TotalEnergies announces the effective sale of 50% of a renewable energy asset portfolio in Portugal, consisting of wind, solar and hydroelectric power plants, to a Japanese consortium led by MM Capital Partners 2 Co., Ltd., together with Daiwa Energy & Infrastructure Co. Ltd. and Mizuho Leasing Co., Ltd. The transaction values all these assets, with a total capacity of 604 megawatts (MW), at €550mn, while the amount actually received by TotalEnergies for this sale totals €178.5mn.
Details of the agreement
Following this transaction, TotalEnergies will remain the operator of the entire portfolio concerned and will still hold an equal 50% stake. Under the defined terms, TotalEnergies will also be responsible for marketing the electricity produced once the regulated tariffs currently in effect expire. The average age of these energy facilities is currently 16 years.
The portfolio includes various types of renewable energy production, notably hydroelectric infrastructures, wind farms and photovoltaic solar parks operational in Portugal. This diversification aligns with the French group’s multisectoral approach in renewable energy, aiming to balance its assets in integrated electricity operations.
Capital allocation strategy
Olivier Jouny, Renewable Director at TotalEnergies, stated: “We are delighted with this partnership in Portugal, a country where TotalEnergies intends to continue its development in renewables”. He added: “In line with our strategy, this transaction allows us to optimise our capital allocation in integrated electricity operations and contributes to improving profitability in the sector”.
This sale is part of TotalEnergies’ business model, which is based on partial divestment of assets to maximise the return on invested capital. By retaining the role of operator, TotalEnergies will be able to continue benefiting from operational income while sharing investment risks with third-party partners.
Profile of the Japanese buyers
The acquiring Japanese consortium is composed of companies specialised in infrastructure and energy leasing. MM Capital Partners 2 Co., Ltd., Daiwa Energy & Infrastructure Co. Ltd., and Mizuho Leasing Co., Ltd. operate in energy investment, asset management and long-term infrastructure financing, seeking to diversify their holdings in European renewable energy assets.
This type of acquisition reflects growing interest from international investors in European renewable energy infrastructure, considered stable and sustainable assets.
