Iberdrola has finalised an alliance with the sovereign fund of Norway, managed by Norges Bank Investment Management, to sell a 49% stake in a Spanish renewables portfolio with a 1.26GW capacity.

The two companies have notified the National Securities Market Commission (CNMV) of the fulfilment of all the necessary legal requirements to proceed with the strategic alliance.

Comprising solar (80%) and wind (20%) projects, the renewables portfolio has been valued at €1.2bn ($1.29bn). The remaining 51% stake will be held by Iberdrola.

The company will also control and manage the assets in the portfolio, as well as provide operation and maintenance services and other corporate services for the assets.

Through the strategic alliance, the companies will focus on accelerating decarbonisation plans in Spain.

The partners have also agreed to include an additional 500MW in the alliance. The extra capacity will be located in the Iberian Peninsula.

Norges Bank signed an agreement with Iberdrola in January 2023 to acquire the 49% stake for €600m ($640m).

The portfolio includes 137MW of operational projects in Castilla-La Mancha and Aragon and the remaining projects are under development.

These assets are located in Andalusia (358MW), Aragon (175MW), Castilla y León (102MW), Castilla La Mancha (45MW), Extremadura (343MW), Madrid (55MW) and Murcia (50MW).

When completed, the portfolio is expected to generate enough clean energy to be supplied to more than 700,000 Spanish homes a year.

Last month, Iberdrola submitted its plans to the European Commission to build a photovoltaic (PV) panel manufacturing facility in Spain, with an annual production capacity of 1.6GW.

The company also sought funding under the European Commission’s Innovation Fund programme.