UAE’s Masdar targets Iberian renewable energy leader following recent agreements
Masdar targets growth in Spain following acquisition of Saeta Yield and minority stake in solar portfolio with Endesa
UAE’s Masdar Expands Iberian Renewable Energy Footprint After Recent Contracts
September 27, 2024
MADRID – United Arab Emirates renewable energy company Mustar is seeking to further develop its presence in the Iberian market after winning two contracts in the region in recent months, a company executive told Reuters.
This week, Masdar secured its second significant renewable energy contract in Spain in as many months, paying $1.4 billion to acquire Saeta Yield from Brookfield in Canada.
In July, it agreed to take a minority stake in a 2-GW solar portfolio controlled by Endesa, a unit of Italy’s Enel.
“The fact that we have done two deals in two months tells you that we are very interested in the Spanish market,” said M&A head Faisal Tahir Bhatti.
“We are well on our way to creating our own champion.”
Saeta’s 745 MW of wind assets, 1.6 GW of projects under development in Spain and Portugal, and a 90-strong staff provide a strong platform for growth in Iberia and beyond, he said.
Muster has committed $30 billion, discounting recent transactions, to about 20 GW of renewable projects globally to date, with a target of 100 GW by 2030.
Energy behemoths like Iberdrola and Enel are happy to sell minority holdings in wind and solar farms to Masdar and other deep-pocketed investors from the Gulf and other countries, who have increased agreements in a sector beset by high interest rates and growing borrowing costs. Manage your debt.
Mastar – controlled by UAE utility TAQA, oil major ADNOC and sovereign wealth fund Mubadala Investment Company – is now focusing on developing its Spanish platforms.
Masdar is in talks with Endesa to upgrade the 5 gigawatts of capacity tied to the July deal, while he said the Syta pipeline should be connected to the grid by 2030.
Masdar is looking at new opportunities like current partners Endesa and Iberdrola, but is open to new partnerships, under the right conditions and with a “very selective” approach.
