Renewable Energy M&A: Iberdrola sells 49% stake in 350 MW Wikinger offshore wind farm for $705 million

published on 15 September 2022

The stake was purchased by the Swiss investment firm Energy Infrastructure Partners (EIP). The asset is valued at $1.45 billion in the transaction. Iberdrola will retain 51% ownership of the project and will continue to provide operations and maintenance. The transaction is EIP's second major offshore wind acquisition, following the acquisition of a 25% stake in Equinor's 385 MW operational Arkona wind farm in 2019.

The Wikinger project, located in the German Baltic Sea, was inaugurated in October 2018 and represents a $1.4 billion investment. The asset operates under Germany's feed-in tariff (FiT) regime, which guarantees a fixed price for all electricity generated until 2037. Unlike other fixed-price offtake agreements, the wind farm and other assets in the scheme can sell excess power at market prices whenever it exceeds the tariff.

Iberdrola entered the German offshore wind space through the Wikinger project in 2017. The company is currently building the 476 MW Baltic Eagle project, which is also located offshore Germany. Iberdrola's global offshore wind pipeline includes projects in various stages of development in countries such as the United Kingdom, the United States, Ireland, and Sweden, as well as an expanding portfolio in Japan, Taiwan, the Philippines, and South Korea.

The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.

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