Repsol plans to boost renewables capacity to up to 10GW by 2027

Spanish oil & gas major Repsol as part of a strategic update plans to boost its renewables generation capacity to between 9 and 10GW by 2027 through organic development, with an investment of €3bn ($3.26bn) to €4bn.

"Over the next four years we will stay the course on the strategy we presented in our previous plan to address the energy transition and we will focus on all the types of energy that meet our customer’s needs,” Repsol CEO Josu Jon Imaz said.

“We are convinced that this approach, in which decarbonisation is an attractive opportunity to create value, grow and be profitable, is the most appropriate one for us."

Half of the renewable capacity will be in the Iberian Peninsula and 30% in the United States, after consolidating the pipeline of Hecate and ConnectGen, Repsol said. The company also plans to expand its presence in Chile and Italy, with a combined installed capacity of 1.5GW by 2027.

To reach its targets, Repsol said it is optimising the financial structure and profitability of the projects through the rotation of the asset portfolio and the incorporation of partners or project financing, to maximise value generation and ensure returns of over 10%.

So far, the company has been successful in reaching those returns at its major renewables projects, as for example at the 335MW Delta 1 wind complex, which reached a return of 14%, Repsol said.

The company published its new strategic plan as it presented its 2023 financial results, which showed a 47.9% drop in low carbon generation adjusted income to €75m, mainly due to lower results in combined cycle power stations that were partially compensated by higher results in renewables.

Repsol’s overall net income last year receded 25.5% to €3.17bn, mainly due to lower oil and gas realisation prices, higher amortisation and higher production costs that were partially offset by higher volumes, lower royalties, lower exploration costs as well as lower taxes due to a lower operating income.