Masdar Partners with Endesa in €1.7 Billion Renewable Energy Transaction in Spain

  • Masdar has stated that it has agreed with Endesa SA to become a partner for 2.5 gigawatts (GW) of renewable energy assets in Spain.
  • The acquisition was partially funded through acquisition financing from BNPP, Santander, Intesa, ADCB, FAB, and SMBC. Ashurst advised the lenders.

Masdar has stated that it has agreed with Endesa SA to become a partner for 2.5 gigawatts (GW) of renewable energy assets in Spain, subject to regulatory approvals and other conditions. The transaction would see Masdar invest €817 million to acquire a 49.99 per cent stake, with an enterprise value of €1.7 billion, representing one of Spain‘s biggest renewable energy deals.

Also, the portfolio Masdar plans to acquire consists of 48 operational solar plants of 2GW aggregated capacity. Endesa and Masdar aim to add 0.5GW of battery energy storage system (BESS) to the projects. The partnership reinforces Masdar’s reputation as a trusted global energy partner for governments, investors, developers, and communities.

The deal demonstrates Masdar‘s commitment to accelerating the energy transition in Spain and Europe. These solar projects will play an important role in supporting Spain’s meeting of its National Energy and Climate Plan (NECP) and the EU’s net zero by 2050 targets.

In addition to the acquisition Share Purchase Agreement (SPA), Masdar and Endesa have signed a Memorandum of Understanding (MoU) to explore an alliance to develop renewable energy projects in Spain jointly.

The deal reflects Masdar’s ambitious growth plans in Europe. Masdar recently announced that it has reached a definitive agreement with Greece’s GEK TERNA SA and other TERNA ENERGY SA shareholders to acquire 67 per cent of the company’s outstanding shares, subject to regulatory approvals and other conditions. With a strong portfolio of projects in Greece and Europe, TERNA ENERGY targets a renewable energy operational capacity of 6GW by 2030.

Masdar’s existing presence in Spain includes the currently under-development Almenara 1.2GW solar photovoltaic (PV) project in Spain’s Castilla la Mancha region.

HE Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, Chairman of Masdar and COP28 President, said, ” Masdar is accelerating its ambitious growth plans as we target 100GW of renewable energy capacity by the end of the decade.”

Flavio Cattaneo, CEO of Enel Group, said, “We are happy 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, Masdar’s Chief Executive Officer, commented, “By forging a strategic partnership in Spain with Endesa for 2.5GW of solar and battery storage assets, we are taking a significant step forward in our ambitious growth plans in one of Europe’s largest renewables markets.”

Furthermore, the acquisition was partially funded through acquisition financing from BNPP, Santander, Intesa, ADCB, FAB, and SMBC. Ashurst advised the lenders.

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