Lorraine Williamson
MADRID: As reported by Información, Abu Dhabi’s renewable energy giant Masdar has bolstered its presence in Spain by establishing two new subsidiaries in Madrid.
This development follows recent acquisitions of renewable energy assets worth €2 billion and a strategic alliance with Iberdrola to invest €15 billion in green energy projects. Spain has emerged as a pivotal market for Abu Dhabi, with agreements and negotiations involving major national energy players.
The newly formed companies, Masdar España Renewables and Masdar España Anri, began operations in November. Both entities operate under the parent company, Masdar España Holding, and share a common mission: investing in renewable energy projects across the Iberian Peninsula. Ubaldo Yanez Díaz, Masdar’s head in Spain, and Amalia Giannakikou, the company’s top executive in Europe, have been appointed to oversee these subsidiaries.
Billion-euro investments in Spain
In a few short months, Masdar has secured renewable energy deals in Spain exceeding €2 billion. The company’s key transactions include acquiring Saeta Yield from Canadian fund Brookfield for $1.4 billion (€1.2 billion) and purchasing a 49.99% stake in a vast portfolio of photovoltaic plants from Endesa for €817 million. These acquisitions position Masdar as a leading player in Spain’s renewable energy sector.
Masdar’s acquisition of Saeta includes a portfolio of 745 megawatts (MW) of operational green assets, predominantly wind power. This portfolio comprises 538 MW of wind assets in Spain, 144 MW in Portugal, and 63 MW of solar photovoltaic assets in Spain. Additionally, the deal includes a 1.6 gigawatt (GW) development pipeline in Spain and Portugal. The enterprise value of the acquisition was €1.2 billion, with an equity value of €696 million. This landmark deal underscores Masdar’s strategy to strengthen its renewable energy footprint in the Iberian Peninsula and Europe.
Wider Abu Dhabi involvement
Abu Dhabi’s investments in Spain’s energy sector extend beyond Masdar. Taqa, Masdar’s principal shareholder, recently attempted a takeover of Naturgy in collaboration with Criteria, the investment arm of Fundación La Caixa. Although unsuccessful, the move underscores Abu Dhabi’s interest in Spain’s energy landscape. Additionally, Mubadala, Abu Dhabi’s sovereign wealth fund and a shareholder in Masdar, holds significant stakes in Spanish energy firms, including Enagás and Moeve (formerly Cepsa).
Building a green portfolio
Through its acquisition of Saeta Yield, Masdar gained control of 745 megawatts (MW) of operational green assets in Spain and Portugal, primarily wind power (538 MW in Spain and 144 MW in Portugal) and a smaller share of solar power (63 MW in Spain). The company also acquired 1,600 MW of development projects across the Iberian Peninsula.
The agreement with Endesa includes purchasing nearly half the capital of a company managing 2,000 MW of photovoltaic parks. Endesa will secure a long-term electricity supply from these facilities, further integrating Masdar’s renewable energy production into Spain’s power grid.
“Masdar is committed to accelerating clean energy capacity delivery in Iberia and Europe,” stated Sultan Al Jaber, UAE’s Minister of Industry and Advanced Technology and Masdar’s Chairman. He reaffirmed the company’s goal of achieving 100,000 MW of renewable energy capacity globally by 2030, continuing Masdar’s trajectory of rapid growth.