Enel and Masdar sign new agreement for 446 MW of photovoltaic plants operating in Spain, strengthening their partnership

Enel S.p.A. (“Enel”) informs that EGPE[1], a Group company controlled through Endesa[2], signed an agreement with Masdar[3], the UAE’s clean energy leader, for the sale to the latter of a minority stake, equal to 49.99% of the share capital, in EGPE Solar 2[4], a vehicle encompassing four Endesa photovoltaic assets operating in Spain, for an overall installed capacity of 446 MW.

The transaction foresees the recognition of a consideration by Masdar of 184 million euros for the acquisition of 49.99% of the share capital of EGPE Solar 2, an amount subject to adjustments customary for these kinds of transactions. The enterprise value on a 100% basis of EGPE Solar 2 recognized in the agreement is equal to 368 million euros.

This new agreement follows the Enel’s partnership with Masdar finalized in December 2024 which relates to a 2 GW portfolio of other solar assets already operating in Spain as of the date of the signing of the previous agreement.

The transaction is set within the framework of a long-term partnership with Masdar, which also foresees 15-year power purchase agreements (PPAs) under which Endesa, through a subsidiary, is expected to acquire the energy generated by the photovoltaic plants involved in the deal.

Transaction is expected to generate a reduction of the Enel’s consolidated net debt of 184 million euros in 2025, while it is set to bear no impact on Group economic results as Enel will continue to maintain control and fully consolidate EGPE Solar 2 upon closing of the transaction.

The closing of the deal, which is expected to occur during the second quarter of 2025, is subject to a number of conditions precedent customary for these kinds of transactions, including clearance from the Spanish Government on foreign investments.

The transaction is in line with the “Partnership” business model outlined by Enel in its 2025-2027 Strategic Plan with the aim to retain control of strategic assets while maximizing productivity and returns on invested capital.