Endesa buys the hydroelectric business of Acciona Energía for 1,000 million

The energy company Endesa has reached an agreement with Acciona Energía for the purchase of 34 hydroelectric plants with a total installed capacity of 626MW in Spain for an amount of 1,000 million euros, as reported both companies in separate communications to the National Securities Market Commission (CNMV).

Specifically, with this operation Acciona Energía divests 100% of the company Corporación Acciona Hidráulica. The transaction is debt-free and will generate an estimated capital gain of 620 million euros for the Entrecanales family group.

The Corporación Acciona Hidráulica SL portfolio is made up of 34 plants located in Aragón, Soria, Valencia and Navarra, and they have long-term concession agreements with a remaining average life of around 30 years.

The facilities are reservoir plants (56% of capacity), flow-through plants (30% of capacity), and pumping plants (14%), with an annual production of around 1.3 TWh.

The closing of the transaction is scheduled for the first half of 2025, once the necessary authorizations regarding competition and foreign investments have been obtained.

This operation, which “is part of its asset rotation strategy” of Acciona Energía, is in addition to the closing of the sale a few days ago of 175 MW of hydraulic power to Elawan Energy, a subsidiary of Orix Corporation, for 293 million euros, with capital gains of 180 million euros. Thus, with these two divestments, the group chaired by José Manuel Entrecanales will generate total capital gains of around 800 million euros.

Endesa recovers hydraulic assets

The agreement will allow Endesa to consolidate its position in the renewable energy sector, increasing the share of energy sales with its own production from renewable sources, maximizing the income generated by its integrated presence throughout the value chain.

The electricity company is also recovering some hydraulic assets that were originally its own, since they ended up in the hands of Acciona in 2009 when the alliance between Enel and the company was broken to take over the electricity company in the takeover bid.

With the closing of the transaction, Endesa will reach an installed hydraulic capacity of more than 5.3GW in Spain, with a total power from renewable sources in Spain and Portugal of 10.7GW.