Endesa, through Enel Green Power Spain, has closed its alliance in renewables with the United Arab Emirates group Masdar through the sale of a minority stake of 49.99% in a portfolio of operational photovoltaic projects in Spain with a total installed capacity of about two gigawatts (GW) for 850 million euros, according to the electricity company.
Specifically, Masdar will take that minority stake in the share capital of EGPE Solar, the entity that owns these photovoltaic assets, in an operation that values 100% of this company at around 1.7 billion euros. In accordance with the agreement signed on July 25, Masdar will pay this consideration of around 850 million euros for the acquisition of this stakeamount subject to the usual adjustments in this type of operations after closing.
Endesa, for its part, has indicated that The operation has allowed a reduction of the group’s consolidated net debt by approximately 850 million euros in 2024although it does not affect the company’s economic results, given that it will retain control of EGPE Solar and continue with its comprehensive consolidation. At the end of last September, the net debt of the group led by José Bogas stood at 10.4 billion euros, the same level as at the end of 2023. Thus, the sale was closed after compliance with the previous conditions stipulated in the agreement signed at the end of last July, which also included the authorization of the Government of Spain for foreign investments.
The operation is in line with the strategy of the Enel Group, Endesa’s largest shareholder with a 70% stake in its capital, in terms of alliances, aimed at increasing financial flexibility. Therefore, it retains control of operating assets in the main countries in which the group maintains an integrated presence and optimizes its risk-return profile.
Long term partnership
In addition, the operation is part of a long-term partnership with Masdar, which also provides for 15-year power purchase agreements (PPA). Through these agreements, Endesa, through one of its subsidiaries, is expected to acquire 100% of the energy generated by the photovoltaic assets. In addition, a possible future hybridization of the battery energy storage system (BESS) of the plant portfolio is contemplated, which would offer up to 0.5 GW of additional capacity.
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