Spain's Ibedrola sells hydro, gas-powered assets in U.K. for $929M

Oct. 16 (UPI) -- Spain's Iberdola, an electricity generation company that also operates in the U.K., U.S., Brazil and Mexico, said Tuesday that it was selling to the U.K.-based Drax group $929 million worth of hydro- and gas-powered assets.

Iberdrola's President Ignacio Galan said the company's energy production in the U.K. -- where it owns the unit Scottish Power-- is now completely emission free.

The transaction represents 2,566 megawatts of traditional power generation.

Iberdrola plans to expand its wind power generation capacity in the U.K., where it will invest $6.9 billion within the next four years.

Iberdrola already has wind power capacity in the U.K. representing 2,700 MW -- including projects installed and under construction. In addition, it has a portfolio of future projects representing another 3,000 MW, the company said.

Will Gardiner, CEO of Drax, said that the purchase "makes great financial and strategic sense" for the group not only because it expands the group's portfolio of low-carbon assets but also as it adds reliable sources.

"It's a critical time in the U.K. power sector," he said. "As the system transitions towards renewable technologies, the demand for flexible, secure energy sources is set to grow."