Norwegian fund wants to invest in more renewable assets from Iberdrola

The largest sovereign wealth fund in the world, Norway’s, is in talks to purchase a 49% ownership in a new portfolio of power plants with a 500 megawatt capacity from Spanish energy provider Iberdrola (IBE.MC), according to a statement released on Wednesday.

In a deal for approximately 600 million euros ($660 million), the $1.4 trillion fund agreed to purchase a 49% ownership in a larger portfolio of solar power plants and onshore wind farms with an installed capacity of about 1.3 gigawatts from Iberdrola in January.

Iberdrola stated in a statement that the agreement being negotiated would broaden this relationship.

Spain is luring investors to renewable energy projects as the government works to reach its targets for decreasing greenhouse gas emissions by 2030 thanks to its sunny plains, severely dammed rivers, and wind-swept hills.

After selling holdings in more advanced projects, local energy corporations like Iberdrola and Repsol (REP.MC) have been raising money to invest in new ones.