Iberdrola, Norges Bank close giga-deal for solar, wind in Spain

• Spanish utility Iberdrola SA (BME: IBE) claimed on Wednesday that it has actually settled the agreement with Norway's Norges Bank Investment Management (NBIM) to offer it a minority risk in a 1,265-MW wind as well as solar portfolio in Spain and included greater than 500 MW of renewables to the negotiations.

As announced in January this year, NBIM consented to get from Iberdrola a 49% stake in project vehicles holding the assets in a transaction that valued the entire portfolio at EUR 1.2 billion (USD 1.28 m).

In a bourse filing on Wednesday, Iberdrola stated the offer closed under the terms formerly reported to the market. This implies that the utility will have a 51% stake in the portfolio and also retain control as well as management of the assets, supply operation as well as upkeep as well as various other company services.

The package contains 137 MW of operational nuclear power plant as well as 1,128 MW of projects in growth in numerous areas of Spain. Of the total capacity, 20% is wind and also 80% is solar photovoltaic.

For NBIM, the supervisor of Norway's sovereign riches fund as well as an investor of Iberdrola, the bargain will mark its initial straight investment in renewables in Spain.

The original agreement also consisted of the opportunity of taking the collaboration to various other countries in the future, a term that continued to be in place. Iberdrola stated that the firms are currently dealing with adding over 500 MW of renewable energy assets in the Iberian Peninsula to their alliance.