Repsol has agreed to sell a stake in its 777MW US solar and storage portfolio to Stonepeak for $340 million.
The transaction for a 46.3% shareholding values the portfolio, which spans New Mexico and Texas, at approximately $735 million.
Including $60 million previously raised through tax equity proceeds, the total value rises to around $795 million.
The assets include the Frye solar project in Swisher County, Texas (pictured), with an installed capacity of 632MW, and the Jicarilla solar and storage complex in Rio Arriba County, New Mexico, which combines 125MW of solar and 20MW/80MWh of battery storage.
All projects have secured long-term revenue contracts as part of Repsol’s strategy to ensure sustainable profitability.
The deal marks Repsol’s first partnership for renewable assets in the US and advances its financial optimisation strategy in low carbon generation.
“We are very proud to start a partnership with Stonepeak in our first renewable asset rotation in the US market,” said João Costeira, executive managing director of low carbon generation at Repsol.
“Once again, our portfolio has confirmed its attractiveness to leading investors, validating our strategy on renewables,” he added.
“This investment represents another important step in delivering much-needed cost-effective and sustainable electricity to our domestic power grid at a time when communities need it most,” said Anthony Borreca, senior managing director at Stonepeak.
The transaction is expected to close in the third quarter of 2025, subject to customary regulatory approvals.
Nomura Greentech served as exclusive financial adviser and Latham & Watkins served as legal counsel to Repsol.
Greenhill & Co., a Mizuho affiliate, served as exclusive financial adviser and Vinson & Elkins acted as legal counsel to Stonepeak.
Repsol currently has close to 4GW of operating renewable capacity globally, with a development portfolio of 60GW.
In the US, Repsol also owns the 629MW Outpost PV project in Texas, which is partially operational, and two further solar projects under construction: Pinnington (825MW) and Pecan Prairie (595MW).