Portuguese energy company, Galp, has reached an agreement with the ACS Group to acquire, develop and build projects for the generation of photovoltaic energy in Spain, thus becoming the main solar power producer in the Iberian Peninsula.
Courtesy of Galp
Assets include photovoltaic power plants under operation with an installed capacity of 900 MW. It also comprises projects under way or in the licensing stage to bring the total installed generating capacity to 2.9 GW by 2023, enough to supply the average consumption of around 1.8 million households. They will also help to avoid the emission of an equivalent 87 million tons of CO2.
“This is a major step in our commitment to move towards a low-carbon economy. This transaction underpins Galp’s standing as an integrated energy company, bolstering a competitive portfolio of renewables and new businesses as set forth in our strategic guidelines,” said Carlos Gomes da Silva, Galp’s CEO.
The transaction, which includes the acquisition, development and construction of the projects, has a total value of €2.2 billion by 2023. Galp aims to finance the additional developments in the 2020-23 period through project finance and will look for possible partnership opportunities in the renewables sector.
The deal should be closed in the second quarter of 2020, subject to certain usual conditions. At that time, Galp is expected to make a payment of €450 million and to assume liabilities amounting to €430 million from the project finance for solar plants under operation.
“This acquisition allows the integration and development in partnership with a worldwide leader in project implementation of a state-of-the-art solar power portfolio that will speed-up our growth in the renewables sector and new business models,” said Susana Quintana-Plaza, Galp’s board member in charge of this business unit.
The transaction is in line with Galp’s strategic goal to allocate about 40 percent of its investment to business opportunities related to the energy transition. The company’s average annual net investment by 2022 remains within the committed range of between €1.0 billion and €1.2 billion per year.