Galp’s current renewable generation portfolio consists of c.4 GW in Portugal and Spain, predominantly solar, of which 926 MW were already producing at the end of 2020.
In 2020, Galp entered the solar power market in Spain, signing an agreement with the ACS Group to establish a joint venture aimed at developing a portfolio of solar PV projects with a total energy generation capacity of 2.9 GW. The portfolio includes 914 MW of generation capacity in operation and several projects at different stages of development estimated to be operational by 2024. Galp holds 75.01% of the JV, with a joint control governance structure in place.
In addition, Galp holds a portfolio of 495 MW of solar PV projects in Portugal (144 MW in Alcoutim, 343 MW in Ourique and 8 MW in Odemira) and additional capacity under development in Spain.
Current portfolio under operation also includes a project with 12 MW of installed capacity at a wind farm in Portugal, in which Galp holds a 50.5% stake.
Galp's strategy is to gradually expand its renewable generation portfolio, leveraging on its strong presence in Iberia, and looking to diversify its portfolio and create value.
Galp’s ambition is to develop its renewable generation pipeline which will enable reaching over 4 GW gross operating capacity by 2025 and to gradually expand and diversify its portfolio towards c.12 GW by 2030, exploring opportunities in other geographies, as well as other technologies and storage options.
The renewables business model relies on asset rotation, with Galp aiming at maintaining an average stake of c.50% after production start, as well as a balanced risk exposure, with generation to be predominately based on PPAs and a significantly levered capital structure (60-70%).