Norges Bank Investment Management (NBIM), which is responsible for the investments of the Government Pension Fund Global (GPFG), has signed an agreement to acquire a 49 per cent interest in a portfolio of solar plants and onshore wind farms located in Spain and Portugal.

The agreement, which was signed on 17 January 2024, will see NBIM pay €307m for its stake in the portfolio, valuing the portfolio at approximately €627m. No external debt financing will be involved in the transaction.

The seller of the 49 per cent interest is Iberdrola, which will remain co-owner and operator of the portfolio.

“We are really pleased to announce this new important deal with our great partner Iberdrola. It expands our footprint in Spain and is also our first step into Portugal. We look forward to adding more attractive renewable infrastructure projects going forward,” NBIM CEO, Nicolai Tangen, said.

The portfolio comprises two solar plant projects and two onshore wind projects with an installed capacity of 674 MW, equivalent to the annual electricity consumption of 350,000 Spanish households. Solar plants make up 60 per cent of the portfolio, while onshore wind accounts for the remaining 40 per cent.

All four projects are currently under development, expected to be completed in 2025-2026 and NBIM will take ownership of these when they become operational.

“The investment aligns with our long-term strategy, and we are very pleased to strengthen our partnership with Iberdrola. We look forward to working with them on these projects,” NBIM chief real assets officer, Mie Holstad, added.

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