Elawan Energy Acquires Spanish Hydroelectric Company, Acciona Saltos de Agua

Elawan Energy S.L. (“Elawan”), a part of ORIX Group, has entered into an agreement with Spain’s leading renewable energy power producer Corporación Acciona Energías Renovables, S.A. to acquire all shares of Acciona Saltos de Agua, S.L.U. (“ASA”), a hydroelectric power producer, including its three subsidiaries. The transaction is expected to close by the end of this year, subject to regulatory approvals. Elawan Energy has engaged Lazard as financial advisor and Cuatrecasas as legal advisor.

ASA owns and operates 23 hydroelectric power plants with a total capacity of 175 MW in northern Spain, which has abundant rainfall and water resources in the country. The plants use two different power generation methods: storage type that uses dams or balancing reservoirs (totaling 134 MW across 8 locations) which can regulate water flows, and run-off river type (totaling 41 MW across 15 locations). Storage type hydroelectric power generation, in particular, offers the flexibility to control the amount of power generated by adjusting the timing of water release, and by adjusting the output, it is possible to generate power during times of high demand. All power plants have long term concession agreements with the public authorities to use the water required for hydroelectric power generation, and the generated electricity is sold in the wholesale electricity market, providing a stable business over the medium to long term.

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

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”.

Elawan develops and operates solar, wind and mini hydro power plants in 15 countries in Europe, including Spain, as well as North and South America. In addition to the approximately 1.8 GW of power plants currently in operation, it has approximately 8 GW of projects under development (as of June, 2024).