Sources say that Iberdrola has put a $1 billion sale of solar stakes on hold.

According to two people familiar with the matter, Iberdrola is putting on hold for now its attempt to sell a?minority stake in a Spanish solar energy portfolio of about 1 gigawatt.

One source said that the Spanish company had decided to investigate the sale of its entire portfolio, known as Project Julieta. They were seeking an estimated value of $1 billion.

One person said that the size of the valuation was a problem, and the other noted a waning of interest in formerly the leading bidder.

Iberdrola has said that it does not comment on what they call market speculation.

Solar power in Spain has grown?rapidly' over the last few years. However, the demand for electricity has not kept up, affecting the price that producers receive for their output, and the value of the generating assets.

Asset rotation and partnerships, which include the disposition of non-core assets or mature assets?and the selling of minority stakes have been the key elements of Iberdrola's strategy in recent years.

The company uses the proceeds of such deals to fund new investments in its core businesses, which are increasingly power grids. It has set a goal to raise 13,2 billion euros by 2028. 58% would come from partnerships and the remainder from asset rotation. Three quarters have already been achieved.

It has partnered with a number of companies, including?Japan’s Kansai electric power, Norway’s sovereign wealth fund and Abu Dhabi’s state-owned renewables energy company Masdar. (Reporting and editing by Andrei Khalip, David Holmes, and Pietro Lombardi)

(source: Reuters)