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Global investment firm Brookfield has increased its involvement in the Australian energy industry by acquiring 100% of Spanish renewable energy business X-ELIO, which has several assets in Australia.

50-50 partner KKR agreed to sell its interest in X-ELIO, acquired in a joint venture agreement with Brookfield in 2019, to Brookfield Renewable.

Founded in 2005, X-ELIO is involved in the development, construction, financing and operation of solar PV plants, storage and hydrogen projects around the world, and is on track to build or develop 3 GW of renewables projects in total across Spain, Italy, the U.S., Australia, Japan and Latin America by the end of this year.

In Australia X-ELIO owns the recently completed 200 MW Blue Grass Solar Farm in Queensland, and a number of solar farm projects in development at Tallygaroopna (30 MW), Congupna (68 MW), Wunghnu (96 MW) in Victoria, Jimbour East (200 MW) in Queensland, and Forest Glen (90 MW) and Holbrook (300 MW) in NSW.

X-ELIO CEO Lluis Noguera said, “X-ELIO’s journey to become a leading developer with diversified global presence would not have been possible without our shareholders’ focus on execution and long-term value creation. Now, with the continued support from Brookfield, we are in an optimal position to continue growing our solar and storage business while tackling new opportunities in the energy transition space”.

The transaction is subject to customary closing conditions and is expected to close during the second half of 2023.

Full ownership of X-ELIO will see Brookfield increase its position in the Australian energy industry. The global investment firm has made an offer to purchase ASX-listed Origin Energy’s energy markets business, Australia’s largest integrated generation and retail company, in a consortium with EIG-controlled MidOcean Energy which would acquire Origin’s integrated gas division.

Announcing the bid in November last year, Brookfield Renewable said the deal was consistent with its “strategy of investing in opportunities where we can generate a meaningful contribution to the energy transition, including the responsible decommissioning of existing thermal assets and build out new clean generation for the benefit of all stakeholders”.

On 22 February the consortium made a revised offer of $8.90 per share which the Origin Energy board conditionally supported pending further negotiations.

Brookfield also last year made an unsuccessful tilt at ASX-listed AGL Energy in partnership with Mike Cannon-Brookes’ investment vehicle Grok.