United Arab Emirates-based Masdar has signed an agreement to acquire a 49.99% stake in Endesa’s 2.5GW renewable energy portfolio in Spain, valued at €1.7bn ($1.8bn).

Masdar’s investment of €817m represents one of the largest renewable energy transactions in Spain.

The deal was supported by acquisition financing from a consortium of banks including BNPP, Santander and Intesa, with legal advice provided by Ashurst.

Masdar's acquisition comprises 48 operational solar plants with a combined capacity of 2GW.

There are plans to integrate a 0.5GW battery energy storage system into the projects.

The move strengthens Masdar's presence in Spain, a major EU solar market, and supports its goal of reaching 100GW global capacity by 2030.

These solar projects are expected to contribute substantially to Spain's National Energy and Climate Plan (NECP) and the EU's goal of reaching net zero by 2050.

In addition to the share purchase agreement, Masdar and Endesa have signed a memorandum of understanding (MoU) to explore potential joint renewable energy projects in Spain.

This deal strengthens Masdar's European presence, following June 2024's agreement to acquire a 67% stake in Terna Energy from GEK Terna and other shareholders.

Masdar is jointly owned by TAQA, ADNOC and Mubadala, while Endesa operates as a subsidiary of the Italian energy conglomerate Enel.

In July 2024, Masdar raised $1bn through the issuance of its second green bond under the Green Finance Framework.