Spanish power group Iberdrola has agreed to sell its 90% share of the 50 MW Ibersol plant in Spain to Ence Energia at a price of 72.3 million euros ($82.3 million), Iberdrola announced October 18.
Ence is Spain’s leading biomass power generator with an installed capacity of around 220 MW.
The Ibersol plant uses parabolic trough technology and started commercial operations in 2009.
Iberdrola will also transfer to Ence 108.8 million euros of remaining loans made to Ibersol.
Spain was a trailblazer in CSP technology and currently hosts over 2 GW of installed CSP capacity. All of Spain’s installed capacity was commissioned between 2008 and 2013, before activity was halted by the removal of state subsidies. Spanish companies continue to develop CSP technology and play a major role in international projects. Strong solar resources, good availability of large flat land area and domestic CSP expertise could support a reawakening of the Spanish CSP market in the coming years, according to market participants.
The sale of Ibersol forms part of Iberdrola’s 3 billion-euro “global asset rotation plan” to boost growth and meet carbon reduction targets, announced by the company in February.
The Spanish group aims to reduce emissions by 30% by 2020 and 50% by 2030, compared with 2007 levels.
Earlier this month, Iberdrola UK subsidiary ScottishPower agreed to sell its remaining 2.6 GW gas and hydroelectric power plant fleet to become the UK’s first vertically-integrated power group to produce 100% of its electricity from wind energy.
Completion of the Ibersol transaction will require the Instituto para la Diversificacion y Ahorro de la Energia (IDAE), holder of the remaining 10% of Ibersol share capital, to waiver its right of first refusal for Iberdrola’s shares.