Business

ACCIONA Energía sells 175 MW hydro portfolio in Spain to Elawan Energy

ACCIONA Energía sells 175 MW hydro portfolio in Spain to Elawan Energy
(photo courtesy Acciona Energia)

ACCIONA Energía has reached an agreement with Elawan Energy, a subsidiary of ORIX Corporation, for the sale of 100% of Acciona Saltos de Agua, S.L. group (ASA) for €287 million (US$310.7 million).

The ASA portfolio comprises 23 fully-owned hydroelectric plants totaling 175 MW of installed capacity located in the regions of Aragón, Cantabria and Cataluña.

The transaction perimeter is debt-free, according to a release.

The transaction is subject to foreign direct investment approval and is expected to close before year-end. It will generate a capital gain for ACCIONA Energía of about €170 million ($184.1 million). 

This hydro portfolio represents 20% of ACCIONA Energía’s hydro installed capacity and has an approximate production of 500 GWh per year.

The portfolio is comprised of reservoir (77% of the capacity) and run-of-river (23% of the capacity) plants ranging from small to medium-scale hydropower assets. The projects have long-term concession agreements with an average remaining concession life of 23 years.

“This transaction highlights the quality of our generation portfolio and represents an important milestone in our asset rotation strategy, bringing to light the divergence between public and private market valuations,” said ACCIONA Energía Chief Executive Officer Rafael Mateo.

Dionisio Fernández, Elawan CEO, stated that “by adding this hydropower portfolio to our existing renewable energy sources, we aim to further stabilize our future power production and build a long-term earnings base.”

Crédit Agricole acted as financial advisor to ACCIONA Energía in this transaction.

ACCIONA is the leading partner of Peace River Hydro Partners, which is building the 1,100 MW Site C hydro project in British Columbia, Canada.

ACCIONA Energía, a subsidiary of Acciona based in Madrid, is involved in the development and structuring of energy projects, engineering, construction, supply, operations, maintenance, asset management, and management and sales of clean energy.

Elawan Energy is a global renewable energy industry operator that offers integrated solutions along the green energy life circle, from the promotion, development and construction of wind farms, photovoltaic plants and hydropower plants until their operation, maintenance and the sale of green energy produced.