A majority stake in Eolia Renovables, an independent renewable power producer based in Spain, will be acquired by French multinational utility ENGIE and insurance firm Credit Agricole Assurances.
ENGIE and Credit Agricole Assurances will acquire a 97.33% stake in Eolia Renovables from Canadian Alberta Investment Management Corporation.
The acquisition will add 899MW of operating assets and a 1.2GW pipeline to ENGIE’s renewable energy portfolio.
ENGIE says the deal will help the utility to expand its presence within the Spanish market and will enable the firm to take opportunities within the market as Spain expands its rollout of low-carbon energy resources to mitigate climate change and ensure a secure energy supply.
Spain plans to increase the share of renewables in its energy mix to 32% by 2030 from 20% in 2020 as part of the National Energy Climate Plan. The country plans to deploy 55GW of renewables capacity to fully decarbonise its electricity sector by 2030, according to the ENGIE.
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ENGIE has set a target to own 50GW of renewables capacity by 2025 and this acquisition is expected to move the energy company in that direction.
Credit Agricole Assurances says the acquisition is part of the firm’s efforts to play a key role in the energy transition. The company seeks to double its renewables capacity to 11GW by 2025, the average energy consumption of four million households per year.
ENGIE will own 40% of the operating assets whilst Credit Agricole Assurances will own a 60% stake. Furthermore, ENGIE will be responsible for the development, operation, and maintenance of the projects set to be implemented by Eolia Renovables.
The acquisition will enable ENGIE to avoid an additional 726,000 tons of greenhouse gas emissions each year.
Catherine MacGregor, ENGIE CEO, said: “This acquisition of Eolia Renovables, one of the largest renewable players in Spain, is fully in line with our strategy which is to accelerate our investments in Renewables in our key markets while bringing our industrial and energy management expertise. The transaction will also allow the Group to support Spain in reaching its ambitious renewables and decarbonization goals.”
Completion of the transaction is expected by Q1 2022.