Abu Dhabi’s renewable energy company, Masdar, is in advanced negotiations to acquire a 49.9% stake in a solar portfolio managed by the Spanish power utility Endesa for approximately $200 million. The deal involves a solar portfolio with a capacity of around 450 megawatts and is expected to strengthen the existing partnership between the two companies. This investment aligns with Masdar’s strategy to expand its operations in Spain, which is viewed as a critical market for its growth in Europe.

A spokesperson for state-owned Masdar stated that while they do not comment on market speculation, the company is actively exploring opportunities in the region. They are working towards a global target of generating 100 gigawatts of renewable energy by 2030. Endesa has opted not to provide any comments regarding the negotiations.

This potential deal is also consistent with the strategy of Enel, Endesa’s parent company, which aims to sell minority stakes in certain projects to manage its debt while retaining control over its assets. Last July, Masdar acquired a minority stake in a 2-gigawatt solar portfolio owned by Endesa. In a separate transaction in September, Masdar purchased green energy firm Saeta Yield from Canada’s Brookfield for $1.4 billion.

Masdar is backed by significant UAE entities, including the power and water firm TAQA, the national oil company ADNOC, and the sovereign wealth fund Mubadala Investment Company. The spokesperson for Masdar referred to these previous acquisitions as part of their broader strategy to enhance their presence in the European renewable energy market.