Spanish electric utility company Iberdrola has agreed to divest its solar thermal power asset located in the town of Puertollano, Ciudad Real, by selling it to eucalyptus pulp and renewable biomass energy producer ENCE Energía y Celulosa, S.A.
The transaction involves the sale of 90 percent of the shares in Iberdrola Energía Solar de Puertollano, S.A., which owns the 50-megawatt solar thermal generation unit. The move amounts to 181.1 million euros ($208.8 million), of which $83.3 million corresponding to the sale of Iberdrola Energía Solar de Puertollano, S.A. In addition, payment of a $7.2 million earn-out has been agreed.
Thus, Iberdrola maintains its clean energy focus through wind, hydroelectric and solar photovoltaic technologies. The deal will have a positive impact in the 2018 consolidated results of the Iberdrola group, which will be quantified at the closing of the transaction. Also, both companies have reached an agreement whereby Iberdrola will operate and maintain the plant for two years.
The sale is conditional on the partner holding the remaining 10 percent at Iberdrola Energía Solar de Puertollano, S.A. The divestment of this asset in Spain is part of the $3.4 billion asset rotation plan announced by Iberdrola at last February's presentation of its strategic outlook for 2018 to 2022.