Renewables

As part of Galp’s low carbon strategy, the Company intends to develop its energy generation activities from differentiated and competitive renewable sources.

 

As part of Galp’s low carbon strategy, the Company intends to develop its energy generation activities from differentiated and competitive renewable sources.

Galp’s current renewable generation portfolio consists of c.4.7 GW in Portugal,Spain and, recently, Brazil predominantly solar, of which 927 MW are already producing.

In 2020, Galp entered the solar power market in Spain, signing an agreement with the ACS Group to establish a JV 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.

During 2021, the Company further expanded its solar position in Spain, adding three projects in different stages of development, with total gross installed capacity of c.400 MW.

In addition, Galp holds a portfolio of c.495 MW of solar PV projects in Portugal (144 MW in Alcoutim, 343 MW in Ourique and 8 MW in Odemira).

Current portfolio also includes a project with 12 MW of installed capacity at a wind farm in Portugal, in which Galp holds a 50.5% stake.

In 2021, Galp entered the solar power market in Brazil, through the acquisition of two solar projects under development in the Bahia and Rio Grande do Norte States, with capacities of 282 MWp and 312 MWp, respectively. We expect the projects to reach its Commercial Operation Date before 2025.

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 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 predominantly based on PPAs and a significantly levered capital structure (60-70%).

 

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