Iberdrola explores sale of 49% stake in Portuguese renewable assets to Norwegian wealth fund

(Bloomberg) — Iberdrola SA is in talks to sell a 49% stake in a 300-megawatt portfolio of Portuguese renewable assets to Norway’s sovereign wealth fund, according to people with knowledge of the matter.

The deal would seek to expand an existing partnership between the Bilbao-based utility and Norges Bank Investment Management, which already own assets in Spain, said the people, who asked not to be identified discussing non-public information. 

No final agreement has been reached and Iberdrola could still decide not to proceed with the sale, one of the people said. Spokespeople for Iberdrola and NBIM declined to comment when contacted by Bloomberg News.  

Earlier this year, NBIM bought a 49% stake in Spanish solar plants and onshore wind farms for €600 million ($631 million), with total capacity of 1.27 gigawatts. Local Spanish media has subsequently reported that the utility is seeking to sell an additional portfolio in the country to NBIM. The Portuguese sale is part of those discussions, the people said. 

Iberdrola, Europe’s top renewable energy developer, has a target in its 2025 strategic plan to sell €4.9 billion in assets and raise an additional €2.6 billion by divesting minority stakes in clean energy projects. The firm has already largely exceeded the target with the sale of a fleet of mostly gas-fired plants in Mexico for $6 billion in April.

The company is seeking to sell minority stakes in some projects, such as the Portuguese portfolio, to retain control while receiving cash to pay debt and reduce the cost of capital. 

Oslo-based NBIM has said it plans to partly steer its investment strategy toward clean energy storage and transmission. It also bought 50% of wind farm in the Netherlands for about €1.4 billion in 2021.