Endesa signs an agreement with Masdar for the management of its photovoltaic plants in Spain

The alliance means that Masdar will acquire a minority stake (49.99% of the share capital) of EGPE Solar, a company that brings together Endesa’s photovoltaic plants in operation in Spain, for 817 million euros.

Endesa informs the market that, through its wholly owned company Enel Green Power España, it has signed an agreement with Masdar, a relevant player in the renewable sector, for the sale of a minority percentage – equivalent to 49.99% – of EGPE Solar. This recently created company, wholly controlled by Enel Green Power Spain, is the owner of all of Endesa’s solar photovoltaic plants in operation in Spain, with a total installed capacity of approximately 2GW.

The agreement provides for the recognition of a consideration by Masdar of 817 million euros for the acquisition of 49.99% of EGPE Solar, subject to the usual adjustments in this type of transactions. The enterprise value of 100% of EGPE Solar recognized in the agreement is equivalent to approximately €1.7 billion.

The transaction is part of a long-term alliance with Masdar, which also provides for 15-year power purchase agreements (PPA) according to which Endesa, through a subsidiary, will acquire 100% of the energy generated by the photovoltaic plants. involved in the agreement. A possible future hybridization of battery energy storage systems (BESS) is also foreseen in the plant portfolio, up to 0.5 GW of additional capacity.

The closing of the sale, which is expected to occur during the fourth quarter of 2024, is subject to a series of conditions precedent customary in this type of transaction, including the authorization of the Spanish Government on foreign investments.

The sale is part of Endesa’s “Partnership” model, included in its 2024-2026 Strategic Plan, of seeking minority partners in strategic assets that allow it to maximize their value and return on invested capital, while maintaining control over them.

In addition, EGPE and Masdar have signed a non-binding Memorandum of Understanding (MOU) to explore a possible alliance to jointly develop renewable generation projects in Spain.

Endesa is a leading electricity company in Spain and the second in Portugal. In addition, it is the second gas operator in the Spanish market. Develops an integrated electricity generation, distribution and marketing business. It also offers electric mobility services, where it is one of the main charging point operators in Spain, and other value-added services aimed at the electrification of energy uses in homes, companies, industries and public administrations. Endesa is firmly committed to the United Nations SDGs and, as such, decisively promotes the development of renewable energies through Enel Green Power Spain, the digitalization of networks through e-distribution and corporate social responsibility. In this last area we also act from the Endesa Foundation. Our human team totals around 9,000 employees. Endesa is part of Enel, the largest electricity group in Europe.