UAE-based clean energy-focused developer Masdar announced plans to acquire renewable power company Saeta Yield from Brookfield Renewable together with its institutional partners, for an implied enterprise value of US$1.4 billion. The closing of the transaction is subject to customary approvals, and is expected to occur around the end of 2024.

Based in Madrid, Spain, Saeta is an independent developer, owner and operator of renewable power assets with capabilities across wind and solar energy. The portfolio in the proposed acquisition consists of 745 megawatts (MW) of assets, including 538MW of wind assets in Spain, and 144MW of wind assets in Portugal; and 63MW of solar PV assets in Spain, plus a 1.6 gigawatt (GW) development pipeline. The transaction does not include Saeta’s regulated portfolio of 350MW of concentrated solar power assets, which Brookfield will retain and continue to operate.

The deal further cements Masdar’s expansion into Spain, one of Europe’s largest renewable markets. Masdar recently also announced an agreement with Endesa, The Enel Group’s Spanish subsidiary, to become a partner for 2.5GW of renewable energy assets in Spain, subject to regulatory approvals and other conditions. The deals are in line with Masdar’s plans for growth in Europe, as the company targets global capacity of 100GW, and the production of 1 million tonnes of green hydrogen by 2030. Other recent agreements include Masdar’s acquisition of a 67% stake in Greek renewables company Terna Energy, and a 49% stake in Iberdrola’s Baltic Eagle offshore wind farm in Germany.

Masdar Chairman, and UAE Minister of Industry and Advanced Technology, HE Dr Sultan Al Jaber, said:

“Representing one of Spain’s largest renewable energy transactions, this landmark deal with Brookfield Renewable builds on Masdar’s strong growth story, demonstrating our commitment to the EU’s wider net zero by 2050 target and unlocking new capacity.”

The sale is in line with Brookfield Renewable’s asset rotation strategy to sell off some capital to fund new growth activities. Since acquiring the business in 2018, Brookfield has worked closely with Saeta’s management team to successfully execute a plan focused on divesting non-core assets, optimizing its capital structure, and positioning the business for growth through hybridization, repowering, and developing unused land.

Mark Carney, Chair and Head of Transition Investing at Brookfield, said:

“We are thrilled to conclude this important transaction with Masdar. As global leaders in clean energy development, Brookfield and Masdar will continue to be important players to accelerate the journey towards a net-zero economy.”

Saeta CEO Álvaro Pérez de Lema added:

“After more than six years of successful and profitable growth with Brookfield, we are very excited to open a new chapter in Saeta’s history with the arrival of Masdar as the new controlling shareholder. We look forward to working with Masdar to take Saeta to the next phase of its growth story, further consolidating its leadership position as an independent producer of renewable energy in Iberia.”