Portugal-based Galp has signed an agreement with the Actividades de Construcción (ACS) to acquire the latter’s 2.9GW solar portfolio in Spain.

Under the transaction, Galp will acquire assets including solar power plants under operation with an installed capacity of 900MW.

In addition, the transaction also includes projects under development or in the licensing stage, making the total installed generating capacity to reach 2.9GW by 2023.

Galp CEO Carlos Gomes da Silva 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  to finance the additional developments in 2020-23 period

Galp said that the transaction, which includes the acquisition, development and construction of the projects, is valued at a total of €2.2bn by 2023.

In addition, the acquisition is expected to strengthen the company’s position as a solar power producer in the Iberian Peninsula.

The company said that it intends to finance the additional developments in the 2020-23 period through project finance and is seeking partnership opportunities in the renewables sector.

Galp is expected to make a payment of €450m during the closing of the transaction, which is expected in the second quarter of 2020, subject to certain usual conditions and will assume a total of €430m in liabilities from the project finance for solar plants under operation.

The company said that the PV power plants included in the acquisition are expected to supply adequate power for the average consumption of 1.8 million households, and reduce emission equivalent to 87 million tonnes of CO2.

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.”