Spain-based independent power producer Iberdrola and the sovereign fund of Norway, managed by Norges Bank Investment Management, have committed to a joint investment of €1.2 billion (~$1.3 billion) to develop 1,265 MW of new renewable energy capacity in Spain.

The collaborative effort will comprise 20% wind and 80% solar power installations.

Currently, 137 MW of the total capacity is already operational in Castilla-La Mancha and Aragon, while the remaining projects are in various stages of development.

The upcoming projects will be spread across different regions of Spain, including Andalusia (358 MW), Extremadura (343 MW), Aragon (175 MW), Castilla y León (102 MW), Madrid (55 MW), Murcia (50 MW), and Castilla La Mancha (45 MW).

Upon completion, this portfolio of renewable energy projects will generate electricity equivalent to the annual consumption of more than 700,000 households.

Iberdrola will maintain a majority stake of 51% in renewable energy assets. It will be responsible for controlling and managing the assets, providing essential services such as operation and maintenance, and other corporate support.

The companies also have plans to expand their alliance by adding over 500 MW of renewable energy projects in the Iberian Peninsula.

Iberdrola has an existing capacity of nearly 19.5 GW in Spain. The company plans to expand its renewable energy portfolio by constructing an additional 4.1 GW before 2025.

Moreover, Iberdrola aims to invest an extra €6 billion (~$6.4 billion) in Spain by the end of 2025, contributing to the growth of its supply chain and creating additional jobs. As of September, Iberdrola’s global assets reached a significant value of €170 billion (~$181 billion).

Norges Bank Investment Management holds a stake of over 3% in Iberdrola and has been a key shareholder for over seven years.

Recently, Iberdrola received  €150 million (~$159 million) million) green loan agreement from the European Investment Bank to develop a portfolio of renewable energy projects in Italy.

Last November, Iberdrola announced an investment plan of €47 billion ($50 billion) for energy transition between 2023 and 2025. Of this, €17 billion ($19 billion) will be invested in renewables to deliver 52 GW of installed capacity by 2025.