Northland Power to buy large Spanish wind and solar fleet

Canada’s Northland Power is to acquire 33 operational renewables assets in Spain, including 424MW of wind capacity, 66MW of solar PV and 50MW of concentrated solar.

The deal was agreed with Bankinter and Helia Renovables, a fund sponsored by Plenium Partners Asset Management, for a cash consideration of €345 million and the assumption of €716 million of debt. Subject to regulatory approvals and customary closing conditions, the acquisition is expected to be completed in Q3 2021.

It “establishes Northland as a leading operator in a high-growth renewables market and delivers near-term cash flow which complements offshore wind growth strategy,” the company said in a statement. 

Northland also announced a concurrent C$900 million (€600 million) bought deal equity financing to fund the acquisition, as well as projects within its 4-5GW renewables development pipeline.

Spain is targeting up to 40GW of renewables capacity by 2030, plus 4GW of hydrogen and 20GW of energy storage. “The acquisition of the portfolio immediately places Northland as a top 10 renewable power operator in Spain and creates a platform for growth in an attractive market for renewables,” the Toronto-headquartered company said.

Northland has said it aims to create a European onshore renewables asset management platform that will spearhead further growth in Spain and elsewhere in Europe.

The company said the deal was consistent with its prudent financing strategy and provided ample flexibility, with C800 million of available liquidity to fund future growth initiatives.