Galp takes over 2.9 GW Spanish solar portfolio

Galp has reached an agreement with the ACS Group to acquire, develop and build solar photovoltaic projects in Spain. The transaction provides access to an installed capacity of 2.9 GW by 2023. The acquisition accelerates renewables investment strategy, promoting the energy transition.

Assets include photovoltaic power plants under operation with an installed capacity of 900 MW. It also comprises projects underway 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 1.8 million households. They will also contribute to avoiding the emission of an equivalent 87 million tons of CO2.

The transaction, which includes the acquisition, development, and construction of the projects, has a total value of EUR2.2 billion (US$2.4 billion) by 2023. Galp aims to finance 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 EUR450 million (US$398.8 million) and to assume liabilities amounting to EUR430 million (US$476.6 million) from the project finance for solar plants under operation.

The transaction is in line with Galp’s strategic goal to allocate about 40% of its investment to business opportunities related to the energy transition.