The transaction would see Masdar acquire a portfolio of 745MW of predominantly wind assets, and a 1.6GW development pipeline in Spain and Portugal from Brookfield. This deal represents one of Iberia’s largest renewable energy transactions, as the company targets global capacity of 100GW by 2030.
Abu Dhabi’s Masdar announces its proposed acquisition of Saeta Yield from Brookfield Renewable for an implied enterprise value of USD 1.4 billion (€1.2 billion).
Saeta is an independent developer, owner and operator of renewable power assets with capabilities across the entire value-chain. The transaction consists of a portfolio of 745 megawatts (MW) of predominantly wind assets – 538MW of wind assets in Spain, 144MW of wind assets in Portugal and 63MW solar PV assets in Spain – and includes a 1.6 gigawatt (GW) development pipeline. The transaction excludes a regulated portfolio of 350MW of concentrated solar power assets, which Brookfield will retain and continue to operate.
Commenting on the deal, Saeta CEO Álvaro Pérez de Lema says that he looks forward to working with Masdar to take Saeta to the next phase of its growth story, further consolidating its leadership position as an independent producer of renewable energy in Iberia.
Since acquiring the business in 2018, Brookfield CEO Connor Teskey says that is has worked with Saeta’s management team to successfully execute a business plan focused on divesting non-core assets, optimizing its capital structure, and positioning the business for growth through hybridization, repowering, greenfield development and accretive tuck-in opportunities. The sale is in line with Brookfield Renewable’s asset rotation strategy to recycle capital to fund growth activities.
Recently, Masdar also announced an agreement with Endesa to become a partner for 2.5GW of renewable energy assets in Spain, subject to regulatory approvals and other conditions.
Commenting on the deal, UAE Minister of Industry and Advanced Technology, Chairman of Masdar and COP28 President HE Dr Sultan Al Jaber says that Masdar is committed to accelerating the delivery of clean energy capacity across the Iberian Peninsula and Europe.
“Representing one of Spain’s largest renewable energy transactions, this landmark deal with Brookfield Renewable builds on Masdar’s strong growth story, demonstrating our commitment to the EU’s wider net zero by 2050 target and unlocking new capacity. Matching words with actions, Masdar is further accelerating its ambitious growth plans, as well as supporting the delivery of the UAE Consensus ratified at COP28, to triple renewable energy capacity by 2030, enabling a just, orderly and equitable energy transition,” says Al Jaber.
Brookfield Chair and Head of Transition Investing Mark Carney agrees.
“We are thrilled to conclude this important transaction with Masdar. As global leaders in clean energy development, Brookfield and Masdar will continue to be important players to accelerate the journey towards a net-zero economy,” says Carney.
Notes from the Editor: According to Brookfield, closing of the transaction is subject to customary approvals and is expected to occur around the end of 2024.
