Iberdrola has reached an agreement with the British Drax Group for the sale of its entire stake in Scottish Power Generation for about 800 million euros, the company reported. The power company chaired by Ignacio Sánchez Galán is derived from a total installed capacity of conventional electricity generation of 2,566 megawatts (MW) in the United Kingdom.
The operation is part of the plan to rotate assets worth 3,000 million euros announced by the energy group within its strategic plan 2018-2022. The company estimates that the sale will have "a positive impact" on its results for this year, which "will be quantified and reported at the close of the transaction."
The execution of the operation is subject to approval by the general meeting of shareholders of Drax Group and the approval of the competition authorities of the United Kingdom.
Maintains its commitment to the United Kingdom
The president of the company, Ignacio Sánchez Galán, wanted to highlight Iberdrola's commitment to the United Kingdom, "a key market for us and one of the present and future pillars of the group."
"We will invest in it some 5.9 billion until 2022, mainly to increase our renewable capacity, develop more networks and smarter and offer more personalized and efficient solutions to our customers," he said.
With this divestment, Iberdrola becomes the first 100% renewable energy company in the United Kingdom, a country where it already has a wind capacity of 2,700 MW installed or under construction, in addition to a portfolio of projects exceeding 3,000 MW.
The operation on Scottish Power Generation is in addition to the sale of the gas storage business in the United States and the minority stake in Tirme, with the total amount of transactions announced in 2018 exceeding 1,000 million euros.
In February, Iberdrola launched its strategic plan for 2018-2022, which includes an asset rotation plan for 3,000 million euros and is open to possible agreements with partners for renewable projects ('partnering green'). The rotation is part of the path towards the decarbonization of the company and the change of polluting plants in its portfolio due to a clear commitment to renewables.