Power Grid

UAE'S Masdar has signed one of the largest renewable energy deals in Spain in recent years, a move designed to support Madrid's energy and climate goals as well as the EU's ambitions for carbon neutrality by 2050.

According to a statement from the Washington-based Specialty Energy Platform, Masdar will partner with Indesa to acquire a 49.9% stake in Spain's 2.5 GW renewable energy portfolio. Under the agreement, Masdar will be an asset partner in this portfolio and will collaborate on developing joint renewable energy projects in Spain.

The deal, announced on July 26, 2024, involves Masdar investing AED 3.27 billion ($0.89 billion) for a 49.9% share in the portfolio, which has a total value of AED 6.80 billion ($1.85 billion). This investment is one of the largest renewable energy transactions in Spain. Masdar and Indesa will also add a 0.5 GW battery storage system to the projects, which include 48 solar power plants with a combined capacity of 2 GW.

Sultan Al Jaber, Minister of Industry and Advanced Technology and Chairman of Masdar, stated that this significant investment highlights Masdar's leadership in clean energy development and global expertise. The investment is a step toward achieving the UAE's goal to triple renewable energy capacity by 2030 and support an orderly energy transition. Masdar’s CEO, Mohamed Jameel Al Ramahi, also noted that the partnership with Indesa will play a crucial role in advancing Spain’s and the EU’s carbon neutrality goals.

The transaction also fits into Masdar's broader European expansion plans. The company recently agreed to acquire a 67% stake in Terna Energy, which aims to increase its renewable energy capacity to 6 GW by 2030. Masdar is also active in Spain with the 1.2 GW Al Manara solar PV project under development in Castilla-La Mancha. Masdar is owned by Abu Dhabi National Energy Company (TAQA), Abu Dhabi National Oil Company (ADNOC), and Mubadala Investment Company, while Indesa is a subsidiary of Italian energy giant Enel.