Iberdrola, Spain’s largest electricity group, plans to float part of its renewable energy division as part of a reorganisation that would shield its conventional generating business from the high costs of rolling out new wind farms.
The company, which recently completed the €17.2bn takeover of Scottish Power, said yesterday it had won board approval to float up to 20 per cent of Iberenova, in which it will group its existing 4,500MW of wind energy with the 2,000MW of new capacity assumed through the acquisition.
Iberdrola also has a pipeline of renewable energy projects totalling 38,000MW, half of which is in the US.
Given that the renewables business is valued at above €15bn, the share issue could raise more than €3bn, according to some analysts.
The Scottish Power purchase consolidated Iberdrola as the world’s biggest producer of electricity from wind turbines, ahead of Florida Power and Light of the US.