China Three Gorges Corp. has reached an agreement to buy operational wind and solar farms in Spain with a combined capacity over 400 MW.
The renewable portfolio includes 11 winds farms and one solar plant. The deal, which is still pending on customary regulatory approvals and expected to be concluded ahead of the end of the second quarter this year, will make sure Three Gorges acquire 100% of the portfolio from a consortium led by Corporacion Masaveu. Other sellers include Korys Group, Exus Management Partners and a group of Portuguese minority investors.
It's unclear how much Three Gorges will pay for the deal, sources said the Chinese company had been discussing a valuation of about 400 million euros ($486 million) to 500 million euros.
The deal came after the purchase last year for 13 Spanish solar farms with the combined capacity over 500 MW from X-Elio Energy SL, which is owned by Brookfield Renewable Partners LP and buyout firm KKR & Co.
As one of China's largest clean-energy operators, Three Gorges has kept investing in overseas renewable assets. Especially since the development of renewable energy has become a global consensus, the company, in addition to large hydropower projects in China, has been working on the development in wind and solar industries in the world.
In 2016, the group won 80% of Germany's 288 MW offshore wind power project through an international bid at a price of 630 million euros, becoming the first Chinese enterprise to hold overseas offshore wind power projects that have been in operation.
The Chinese company was also among the final bidders for Grupo T-Solar, a green energy firm with a presence in Spain and Italy, which was acquired in December by Cubico Sustainable Investments Ltd. for 1.5 billion euros.
Three Gorges said the latest investment will enhance its presence in Europe in addition to investments in Portugal, Germany, the UK and Greece, as well as Spain.
(Writing by Alex Guo Editing by Alex Guo)
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