Endesa buys 626 MW of hydroelectric power from Acciona Energía
Endesa has reached an agreement with Acciona Energía to buy 626 megawatts (MW) of hydroelectric power plants in Spain worth €1 billion, both companies said.
Specifically, Acciona Energía sells 100% to Corporación Acciona Hidráulicain a transaction that will generate an estimated capital gain of €620 million. As the company told the National Securities Market Commission (CNMV), the operation is debt-free and is scheduled to close in the first half of 2025, once the necessary approvals have been received.
Acciona Hidraulica Corporation’s portfolio consists of 34 hydroelectric power plants with a total installed capacity of 626 MW. (MV). These plants are located in Aragon, Soria, Valencia and Navarre and have long-term concession agreements with a remaining average life of about 30 years. These are reservoir stations (56% of capacity), flow stations (30% of capacity) and pumping stations (14%) with an annual output of about 1.3 terawatt-hours (TWh).
Acciona Energía said the operation “is part of its asset rotation strategy.”. This is therefore in addition to the sale of 175 MW of hydraulic energy concluded a few days ago to Elawan Energy, a subsidiary of Orix Corporation, for 293 million euros with a capital gain of 180 million.
Endesa is restoring some of the hydraulic assets that were its source
Meanwhile, during this operation Endesa is growing in renewable generationwhich is one of its main goals, and is returning some hydraulic assets that originally belonged to it, since they fell into the hands of Acciona in 2009 when the alliance with Enel was broken to take over the electricity company as part of a takeover bid.
The energy company, led by José Bogas, has indicated that this agreement will allow this to happen.”strengthen its position in the renewable energy sectorincreasing the share of energy sales from in-house renewable generation, maximizing the revenue generated through an integrated presence across the entire value chain.”
When closing a deal Endesa will achieve an installed hydraulic capacity of over 5.3 gigawatts (GW) in Spain.with a total renewable capacity of 10.7 GW in Spain and Portugal.
Agreed purchase price for the entire share capital of these assets will be financed from cash flows generated from Endesa’s ordinary activities and is consistent with the planned capacity development plan.