Abu Dhabi's Masdar To Invest AED3.27 Billion In Spanish Renewable Energy Company Endesa

Abu Dhabi Future Energy company Masdar announced Thursday that it has signed an agreement with Endesa to collaborate on 2.5 gigawatts (GW) of renewable energy projects in Spain. Masdar will invest AED 3.27 billion (€817 million) for a 49.99% stake.

The deal is valued at €1.7 billion, making it one of Spain's largest renewable energy deals. However, regulatory approvals and other conditions are still pending, WAM reported.

Under this partnership, Masdar will acquire 48 operational solar plants with a total capacity of 2GW. Endesa and Masdar also plan to add 0.5GW of battery energy storage systems (BESS) to the projects.

This partnership strengthens Masdar's position as a reliable global energy partner for governments, investors, developers, and communities.

Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, Chairman of Masdar and COP28 President, said Masdar's global expertise and pioneering approach to renewable energy innovation and development will help to unlock clean energy capacity in Spain, Europe, and across the globe.

He further said that this agreement supports the "global mandate enshrined in the COP28's UAE Consensus to triple renewable energy capacity by 2030 enabling a just, orderly and equitable energy transition,"

"Masdar is accelerating its ambitious growth plans as we target 100GW of renewable energy capacity by the end of the decade," Al Jaber added.

TAQA, ADNOC, and Mubadala jointly own Masdar, while Endesa is a subsidiary of the Italian energy giant Enel.

Enel Group CEO Flavio Cattaneo said that Enel "through its subsidiary Endesa, has started this partnership with a major player such as Masdar and, looking ahead, we hope that we will be able to carry out similar transactions in other geographies."

Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, noted that this strategic partnership in Spain with Endesa for 2.5GW of solar and battery storage assets marks a significant step forward in the company's ambitious growth plans in one of Europe's largest renewables markets.

"This deal with Endesa will play a significant role in supporting Spain and the wider EU in meeting their net-zero ambitions. We are delighted to also sign an MoU with Endesa to become their preferred partner for future solar projects," Al Ramahi said.

Masdar hired several advisers for the deal: BNPP as the transaction adviser, Linklaters as the legal adviser, UL as the technical adviser, PwC as the tax adviser, and PexaPark as the PPA adviser.

Last year, Masdar and France's Electricité de France (EDF) signed an agreement with Kyrgyzstan's Ministry of Energy to develop hydropower and renewable projects to generate a combined capacity of 3.6 gigawatts in the Central Asian country.