Iberdrola said that the deal pegged the total value of the Baltic Eagle project at about €1.6bil (RM8bil). — Reuters
DUBAI: Spanish utility Iberdrola is selling a 49% stake in its 476 megawatt (MW) offshore wind farm in German waters in the Baltic Sea to Abu Dhabi’s Masdar for about €375mil (US$414.5mil or RM1.89bil).
Iberdrola said that the deal pegged the total value of the Baltic Eagle project, which is set to have 50 wind turbines off Germany’s northeastern coast once they are built and ready to operate, at about €1.6bil (RM8bil). Masdar will contribute proportionally to its stake to develop the project.
The Spanish power giant “will control and manage the asset, providing operation and maintenance services and other corporate services” by retaining a 51% majority stake, it added.
The deal is part of Iberdrola’s strategy to sell stakes in its wind developments to raise cash to finance its €150bil (RM757bil) 2020-2030 investment plan, mostly devoted to renewables and power grids.
Masdar is a renewable energy company that is 43% owned by Abu Dhabi Energy and utility firm Taqa, 33% by sovereign wealth fund Mubadala and 24% by state oil giant the Abu Dhabi National Oil Company.
Masdar was eyeing expansion in Europe, the United States and elsewhere, Reuters reported last week.
The wind farm is expected to have annual production of 1.9 terawatt-hours, or enough for the electricity needs of 475,000 homes, which Masdar said in a statement would save 800,000 tonnes of carbon dioxide from being released into the atmosphere. — Reuters
