Norway’s sovereign wealth fund, the largest in the world, is increasing its investment in Iberdrola’s renewable power plants, according to a report from Cinco Dias. The fund has raised the size of its portfolio to 1 gigawatt, although the sources of this information were not specified.
Earlier this year, Iberdrola and the fund announced negotiations for the sale of a 49% stake in a portfolio of onshore wind farms and solar power plants with a capacity of 500 megawatts. This followed a previous deal in January for 1.3 gigawatts worth 600 million euros. The new deal would likely involve assets in both Spain and Portugal.
Spain’s favorable conditions for renewable energy projects, such as its sunny plains, abundant dams, and windy hills, have attracted investors as the government strives to meet its greenhouse gas emissions reduction targets by 2030. Local energy companies like Iberdrola and Repsol have been selling stakes in established projects to raise funds for new ventures.
Norges Bank Investment Management, which manages the Norwegian wealth fund, declined to comment on the report. Iberdrola has also not provided any comments.
This move by Norway’s sovereign wealth fund demonstrates the growing interest and investment in renewable energy projects. By expanding its portfolio in Iberdrola’s renewable power plants, the fund is actively contributing to the development of a more sustainable energy sector.
Definitions:
– Sovereign wealth fund: a state-owned investment fund composed of financial assets such as stocks, bonds, real estate, precious metals, or other investments.
– Gigawatt: a unit of power equal to one billion watts, commonly used to measure the capacity of large power plants.
– Megawatt: a unit of power equal to one million watts, often used to describe the capacity of wind farms or solar power plants.
Source: Cinco Dias newspaper report.