Spanish renewables developer ACCIONA Energía has agreed to sell its hydroelectric portfolio, Acciona Saltos de Agua, SL group (ASA), to Elawan Energy for €287m ($310m).

The strategic sale will create a debt-free transaction perimeter and is expected to yield a significant capital gain for ACCIONA Energía.

Elawan CEO Dionisio Fernández stated: “By adding this hydropower portfolio to our existing renewable energy sources, we aim to further stabilise our future power production and build a long-term earnings base.”

ASA’s portfolio comprises 23 hydroelectric plants with a combined installed capacity of 175MW, located across Aragón, Cantabria and Cataluña.

The assets represent 20% of ACCIONA Energía’s hydro-installed capacity and produce 500 gigawatt hours annually.

The portfolio is a mix of reservoir and run-of-river plants, with the former accounting for 77% of capacity.

The sale is contingent on foreign direct investment approval and will be finalised before the end of 2024.

ACCIONA Energía forecasts a capital gain of €170m from the transaction.

The hydroelectric plants have long-term concession agreements, with an average remaining concession life of 23 years.

Crédit Agricole served as financial advisor to ACCIONA Energía for the deal.

ACCIONA Energía CEO Rafael Mateo said: “This transaction highlights the quality of our generation portfolio and represents an important milestone in our asset rotation strategy, bringing to light the divergence between public and private market valuations.”

In September 2023, ACCIONA Energía purchased the 280MW Forty Mile wind farm located in Bow Island, Forty Mile County, Alberta, Canada from Renewable Energy Systems (RES) Canada.

RES will continue its involvement in the project as the balance of plant construction contractor for ACCIONA Energía, which plans to bring the wind farm into operation by early 2025.

Forty Mile, developed by RES, will be constructed in two phases. The first phase features 49 turbines with a combined generating capacity of 280MW.