October 17, 2018 / 8:40 AM / in 4 months

UPDATE 1-UK's ContourGlobal in talks to buy Iberdrola's solar power plant

(Adds details of deal, context, background)

Oct 17 (Reuters) - Power generator ContourGlobal Plc said on Wednesday it was in talks with Spanish utility Iberdrola SA over a potential deal to buy the Milan-listed company’s 50-megawatt solar power plant in Spain.

Power generation companies worldwide are under regulatory pressure to move towards renewable energy and reduce dependence on coal. The UK government has set 2025 as the deadline to end “unabated” coal-fired power generation.

Newswire Renewables Now reported here in June, citing a Spanish daily, that Iberdrola was seeking a buyer for its 50-MW Puertollano solar power plant in Spain's Castilla-La Mancha, adding that the plant could fetch between 100 million euros and 150 million euros ($115.6 million-$173.5 million).

ContourGlobal, which has been beefing up its renewables portfolio, said in February it had agreed to buy Spanish engineering and renewable energy firm Acciona’s solar power plants in a deal worth 962 million euros.

ContourGlobal, which has been embroiled in a tussle with The World Bank, said last week that it would proceed with plans to build a 500 megawatt (MW) coal-fired plant in Kosovo despite the World Bank’s decision not to back the project.

British power producer Drax said on Tuesday it would buy a group of Scottish gas, hydro and pumped storage power plants from Iberdrola for 702 million pounds ($922 million).

Shares of ContourGlobal, which has 100 power plants around the world, were up 5.7 percent at 184.9 pence by 0812 GMT on the London Stock Exchange. ($1 = 0.8648 euros) ($1 = 0.7613 pounds) (Reporting by Muvija M in Bengaluru; Editing by Vyas Mohan and Gopakumar Warrier)

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