Repsol to get hold of half of 1.6-GW-plus wind, solar portfolio in Chile

Spanish oil-and-gas major Repsol SA (BME:REP) on Thursday said it has signed an agreement with compatriot Grupo Ibereolica Renovables to gain access to a 1,688-MW wind and solar portfolio in Chile in 2025, with a possibility for another 1,000 MW in 2030.

Repsol and the renewables developer will set up a 50/50 joint venture (JV) in Chile, which the oil company will beef up with EUR 168 million (USD 194.3m) through a capital increase.

The funds, to be disbursed by Repsol through 2023, will enable the development and construction of three wind and two solar projects over the next five years.

From 2025 onwards, Repsol will have the option to take control of the JV as agreed with Ibereolica Renovables.

Of the total that is in the Chilean portfolio, 78 MW of renewable power capacity is already in operation. The wind and solar projects that will be operational in 2025 amount to 110 MW under construction and 1,500 MW in the advanced development stage, Repsol specified in its earnings release today.

The JV plans to build an additional 1,000 MW of projects by 2030.

Repsol today reported a loss of EUR 2.48 billion for the first half of 2020 following a period of record-low prices of oil. Nevertheless, it reiterated its commitment to its burgeoning renewables business and raised the target for low-carbon electricity generation to 7,500 MW by 2025.

The company is currently building one wind and two solar projects in Spain. So far, it has 2,952 MW of total installed renewables capacity and 2,300 MW of projects in different phases of development.

The new agreement will mark the second time Repsol steps outside Spain to take part in the renewables development. The energy company is a shareholder in the 25-MW WindFloat Atlantic floating wind farm located off the coast of Portugal.

(EUR 1.0 = USD 1.157)

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