(Bloomberg) -- State-owned China Three Gorges Corp. is in talks to buy a 170-megawatt renewable portfolio in Spain from Portuguese company Greenvolt-Energias Renovaveis SA, according to people with knowledge of the matter.
The portfolio comprises wind and photovoltaic assets at an advanced greenfield development stage and is valued at close to €200 million ($218 million), the people said, asking not to be identified as the negotiations aren’t public. No final agreement has been reached and the talks may still fall apart.
The acquisition would allow CTG to expand its footprint in the Iberian peninsula — a market it regards as strategic — at a time when clean-energy assets are drawing investors’ attention across Europe. High interest rates and power price volatility have negatively impacted asset valuations, making targets more attractive.
Spokespeople for CTG and Greenvolt declined to comment.
News website El Confidencial reported earlier the Portuguese company has hired PricewaterhouseCoopers LLP as an adviser for the deal.
CTG already owns a 20% stake in Energias de Portugal, as well a 1.3-gigawatt renewable portfolio in Spain, where it’s snapped up about 500 megawatts of assets from X-Elio Energy SL and a 619-megawatt portfolio from Nexwell Power, among other deals.
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