Galp agrees €2.2bn solar PV projects deal with ACS Group

Portuguese-headquartered energy company Galp has announced an agreement with ACS Group to acquire, develop and build solar photovoltaic projects in Spain with a total capacity of 2.9 gigawatts (GW).

Publicado Friday, January 24th 2020
Galp agrees €2.2bn solar PV projects deal with ACS Group

Carlos Gomes da Silva

The deal was valued at €2.2 billion.

The assets transferred include photovoltaic plants under operation with an installed capacity of 900 megawatts.

The transaction also includes “projects under way or in the licensing stage to bring the total installed generating capacity to 2.9 GW by 2023, enough to supply the average consumption of 1.8 million households”, according to a Galp statement.

Galp aims to finance the additional developments in the 2020-23 period through project finance and “will look for possible partnership opportunities in the renewables sector”.

The statement added that the projects would help “avoid the emission of an equivalent 87 million tons of CO2.”

The deal should be closed in the second quarter of 2020. At that time, 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”, the statement said.

It added: “The transaction is in line with Galp’s strategic goal to allocate about 40 per cent of its investment to business opportunities related to the energy transition. The company’s average annual net investment by 2022 remains within the committed range of between €1 billion and €1.2 billion per year.

King & Wood Mallesons (KWM) advised Galp on the deal. The KWM team included partners Roberto Pomares and Gonzalo Olivera, and senior associates Gonzalo Fenández and Alberto Artés. Clifford Chance advised ACS. The Clifford Chance team was led by partners Luis Alonso, José Guardo and Javier García de Enterria – it also included senior associate Pablo Murcia, associate Pablo Hernandez, associate Patricia Arribas, senior associate Eduardo Sanchez and associates Marta Martinez and Juan Ignacio Guillen.

Galp CEO Carlos Gomes da Silva (pictured) said: “This is a major step in our commitment to move towards a low-carbon economy. This transaction underpins Galp’s standing as an integrated energy company, bolstering a competitive portfolio of renewables and new businesses as set forth in our strategic guidelines.” 

Galp board member Susana Quintana-Plaza said: “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.”

Pomares commented: "This is Galp’s largest M&A deal to date. It is also one of the most important transactions within the renewable energy sector in Spain and is confirmation of Spain's leadership in the clean energy sector."