Spanish energy company Repsol has entered into an agreement with a renewables developer, Ibereólica Renovables to gain access to more than 1.6GW renewable energy portfolio in Chile.

Under the terms of the deal, the company will have access to the projects in operation, construction or development of more than 1.6GW in 2025, with the possibility to another 1GW in 2030.

Both the companies will set up a 50/50 joint venture in Chile that will be strengthened with €168m ($194.6m) through a capital increase from Repsol.

Repsol will have option to take control of JV from 2025

The funds, to be disbursed by Repsol through 2023, will enable the development and construction of five renewables projects with a total installed capacity of over 1.6GW that include three wind and two solar projects over the next five years.

From 2025, Repsol will have the option to take control of the joint venture as per the agreement with Ibereolica Renovables.

The company said that the Chilean portfolio will comprise 52% of wind projects and the remaining 48% will be solar projects.

Of the total portfolio, 78MW of renewable power capacity is already in operation, the 110 MW under are construction and the 1,500 MW in the advanced development stage that will be operational in 2025.

Additionally, the joint venture will build an additional 1GW of renewable energy projects by 2030 that will located mainly in the northern regions of Antofagasta and Atacama.

Repsol said: “In a challenging environment due to the coronavirus pandemic, Repsol is reinforcing its commitment to renewable generation and takes a significant step towards becoming a net zero emissions company in 2050.”

In June this year, Repsol announced plans to invest approximately €80m to develop two emissions-reductions projects in Spain.