Engie, a French energy company, and Crédit Agricole Assurances, a French insurance company, have agreed to acquire 97.33 per cent stake in Eolia Renovables, a Spanish renewable energy provider. The deal covers 821 MW of onshore wind capacity, 78 MW of solar photovoltaic (PV) capacity, and a 1.2 GW pipeline of renewable projects as part of the acquisition.
Alberta Investment Management Corporation, a Canadian institutional fund, is selling its controlling share in the deal. While the financial details of the purchase were not disclosed, the enterprise value of the deal was just above €2 billion. Engie will control 40 per cent of the operating assets, while Crédit Agricole Assurances will own 60 per cent of assets. Engie will be responsible for the development, completion and maintenance of the projects.
Engie is planning to install 50 GW of renewable energy by 2025 while the French banking major Credit Agricole aims to expand its renewable energy investments to 11 GW. Spain is an ideal location for investments for these two companies as the country’s National Energy Climate Plan targets 32 per cent of renewable consumption by 2030. It aims to install 55 GW of additional renewable capacity with full decarbonization of the electricity sector by 2050.
REGlobal’s Views: This acquisition will enable both Engie and Credit Agricole to significantly accelerate their expansion strategies in Spain and get closer to their renewable energy goals.
