Portuguese oil and gas firm Galp has sealed a deal to acquire 2.9 GW of solar power capacity in Spain, making it the leading solar power player in Iberia, it claims.
In a €2.2 billion deal with ACS Group, Galp will purchase 900 MW of operable solar photovoltaic (PV) capacity, as well as a 2 GW development pipeline that is due to start operating by 2023.
The acquisition will accelerate the group’s renewable energy investment strategy, and makes it’s a leader among other oil and gas firms diversifying into clean energy technologies.
The deal should be closed in the second quarter of 2020, subject to certain conditions. 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.
Galp will finance the additional developments in the 2020-23 period through project finance and will look for possible partnership opportunities in the renewables sector, it added.
“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 board member.