Naturgy pays 536 million for a large portfolio of renewables in Spain

The third Spanish electricity company, Naturgy, has announced on Tuesday the purchase of a portfolio of 422 megawatts (MW) of wind energy already in operation and 435 MW of photovoltaic solar hybridization in an “advanced state of development” that belonged to the investment fund Ardian Infrastructure . The operation, communicated to the National Securities Market Commission (CNMV), is valued at 536 million euros. All the assets are located in Spain. In recent months, the good progress of the business of the former Gas Natural Fenosa —and of the rest of the companies in the sector— had multiplied their cash flows and the company itself acknowledged that it was exploring investment alternatives.

The projects that make up the portfolio have an average remaining regulatory life of six years, “diversified in several locations in Spain with high value and high wind and solar resources, close to existing Naturgy operations in Castilla-La Mancha, Castilla y León, Catalonia , Andalusia and Galicia”, according to the note sent to the stock market regulator. “The assets will be transferred without personnel, so they present important synergies when integrated into nearby Naturgy operations.” When the useful life of the operating assets ends, estimated at 16 years, the company will be able to “implement wind repowering to maximize the value of the project.”

The sale does not imply the total exit of Ardian from the Spanish market. The fund, as explained in a note published in parallel to that of Naturgy, still “has 1,000 MW of developments in Spain and Italy that have been excluded from this operation.” The closing of the same, he adds, is expected by the end of July, once the purchasing party “completes the competition procedures required by the authorities.”

The company chaired by Francisco Reynés considers that the purchase is “one more step” in achieving its strategic objectives, “complementing the more than 1,000 MW of organic renewable projects currently under construction in Spain, which are expected to be operational before the end of from 2024″. Naturgy currently has 88 renewable projects in operation, totaling 2,300 MW. Of these, 26 are in Castilla y León; 16 in Castilla La Mancha; 17 in Galicia; six in Andalusia and four in Catalonia, in locations close to those now acquired from Ardian. In addition, this 2023 the company adds thirty wind farms and photovoltaic plants under construction, equivalent to the aforementioned more than 1,000 MW of additional capacity, which should be in operation before the end of next year.

In recent months, the company has received the go-ahead for 18 wind and photovoltaic projects in Spain, with a total power of more than 1,300 MW. Of these, eight wind farms in Galicia and a large photovoltaic plant in Campo de Arañuelo (Extremadura) stand out.

Abroad, Naturgy has more than 3,000 MW of renewable power in operation, with a clear focus on Australia, “where the group aims to reach an installed capacity of 2,200 MW of wind, photovoltaic and storage technology in 2025.” . The energy company has also recognized its interest in expanding its still incipient business in the United States, one of the most attractive markets for Spanish firms in the sector, such as Iberdrola or Repsol.

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