Iberdrola has announced the expansion of its joint venture with Norges Bank Investment Management, the manager of Norway’s sovereign wealth fund, by incorporating 708 megawatts (MW) of new photovoltaic capacity from the Ceclavín and Tagus XL projects located in Extremadura, Spain. Ceclavín, operational since 2021, contributes 328 MW, while Tagus XL, in operation since the beginning of the year, adds 380 MW.
A partnership nearing the gigawatt mark
With this transaction, the total operating capacity within the joint venture now reaches 900 MW, more than quadrupling its size since inception. Iberdrola retains a 51 % majority stake in these new assets, in line with previous contributions to the structure.
This initiative is part of a joint investment programme worth over €2bn ($2.11bn), targeting the development of a 2,500 MW renewable energy portfolio in Spain and Portugal. Additional projects currently in advanced stages of construction are expected to be added to the partnership soon.
A long-term investment relationship
Established in 2023, the joint venture between Iberdrola and Norges Bank Investment Management aims to accelerate electrification across the Iberian Peninsula, with potential future expansion to other geographies. The partnership builds on a long-standing relationship between the two entities, with Norges Bank having been one of Iberdrola’s main shareholders for over seven years, holding nearly 3 %.
Norges Bank Investment Management, which manages approximately €1.7tn ($1.79tn) in assets, owns on average 1.5 % of all listed companies worldwide and 2.5 % of those listed in Europe. The investment in Ceclavín and Tagus XL marks its first direct investment in renewable assets in Spain.
Ongoing portfolio expansion
This operation forms part of Iberdrola’s ongoing growth strategy, which has seen several recent high-profile transactions. These include the acquisition of an additional 30 % stake in its Brazilian subsidiary Neoenergía from pension fund PREVI, bringing its ownership to approximately 84 %, and a partnership with Masdar to jointly invest €5.2bn ($5.47bn) in the 1.4 GW East Anglia THREE offshore wind farm in the United Kingdom.
