- Iberdrola is considering selling some of its US renewable energy business to settle debts.
- The project would support the company’s €47 billion investments in renewable energy.
According to sources with knowledge of the situation, Spanish utility Iberdrola SA is considering selling a portion of its US renewable energy business to reduce debt and fund future investments.
The US activities of the Spanish company’s renewable energy division are situated under Avangrid Renewables LLC, a subsidiary of Avangrid Inc., which has its US headquarters there. On its website, the renewable energy company claims that it owns and controls the wind and solar generating assets totalling over 7.3 GW dispersed over more than 20 states.
Insiders who talked to Reuters claim that Iberdrola has recruited an unnamed bank to help them with the potential sale. The concept is supposedly still in the planning stages, but considerations are still being made.
The possible agreement would align with Iberdrola’s plan to reduce debt by rotating its assets and selling ownership interests in particular companies. The project would support the company’s €47 billion investments in renewable energy and power grids in 2023–2025 and assist it in achieving its objective of having 52 GW of installed clean power capacity by the end of the planning period.
Iberdrola said last week that it had reached a deal to sell the management of Norway’s sovereign wealth fund, Norges Bank Investment Management (NBIM), a 49% stake in its 1,265 MW of wind and solar power assets in Spain. Earlier than that, it facilitated the sale of a 49% ownership in the German Wikinger offshore wind farm to Swiss infrastructure firm Energy Infrastructure Partners (EIP).