Masdar, the renewables energy giant of the United Arab Emirates (UAE), on Tuesday announced a planned acquisition of renewable power developer Saeta Yield from Brookfield in a deal valuing the target company at $1.4 billion.

Saeta, owned by Brookfield Renewable, develops, owns, and operates renewable power assets in the Iberian Peninsula.

The transaction consists of a portfolio of 745 megawatts (MW) of predominantly wind assets – 538 MW of wind assets in Spain, 144 MW of wind assets in Portugal, and 63 MW solar PV assets in Spain – and includes a 1.6 gigawatt (GW) development pipeline. The deal does not include a regulated portfolio of 350 MW of concentrated solar power assets, which Brookfield will retain and continue to operate, Masdar said.

The transaction is subject to customary approvals and closing is expected to occur around the end of 2024.

The deal would be one of the biggest renewable energy transactions in Spain, one of Europe’s top markets for renewables. It would also boost Masdar’s presence in the Spanish and Portuguese markets as the UAE’s renewables giant looks to have a global installed capacity of 100 GW by 2030.

Earlier this year, Masdar also announced an agreement with Spain’s power firm Endesa to become a partner for 2.5 GW of renewable energy assets in Spain, subject to regulatory approvals and other conditions.

For its part, Brookfield, which has recently raised a record $28-billion infrastructure fund, the world’s largest closed-ended private infrastructure fund, and the largest fund ever raised by Brookfield – expects to raise billions of U.S. dollars in a clean energy-focused fund in the emerging markets.

Earlier this week, Brookfield Asset announced an initial closing of $2.4 billion for the Catalytic Transition Fund (CTF), marking a significant milestone in the target to raise up to $5 billion for deployment towards clean energy and transition assets in emerging markets.

The fund was launched at COP28 with up to $1 billion of catalytic capital provided by ALTÉRRA funds, the world’s largest private investment vehicle for climate finance based in the UAE.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com