Iberdrola has announced a significant expansion of its co-investment alliance with Norges Bank Investment Management, known for managing Norway’s sovereign wealth fund. The parties executed the final agreement in August of 2025. Iberdrola will own 51% of the new portfolio of renewable energy assets. This joint strategy initiative will act as a catalyst for accelerating the Iberia community’s and other unexplored communities’ electrification initiatives. It’s a promising signal about both companies’ commitment to sustainable energy.
As part of the new power purchase agreement Iberdrola will provide Selex Gruppo Commerciale with 1,250 gigawatt hours of clean energy. This partnership is a perfect demonstration of their commitment to innovative sustainable energy solutions. This contract reaffirms Iberdrola’s desire to push further with its renewable capacity additions. It directly advocates for and enables the transition to a low-carbon economy. In 2022, they followed up by creating the first-ever joint venture. This action marks the first important step in achieving Iberdrola’s and Norges’ shared objectives in renewable energy development.
Joint Venture Expansion
The newly signed deal deepens the partnership between Iberdrola and Norway’s sovereign wealth fund. They’re collectively zeroing in on a strong renewable energy portfolio of 2.5 gigawatts. This expansion will bring more than €2 billion ($2.34 billion) in joint investment throughout Spain and Portugal. The joint effort further demonstrates how sustainable, equitable energy solutions are increasingly becoming priorities in both communities. At the same time, it highlights Iberdrola’s dominance in the renewable energy sector.
Iberdrola just brought on line 708 megawatts (MW) of renewable capacity with the completion of two photovoltaic projects in Extremadura, Spain. These two projects, Ceclavin and Tagus XL, bring 328 MW and 380 MW of capacity, respectively. Together with these additions, the operating capacity under the joint venture has increased four-fold, topping an impressive 900 MW. This impressive expansion demonstrates the strong collaboration between Iberdrola and Norges.
Ongoing Commitment to Sustainability
In a local twist, Norges Bank has been a persistent investor in Iberdrola for more than seven years now. At the moment, they only control just under 3% of the company’s stock. Norges upholds an average ownership of 1.5% across all listed companies worldwide and 2.5% in European companies. This deeply entrenched investment relationship is a reminder that we all benefit when we engage in joint projects in the renewable energy space.
The expanded co-investment alliance is expected to drive Iberdrola’s strategic objectives further while supporting Norges’ commitment to sustainable investments. This partnership pinpoints the power of collaboration and a shared vision for a healthier, greener tomorrow through the advancement of clean energy technologies and infrastructure.