Spain’s Repsol buys renewable energy assets in Chile
Spanish energy company Repsol continues its expansion in renewable energy with the signing of an agreement with Grupo Ibereólica Renovables that gives Repsol access to a portfolio in Chile of projects in operation, construction or development of more than 1,600 megawatts (MW) in 2025, with the possibility to exceed 2,600 MW in 2030.
Repsol and Grupo Ibereólica Renovables will create a joint venture in Chile with each party holding 50%, through an increase of capital of EUR168 million (USD194 million) to be disbursed by Repsol through 2023.
The funds incorporated in the increase of capital will strengthen the joint venture’s resources and will allow five renewables projects to be developed and built over the next five years in Chile, with a total installed capacity of more than 1,600 MW, comprising three wind farms and two solar farms.
Grupo Ibereólica Renovables is an international independent Spanish business group, with an important wind, solar and hydraulic project development platform. It currently has 402 MW in operation, 415 MW under construction in Chile and 8,400 MW in development in Chile, Spain, Peru and Brazil. The group has a solid and extensive experience in each of the phases of development, engineering, construction and operation of renewable energy generation projects. To date Grupo Ibereólica Renovables has invested more than USD1.5 billion in the development of power generation projects using renewable sources.
With this agreement, Repsol gains access to quality assets and a good future pipeline in a stable market such as Chile, already well consolidated in the renewable sector and for which growth is forecast thanks to the existence of areas with abundant sun and wind resources.
The joint venture in Chile will have a diversified portfolio of assets (52% wind and 48% solar) which are distributed into 78 MW of renewable generation capacity already in operation, 110 MW under construction, 1,500 MW in advanced stages of development which will be operational in 2025 and another 1,000 MW planned for 2030, located mainly in the northern regions of Antofagasta and Atacama.
The agreement gives the multi-energy company the option to take control of the venture from 2025.
In a challenging environment due to the coronavirus pandemic, Repsol is reinforcing its commitment to renewable generation and takes a significant step towards becoming a net zero emissions company in 2050.
The agreement is subject to the usual authorizations for this type of transaction.