Norges Bank Investment Management has signed a new agreement with Iberdrola, with whom it already shares a portfolio with a peak capacity of 2,500 MW in renewable energy projects. The new deal, closed at the end of April, consists of purchasing a 49% stake in a 644 megawatt peak portfolio of two solar plants located in Spain.

The new investment by the fund associated with the Norwegian bank has reached 203 million euros, which translates into a total valuation of the plant at around 414 million euros. The transaction will not include external debt financing. Iberdrola will remain co-owner and operator of the portfolio.

Growing partnership
The new portfolio consists of two solar PV power plant projects with a total installed capacity of 644 megawatts peak, equivalent to the annual electricity consumption of 400,000 Spanish households. One of the projects is already in operation, located in Extremadura and with a capacity of 328 megawatts peak. The other, with 316 megawatts peak and located in Castile and León, is under development, with construction expected to be completed in 2025. The Norwegian sovereign wealth fund will take possession of the asset once it is operational.

This new purchase is an extension of the one signed in January with the Spanish energy company to acquire a 49% stake in two solar plants and two onshore wind farms located in Spain and Portugal. At the time, Iberdrola reiterated that its partnership plans to reach 2,600 megawatts peak, with a joint investment in these two countries of more than 2 billion euros over the next three years. This is a goal they are already well on their way to achieving.

One of its main shareholders
The partnership between Norges Bank and Iberdrola started in January 2023 with another similar transaction. Moreover, the Spanish company identifies the Norwegian fund as one of its main shareholders, having had a stake of over 3% for more than seven years.

The objective of the fund is to ensure long-term management of the revenues from Norway's oil and gas resources. It currently has small holdings in around 9,000 companies in 72 countries, with a focus on four investment areas: equities, bonds, real estate and renewable energy infrastructure.

^{Photo: Iberdrola}