Spanish energy company Repsol is to take a 50% stake in a portfolio of renewable energy projects in Chile totalling over 2600MW.
The deal will see Repsol form a 50:50 joint venture with Grupo Ibereolica Renovables, through an increase of capital of €168m to be disbursed by Repsol through 2023.
Repsol also has the option to take control of the venture from 2025.
Under the terms of the deal, the company will have access to projects in operation, construction or development of more than 1.6GW in 2025, with the possibility to exceed 2.6GW in 2030.
The funds incorporated in the increase of capital will strengthen the joint venture’s resources and will allow three wind farms and two solar plants built over the next five years.
The portfolio will comprise 52% wind and 48% solar, with 78MW already in operation, 110MW under construction, 1.5GW in advanced stages of development which will be operational in 2025.
A further 1GW is planned for 2030, located mainly in the northern regions of Antofagasta and Atacama.
“Repsol thus 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 company said.
The agreement is subject to the “usual authorisations for this type of transaction”, Repsol said.