Last year was a fairly intense one for Spain’s renewable energy sector with transactions valued at around € 4 billion. These include deals like KKR’s buy of a majority stake in Gestamp Solar, Oaktree’s acquisition of Eolia, Cerberus’ buy of Renovalia and GN’s move on Gecalsa etc. And it looks like the flurry of activity is set to continue in 2016. Bridgepoint is looking for a buyer for Bora Wind (acquired in 2012 for €400 million), Plenium could sell Olivento, EDPR could also sell off assets, while Gestamp is looking for partners for its Gestamp Wind business etc. So it is estimated that there are potential deals worth about €4 billion (based on an acquisition price of € 1-2 million per MW of capacity).
According to Bankinter analysts, Spain’s renewables industry is very fragmented with the exception of Iberdrola (with approximately 24% market share) and Acciona (18%).
“So consolidation makes sense and the same thing is happening in the solar energy sector. In addition, various European firms are currently restructuring and considering selling of their Spanish renewable assets. And this will favour corporate moves. That said, the political instability in Spain and in the markets in general could put the brakes on this process.”