In July 2023, EDPR sold nine Spanish wind farms to Verbund for $491 million. Three years earlier, EDPR had bought those same farms as part of Viesgo's renewables business. By the second sale the farms were three years older. Yet Verbund paid more than half as much again per MW as EDPR had.
Key takeaways
- EDPR agreed on 25 July 2023 to sell a 257 MW portfolio of nine operating wind farms in Spain to Verbund for an enterprise value of $491 million.
- The price equals about $1.91 million per MW, compared with the implied $1.25 million per MW EDPR paid in 2020 for the 511 MW Viesgo renewables business the farms came from.
- Seven of the nine farms receive Spain's regulated remuneration scheme (RECORE) for about seven more years on average, and the other two sell power on the merchant market.
- Enerdatics records 29 Spanish wind M&A transactions from January 2022 to June 2024, of which nine carry a disclosed value, and the Verbund deal is the highest price per MW among the operating-asset deals in that set.
- The sale formed part of EDPR's $7.7 billion asset rotation programme for 2023 to 2026, which sells mature assets to fund new development.
What exactly did Verbund buy?
Verbund bought nine operating onshore wind farms spread across several regions of Spain, with an average age of 14 years. They are not new assets. An average age of 14 years puts most of their start dates around the late 2000s.
Their revenue comes in two forms. Seven farms sit inside RECORE, Spain's regulated return scheme for older renewable assets. Under RECORE, assets earn a regulated return on their investment on top of what they make selling power, for a fixed regulatory life. On average, these seven have about seven years of that life left. The remaining two farms have no regulated support and sell all output at market prices.
The portfolio also carries something that does not show up in today's output. Enerdatics' record notes that the sites have potential for repowering and for added hybrid solar capacity. Repowering means replacing old turbines with fewer, larger and more efficient ones on the same site, using the grid connection that is already in place.
Why is the price higher than what EDPR paid in 2020?
When EDPR agreed to buy Viesgo's renewables business from Macquarie-managed funds in July 2020, it paid an enterprise value of $661 million for 511 MW. That implied $1.25 million per net MW. The business had 24 wind farms and two mini hydro plants, 84% in Spain and 16% in Portugal. About 87% of the capacity was regulated, with an average age of 13 years and roughly seven years of regulated life remaining.
At $1.91 million per MW, Verbund paid about 53% more per MW than that 2020 average. Three things help explain the gap.
First, the two prices are not measured on the same portfolio. The 2020 figure covers all 511 MW, including the Portuguese farms and the hydro plants. The 2023 sale covers 257 MW of Spanish wind only. On Enerdatics' figures, the farms sold carried an average age of 14 years in 2023, while the full portfolio averaged 13 years back in 2020. That suggests EDPR sold farms from the younger end of what it bought.
Second, the regulated income held its value. Both records show roughly seven years of RECORE life remaining on average. A buyer in 2023 was paying for a similar regulated runway to the one EDPR bought in 2020.
Third, the record highlights repowering and hybrid solar potential. A site with a proven wind resource, permits and an existing grid connection can be rebuilt with modern turbines. Part of the value therefore sits in the site, not in the turbines standing on it today.
Why would Verbund want older wind farms in Spain?
Because the assets give it an operating base and a repowering pipeline in one purchase. Verbund is an Austrian utility building a position in Iberia. Enerdatics also records Verbund buying 171 MW of Spanish wind under construction from Capital Energy in March 2022. Adding nine operating farms gives the company cash flow now and sites it can upgrade later.
The deal also came with a large advisory team. PwC, Arup and KPMG advised Verbund on the financial side, with Garrigues as legal adviser. King & Wood Mallesons and Addleshaw Goddard advised EDPR.
Enerdatics' data shows how rare a priced deal like this is. Of the 29 Spanish wind transactions Enerdatics records between January 2022 and June 2024, only nine disclose a value, and only four of those involve operating assets. Naturgy's purchase of ASR Wind from Ardian in May 2023 is the closest match: 422 MW of regulated operating farms built between 2005 and 2012, with about six years of regulated life left, plus a 435 MW hybrid pipeline, for an enterprise value of $706.5 million. Even if all of that value is assigned to the operating farms, it works out at about $1.67 million per MW. Greencoat Capital paid $44.84 million for 24 MW from Alfanar in April 2022, or about $1.87 million per MW. Verbund's $1.91 million per MW sits at the top of that range.
What does the deal signal for Spanish wind?
The deal shows that older Spanish wind farms are being priced on two things: regulated income for the next few years, and what the site can become after that. The age of the equipment matters less than the quality of the site and its grid connection.
It also shows how utilities are using asset rotation. EDPR bought these farms in 2020, held them for three years and sold them at a higher multiple to fund new projects. The same pattern runs through EDPR's later disposals, including its exit from Greek wind and its sale of operating wind and solar assets in Italy. For sellers holding mature Spanish wind with repowering potential, the Verbund price is a useful reference point. For buyers, the main risk is timing: once regulated income ends, the value depends on getting repowering permits and grid capacity approved.
Frequently asked questions
How much did Verbund pay for EDPR's Spanish wind portfolio?Verbund paid an enterprise value of $491 million for 257 MW across nine operating wind farms in Spain. That equals about $1.91 million per MW.
Where did the wind farms come from?They were part of Viesgo's renewables business, which EDPR bought from Macquarie-managed funds in 2020 for an enterprise value of $661 million, or about $1.25 million per net MW across 511 MW in Spain and Portugal.
What is RECORE?RECORE is Spain's regulated remuneration scheme for renewable assets. It pays a regulated return on investment on top of market income for a fixed regulatory life. Seven of the nine farms in this deal receive it for about seven more years on average.
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