, ADNOC, and Mubadala; Endesa is a subsidiary of the Italian energy giant Enel.

Dr Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, Chairman of Masdar and COP28 President, said that building on Masdar’s global expertise and pioneering approach to renewable energy innovation and development.

“This partnership underscores Masdar’s commitment to unlocking clean energy capacity in Spain , Europe, and around the world, supporting the global mandate enshrined in the COP28’s UAE Consensus to triple renewable energy capacity by 2030 enabling a just, orderly and equitable energy transition. Masdar is accelerating its ambitious growth plans as we target 100GW of renewable energy capacity by the end of the decade,” he added.

Flavio Cattaneo, CEO of Enel Group, said that his company, through its subsidiary Endesa, has started this partnership with a major player such as Masdar and, looking ahead, we hope that we will be able to carry out similar transactions in other geographies.

Masdar CEO Mohamed Jameel Al Ramahi said that by forging a strategic partnership in Spain with Endesa for 2.5GW of solar and battery storage assets, they were taking a significant step forward in the company’s ambitious growth plans in one of Europe’s largest renewables markets.

He added: “This deal with Endesa will play a significant role in supporting Spain and the wider EU in meeting their net-zero ambitions. We are delighted to also sign an MoU with Endesa to become their preferred partner for future solar projects.”