Norway's fund seeks to buy into more of Iberdrola renewable assets

MADRID (Reuters) - Norway's sovereign wealth fund, the world's largest, is in talks with power utility Iberdrola to buy a 49% stake in another portfolio of power plants, with a 500 megawatt capacity, the Spanish company said on Wednesday.

In January, the $1.4 trillion fund agreed to buy a 49% stake in a larger portfolio of solar plants and onshore wind farms with an installed capacity of around 1.3 gigawatts from Iberdrola in a deal worth about 600 million euros ($660 million).

The deal being negotiated would expand that alliance, Iberdrola said in a statement.

With its sunny plains, heavily dammed rivers and wind-swept hills, Spain is attracting investors to renewable energy projects as the government seeks to meet its targets on reducing greenhouse gas emissions by 2030.

Local energy companies such as Iberdrola or Repsol have been raising cash to invest in new projects after selling stakes in the more advanced ones.

($1 = 0.9084 euros)

(Reporting by Inti Landauro)