(Bloomberg) -- State-owned China Three Gorges Corp. is considering a bid for Spanish clean-energy producer Saeta Yield SA, according to people familiar with the matter.

CTG is exploring the possibility of teaming up with a partner for a potential offer, the people said, asking not to be named discussing confidential talks. The company would need a co-bidder because Saeta owns assets in Portugal, where China already invests in the grid and would face curbs on further expansion, the people said. 

Renewable-energy companies have been drawing investor interest in several European markets, where high interest rates and equipment costs have brought valuations down. Saeta is owned by Brookfield Asset Management Ltd. and operates wind and solar farms across the Iberian peninsula.

Press officers for CTG and Brookfield declined to comment. Saeta Yield didn’t respond to a message seeking comment. 

Brookfield itself is in exclusive talks to acquire a majority stake in French renewable developer Neoen SA, while KKR & Co. in March offered to buy German clean-power generator Encavis AG for €2.8 billion ($3 billion).

In Spain, where electricity prices recently dropped to the lowest in 11 years, solar developer Solaria Energia y Medio Ambiente SA has received takeover approaches as investors look for bargains.

CTG is already present in the country, having acquired a renewable-energy portfolio of more than 400 megawatts in 2021.

Brookfield acquired Saeta in 2018 and took it private. The Madrid-based company had been listed in early 2015 amid an investor frenzy for so-called yieldcos — a type of renewable-energy firm whose plants produce a steady flow of dividends and require low investment.

©2024 Bloomberg L.P.