Spanish energy major Iberdrola and Norges Bank Investment Management have expanded their renewable energy partnership with the addition of 646 MW of new solar photovoltaic capacity, raising the joint venture’s total operational portfolio in Spain and Portugal to 1.5 GW.

The expansion builds on a partnership launched in 2023, when the two organisations committed to co-invest more than €2 billion in renewable energy projects across the Iberian Peninsula, with a long-term target of developing approximately 2.5 GW of capacity.

Project Locations and Emissions Impact

The newly added solar capacity comes from photovoltaic plants located in the Spanish provinces of Granada and Salamanca. According to Iberdrola, the projects generate enough electricity to supply more than 800,000 people annually and are expected to avoid around 85,000 tonnes of carbon dioxide emissions each year.

These additions reinforce utility-scale solar as a central component of the joint venture’s decarbonisation strategy in Southern Europe, where high solar irradiation supports strong generation economics.

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Ownership Structure and Operational Control

As with previous investments under the partnership, Iberdrola retains a 51 percent majority ownership stake in the new projects. The company continues to lead development, construction, and operations, while Norges Bank Investment Management provides long-term institutional capital aligned with stable infrastructure-style returns.

This structure allows Iberdrola to scale its renewables pipeline while maintaining operational oversight, while NBIM gains exposure to contracted clean energy assets in mature European markets.

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Strategic Significance for Long-Term Capital

The expanded joint venture highlights the growing role of partnerships between utilities and sovereign wealth funds in financing Europe’s energy transition. For Iberdrola, the collaboration supports continued growth in renewables without overextending its balance sheet. For NBIM, it offers long-duration exposure to assets aligned with energy security and climate goals.

Iberdrola indicated that the partnership could extend beyond Spain and Portugal, suggesting potential future expansion into additional markets as new renewable investment opportunities arise.

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