Iberdrola has already completed the sale of Scottish Power Generation, its conventional generation assets in the United Kingdom, to the Drax group by 702 million claimed today in a statement sent to the National Securities Market Commission (CNMV).
Iberdrola explained that the materialization of this operation already announced in October 2018, occurred on December 31, once the company had met the conditions precedent it was subject to.
The price is subject to the usual adjustments in such these operations once Scottish Power Generation balance sheet is available at the end of the year as well as to a mechanism for sharing risks and benefits based on the level of capacity payments not received by Scottish Power Generation until September 30, 2019.
The company explained that in the coming weeks it will assess the impact of this operation on the consolidated results for fiscal year 2018, once more information about the aforementioned adjustments becomes available.
The divestment of the traditional generation business in the United Kingdom is part of the plan to rotate assets worth 3,000 million euros, under the Company’s 2018-2022 Strategic Perspectives.
This operation comes in the heels of the recent sales of the gas storage business in the United States, the minority stake in Tirme and the solar thermal power plant in Puertollano -Ciudad Real (the last two divestments in Spain).
2,700 MW of capacity installed or under construction by Iberdrola in the United Kingdom
The operation also makes Scottish Power, the British subsidiary of Iberdrola, the first 100% renewable energy utility in the country.
Iberdrola already has a wind capacity either installed or under construction of 2,700 MW in the United Kingdom, as well as a pipeline of projects exceeding 3,000 MW.
Of this capacity, the majority -2,900 MW- corresponds to offshore wind projects. These new developments would add to the East Anglia One park, currently under construction, which will have a capacity of 714 MW and will be the world largest offshore wind farm when it becomes operational in 2020.
The United Kingdom is a key market for Iberdrola and one of its present and future pillars. Iberdrola expects investments of £ 5,200m until 2022, aimed mainly at increasing renewable capacity, developing more and smarter networks and offering more personalized and efficient solutions to its customers.