Iberdrola increases its wind energy portfolio in Brazil

Iberdrola, through its subsidiary Neoenergia, closed an asset purchase agreement with PEC Energía for the acquisition of a portfolio of wind power generation projects that add up to a potential capacity to be installed of about 400 megawatts (MW), thus giving a it went further in its growth in renewables in Brazil, one of its strategic markets, the energy company reported.

Specifically, the total value of the acquisition can reach 80 million reais (about US $ 15 million), to be paid after the closing of the operation and depending on the achievement of certain milestones in the development of the projects.

The closing of the purchase is subject to the usual conditions precedent in this type of transaction, including the approval of the Brazilian competition authority (CADE).

These new facilities, which will cover an area of ??about 8,000 hectares, will be located in the Sierra de Gameleira, in the state of Bahia.

In addition, the operation includes a right to purchase option on other wind projects in the same region, which may be exercised in the future by the Iberdrola subsidiary.

Likewise, Iberdrola indicated that this operation allows combining organic growth with ‘greenfield’ investments that add a portfolio of projects in the medium and long term. Through its subsidiary Neoenergia, which is listed on the São Paulo Stock Exchange, the group already has more than 3,500 renewable MW in operation in Brazil.

Seventh corporate operation in 2020

With this new operation, the company chaired by Ignacio Sánchez Galán closes its seventh corporate operation so far this year and takes a new step in its positioning in markets with a large renewable projection – many of them in their initial state -, after the operations in Europe, Australia and Japan, which add a portfolio of medium and long-term projects.

Thus, despite the current uncertain environment marked by the coronavirus crisis, the energy company has closed important corporate operations in 2020.

This same Thursday, it announced its jump to the Japanese market, after the purchase of the local developer Acacia Renewables, with a portfolio of 3.3 gigawatt (GW) offshore wind projects.

In addition, it has recently acquired the Australian renewable energy company Infigen Energy, following the launch of a friendly takeover bid in June. The operation allows Iberdrola to become one of the leading operators in the Australian renewable energy market, with 670 MW of wind power in operation and a portfolio of 1 GW wind and solar projects in different stages of development.

In June, the company also agreed with Sweden’s Svea Vind Offshore AB (SVO) a majority acquisition option for the future development of the largest portfolio of offshore wind projects in Sweden. These projects, which have a capacity of 9 GW and are in different stages of processing, are expected to start operating in 2029.

In addition, in May it acquired two onshore wind projects in Scotland, with a total capacity of 165 MW and whose development will involve an investment of around US $ 225 million; and closed the acquisition of the French Aalto Power for just over US $ 119 million.