Masdar, the renewable energy arm of the United Arab Emirates, is intensifying its focus on Europe’s green energy sector. Following a recent deal with Spain’s Endesa, Masdar is exploring both minority investments and full ownership opportunities to bolster its presence in the region.
Last Thursday, Masdar announced it would invest 817 million euros ($887 million) to acquire a 49.99% stake in Endesa’s 48 solar plants in Spain. These plants have a combined capacity of 2 gigawatts. This move marks a significant step in Masdar’s strategy to increase its European footprint, aiming to help meet the continent’s ambitious green energy targets.
Mazin Khan, Masdar’s CFO, told Reuters that the investment climate in Europe is ripe with opportunities. The recent stabilisation of asset prices and the need for substantial investments to achieve green targets make it an ideal time for expansion. Masdar, which has a global renewable portfolio of approximately 20 gigawatts valued at over $30 billion, sees Europe as crucial in reaching its goal of 100 gigawatts by 2030.
In addition to the Endesa deal, Masdar and Endesa have signed a memorandum of understanding to explore developing another 3 gigawatts of solar capacity. Despite high interest rates and rising debt costs in Europe, which have led other utilities to sell stakes in renewable projects, Masdar remains proactive in seeking new opportunities.
The company, controlled by UAE’s power and water firm TAQA, ADNOC, and Mubadala Investment Company, is also looking at potential investments in other regions, including the United States.
