Verbund buys a portfolio of Spanish renewable assets

Turbines are seen in Austrian hydropower producer Verbund’s Limberg power station near Kaprun, Austria August 31, 2016. REUTERS/Leonhard Foeger

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MADRID, May 9 (Reuters) – Austrian hydroelectric utility Verbund (VERB.VI) said on Monday it had acquired a portfolio of renewable energy assets in Spain from local private equity fund Q-Energy for an undisclosed sum. .

The assets include the operation of photovoltaic power plants with a combined capacity of 82 megawatts (MW) and projects planned to have an eventual capacity of up to 4,000 MW, the company said. All are located in Castile La Mancha in central Spain and sunny Andalusia in the south.

The deal is part of Verbund’s plan to generate 20-25% of its electricity from photovoltaic sources and offshore wind farms.

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Three sources familiar with the matter said the wallet was valued at 1 billion euros ($1.1 billion). Read more

Energy companies’ appetite for renewable assets is growing under pressure from investors and governments to tackle climate change.

Competition for assets is heating up as ambitious green goals have pitted oil and gas companies against traditional utilities in the race to generate renewable energy.

Oil giant Shell and Spanish utility Naturgy (NTGY.MC) were considering bids for Q-Energy’s assets, the sources said last month.

($1 = 0.9490 euros)

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Reporting by Christina Thykjaer and Andres Gonzalez Editing by Inti Landauro and Mark Potter

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