Spanish multinational Iberdrola has formed a joint venture with insurance company MAPFRE to accelerate the development of renewable energy projects.
The two companies have agreed to make joint investments in renewable energy in Spain by setting up a co-investment vehicle.
In total, the two firms are targeting to deploy 1,000MW of renewable energy capacity.
Iberdola and MAPFRE will start by investing in a 230MW renewables portfolio which includes 100MW of wind energy and 130MW of solar PV capacity.
The Soria and Burgos 100MW wind assets will be located in Castilla y Leàƒ³n while the 130MW PV projects are being developed in Castilla-La Mancha in the province of Guadalajara. The projects are expected to be commissioned in the third quarter of 2022.
Iberdrola will bring its expertise in renewable energy assets development, operation and management, while MAPFRE will bring experience in sustainable investments. MAPFRE will own an 80% stake of the alliance and Iberdrola the remaining 20%.
The establishment of the joint venture falls under efforts by the two companies to accelerate the energy transition, the green economic recovery, job creation and Spain’s industrial transformation.
According to Iberdrola chairman Ignacio Galàƒ¡n: “This urgent strategy has the backing of the European Union and the International Energy Agency. In MAPRE we have found an ideal partner to drive investments and projects in the technologies of the future, enabling us to build a stronger, more competitive and sustainable economy for all.”
Antonio Huertas, chairman of MAPFRE, added: “This alliance between leaders allows us to grow together and, in our case, to continue diversifying our portfolio in a low-interest rate scenario while boosting investments with a positive impact on the environment. Meanwhile, we will move on with our commitment to energy efficiency as an instrument for green growth based on a low carbon economy.”
In January, the two companies already signed an agreement in which Iberdrola has been tasked with providing 100% renewable energy to some 3,000 offices of MAPRE in Spain.