Iberdrola Expands Alliance With Norway’s Sovereign Wealth Fund, Adding 708 MW From Extremadura’s Ceclavín And Tagus XL Solar Plants

Iberdrola has expanded its co-investment alliance with Norway’s sovereign wealth fund, managed by Norges Bank Investment Management, by adding 708 MW of new renewable capacity. The additional capacity comes from two major photovoltaic projects in Extremadura, Spain: Ceclavín with 328 MW and Tagus XL with 380 MW. As with previous additions to the joint venture, Iberdrola will maintain a 51 percent majority stake in these assets. With this agreement, the alliance now covers a renewable portfolio of 2,500 MW and more than 2 billion euros of co-investment across Spain and Portugal.

Nearly 900 MW of this capacity is already in operation under the joint venture, which was created in 2023 to accelerate electrification in Iberia and potentially expand to other regions. The Ceclavín and Tagus XL plants are already producing clean energy, supplying electricity to more than 885,000 people each year in Extremadura and helping to avoid around 100,000 tonnes of CO₂ emissions annually. Other projects currently under construction are expected to be added to the partnership in the near future.

Norges Bank Investment Management manages assets worth approximately €1.7 trillion and holds stakes in more than 9,000 companies worldwide. It is one of Iberdrola’s largest shareholders, with nearly 3 percent ownership for over seven years, and made its first direct investment in Spanish renewable assets through this alliance. The collaboration strengthens the long-term relationship between Iberdrola, Europe’s largest utility by market capitalization, and Norges Bank Investment Management, one of Europe’s largest sovereign wealth funds.

Both partners have signaled the possibility of extending their cooperation to additional renewable opportunities outside Iberia. In recent months, Iberdrola has also advanced several other strategic transactions to support global decarbonisation. These include increasing its stake in Brazilian subsidiary Neoenergia to around 84 percent through the purchase of an additional 30 percent from PREVI, and forming a €5.2 billion partnership with Masdar to co-invest in the 1.4 GW East Anglia Three offshore wind farm in the United Kingdom.