Iberdrola is looking for a partner to help it develop a 1 GW renewable energy portfolio, according to sources

According to two sources familiar with the situation, Spanish energy company Iberdrola seeks a partner who is willing to purchase a minority interest in a renewables portfolio of about 1 gigawatt.

Sources described the project under the name "Romeo 2.0." This is a portfolio of 1.3 GW wind and solar assets that Norway's sovereign fund will take a 49% share in in 2023, in a deal valued at around 1.2 billion euro ($1.30 billion). The project was called Romeo.

The company would have to sell minority stakes in advanced projects in order to fund new investments. Iberdrola Finance chief Jose Sainz Armada stated last month that the company is working on two to three asset rotation projects, whereby it invests in newer projects by selling stakes from more advanced ones.

Evercore advises the Spanish company, according to one person.

Sources said that the process was still in its early stages. The exact mix of solar and wind assets will determine the valuation. Sources declined to identify themselves because they weren't authorised to talk publicly about this matter.

Iberdrola refused to comment, and Evercore didn't respond to a comment request.

Iberdrola also has partnered in recent years with Masdar, and Japan's Kansai electric power.

(source: Reuters)