Information on the Target

China Three Gorges Spain (CTGS) has recently entered into an agreement to acquire a portfolio comprising 27 solar photovoltaic (PV) plants primarily located in southern Spain. This portfolio includes assets at various stages of development: operating, under construction, and in advanced development. The total capacity of the acquired assets amounts to 619 MW and aligns with CTGS's commitment to enhancing its renewable energy capabilities while supporting Spain's energy transition and decarbonization policy framework.

The assets acquired from Nexwell Power and Ibox Energy consist of two operational solar PV facilities totaling approximately 153 MW, one facility currently under construction with a capacity of around 52 MW, and three late-stage development assets totaling approximately 414 MW, which are slated to come online in the coming years. This transaction marks CTGS's first acquisition of greenfield assets, signifying a strategic expansion into the renewable energy landscape in Spain.

Industry Overview in Spain

Spain has emerged as one of the most promising solar markets in Europe, driven by favorable regulatory frameworks and incentives aimed at accelerating the transition to renewable energy. The Spanish government has committed to ambitious targets for renewable energy generation, with a particular focus on solar power, given the country's favorable conditions for solar energy production.

The country's solar PV market has witnessed remarkable growth in recent years, with significant investments flowing into large-scale solar projects. As a result, Spain has become one of the leading countries in Europe in terms of installed solar capacity, creating a vibrant ecosystem for solar energy development.

Furthermore, Spain's strategic geographic location and abundant sunlight render it an ideal destination for solar energy investments. With strong support from both national and regional authorities, numerous private and public stakeholders are collaborating to promote the deployment of solar technologies and foster innovation in the sector.

The influx of capital into the renewable energy sector is expected to continue as Spain ramps up its efforts to meet strict EU climate targets. This focus on sustainability and green energy initiatives provides a solid foundation for ongoing investment opportunities in the country's solar market.

The Rationale Behind the Deal

The acquisition of 619 MW of solar assets is expected to significantly enhance CTGS's presence in the Spanish renewable energy sector. This strategic move allows the company to align with Spain's robust policy framework aimed at energy transition and decarbonization. By integrating these high-quality assets, CTGS is well-positioned to expand its operational footprint and generate substantial long-term returns on investment.

The partnership with established players like Nexwell Power and Ibox Energy strengthens CTGS's operational capabilities and provides access to a portfolio of projects with significant growth potential. The collaboration also highlights CTGS's commitment to sustainable energy development and its ambition to contribute positively to local communities.

Information About the Investor

China Three Gorges Spain is a subsidiary of CTG Europe, which is part of the CTG Group, the largest clean energy group in China. CTG Group boasts a consolidated installed capacity of 87.6 GW and has over 26,000 employees worldwide, managing total assets worth approximately US$ 148 billion. CTG Europe has been actively expanding its clean energy investments across Spain and other European nations, positioning itself as a key player in the renewable energy space.

CTGS has already established a significant presence in Spain, operating a portfolio with an aggregate installed capacity of 977MW, with 576MW allocated to solar PV assets. The company aims to continue leveraging its expertise and resources to explore new growth opportunities in the renewable sector.

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This transaction represents a strategic and forward-thinking investment for CTGS, given Spain's status as a leading market for solar energy in Europe. The acquired assets are primarily located in regions with strong solar irradiance, offering the potential for high energy yields and thereby promising financial returns in the long run.

Considering CTGS's established operational framework and commitment to sustainability, this deal could serve as a critical building block in the company’s portfolio, allowing for diversification and enhanced competitive positioning in the market.

Moreover, the collaboration with Nexwell Power and Ibox Energy—experienced entities in the renewable sector—ensures that the operational transition and future asset development will be managed effectively, minimizing risks associated with project execution.

Overall, CTGS's acquisition of these solar assets not only aligns with its strategy for growth in the renewable energy sector but also demonstrates a strong commitment to fostering sustainability and supporting energy transition efforts in Spain. With its expertise and resources, CTGS is poised to maximize the value of this investment while contributing to global decarbonization goals.

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