Brookfield is lining up the sale of Spain-based solar & battery storage X-Elio, according to market sources.

The group has in recent weeks begun sounding out prospective financial advisors to oversee the transaction, which is forecast to launch in 2026, sources said.

The IPP owns and operates around 1.2 GW of solar PV capacity, spread across Spain, Italy, Germany, Chile, Mexico, Honduras, the US, Japan and Australia, and has a further circa 2.4 GW under-construction, according to the company website. It is also bringing forward a multi-GW development pipeline globally.

In Italy, the group has to date brought 146 MW of solar into operation and is currently building a further 116 MW which is due online within the next 12 months. It has a further 1.1 GW of solar and 1.8 GW of BESS at various stages of development in the country.

X-Elio in Q1 2024 ramped up its presence in the battery storage market with the purchase alongside Nature Infrastructure Capital of a majority stake in German BESS developer Eco Stor.

In the US X-Elio, alongside other multi-laterals in the US, has been mostly active in ERCOT.

The below NPM Interconnection Queue Applications chart (desktop only) highlights X-Elio’s US pre-operational project pipeline based on NPM’s Market Research and includes six projects which have reached an advanced stage.

Sales climate

The prospective sale of X-Elio comes against a challenging backdrop for renewable energy platform M&A, with a number of high-profile deals having failed to cross the finishing line over recent quarters.

This is in part due to concerns over falling power prices and increased capture price risk, predominantly in the solar PV space, which in turn has had a knock-on effect on asset valuations.

Macquarie launched the sale of its Cero Generation platform in summer 2024, but ultimately failed to find a buyer despite purportedly drawing interest from entities such as Antin Infrastructure Partners, Equinor, EQT, KKR, PGGM and Wren House, while this year PSP Investments and OTPP opted to spike the sale of Cubico Sustainable Investments, despite drawing offers from KKR-owned ContourGlobal and a Qualitas Energy-led consortium.

Abdul Latif Jameel is meanwhile still believed to be looking to divest Spain-based solar IPP FRV, although US-based Apollo, the mooted frontrunner on the transaction since Q1 this year, is yet to confirm a deal.

Brookfield X-Elio background

Brookfield acquired the remaining 50% stake it did not already own in X-Elio from KKR in Q1 2023. At the time, the group’s valuation had been put at close to EUR 2.5bn, including EUR 500m-plus of debt.

KKR initially acquired an 80% stake in X-Elio from Spain’s Riberas family in 2015. It subsequently sold a 30% stake in 2019 to Brookfield, with the latter at the same time acquiring the Riberas’ remaining 20% interest.

Brookfield declined to comment.