Linklaters advises Masdar on historic deal with Endesa

Linklaters Spain has advised Masdar (Abu Dhabi Future Energy Company) on its strategic alliance with Endesa in the Spanish renewables sector, including the agreement to acquire a 49.99% stake in a portfolio of 48 solar photovoltaics projects with a capacity of 2GW. The alliance will mark a turning point in the market, with total value of around 1.7 bn.

A historic agreement

Masdar, a subsidiary of Taqa, will join Endesa as a partner in numerous operational solar installations in Spain, in a historic operation for Endesa and Enel in the Spanish renewables market. This portfolio belongs to the company Enel Green Power Solar (EGP Solar), now 100% owned by Enel Green Power Spain, which in turn is 100% owned by Endesa, controlled 70% by the Italian giant Enel. The agreement stipulates that Masdar will pay 817 million euros for the acquisition of 49.99% of EGP Solar. Additionally, the agreement includes 15-year power purchase agreements (PPA) under which Endesa, through a subsidiary, will acquire 100% of the energy generated by the installations covered by the agreement.

The agreement also envisions potential future hybridization with battery storage systems of up to 500 megawatts. In other words, the agreement starts with a total of 2,500 megawatts. Endesa and Masdar have also signed a Memorandum of Understanding (MOU) to “explore” new renewable generation project developments in Spain. In practice, Masdar becomes Endesa’s key partner in Spain.

Linklaters advisors’ team

The Linklaters advisors’ team was composed of Esteban Arza, Celso Méndez and Olivia Martínez (corporate), Begoña Martínez and Piotr Hurkala (banking), Jorge Toral, Sergio García, Ignacio Alférez and Alejandra Arribas (Public law) – all pictured from left to right, from top to bottom.