Iberdrola to sell Polish unit to Energa, PGE

Spanish energy group Iberdrola has reached an agreement to sell its 75% stake in Iberdrola Renewables Polska to Polish companies Energa Hydro, a subsidiary of Energa, and PGE Grupa Energetyczna (PGE) for €203m.

The transaction, which is subject to regulatory approvals, supports the company’s 2012-14 plans to divest non-core assets worth nearly €2bn to strengthen the group’s balance sheet.

The remaining 25% in the wind unit is owned by the European Bank for Reconstruction and Development (EBRD).

Iberdrola Renewables Polska owns five operating wind farms with a total installed capacity of 184.5MW.

PGE will buy three wind farms with 70.5MW capacity, while Energa will acquire 114MW of wind farms in the northern region of the country.

The holding company sold non-core assets worth €1.1bn in the last one year.

These assets include sale of 32 operating onshore wind farms in France to EDF Energies Nouvelles, MEAG, ERGO and GE Energy Financial Services, and seven wind facilities in Germany to MVV Energie AG.

The company earlier sold US-based The Energy Network, which owns Hartford Steam, to Energetix; NYSEG Solutions to Direct Energy; gas distribution assets in Spain; and 13.25% stake in Gas Natural Mexico.

Iberdrola plans to continue its divestment programme in order to reduce debt and maintain its credit rating.