The solar projects will help Total to cover all the electricity consumption of its industrial sites in Europe by 2025
French oil and gas giant Total has entered into an agreement with Ignis from Spain for the development of a 3.3GW of solar projects to be located near Madrid and Andalusia in Spain, by 2025.
Ignis, a Spanish solar developer, is expected to place the first project the portfolio into operations in 2022. Total will pay a remuneration to Ignis as the development of the projects progresses.
The transaction follows two agreements signed by Total in February this year with Powertis and Solarbay Renewable Energy for the development of nearly 2GW of solar projects.
In May last year, the company also acquired 2.5 million residential customers from Energias de Portugal and two gas-fired combined cycle power plants with 850MW of capacity, .
The portfolio is expected to help Total to supply all of its industrial sites in Europe by 2025 with solar power. To do this, the company will purchase nearly 6TWh in clean energy annually at its Spanish solar sites through a power purchase agreement with over 3GW in solar projects.
The transaction positions Total as a major player in the country’s energy transition
The transaction takes Total’s portfolio of solar projects under development in Spain by 2025 to more than 5GW.
In addition, it helps the company helps the company in positioning it as a major player in Spanish energy transition.
Spain targets to generate 70% of its electricity from renewables by 2030 and then 100% by the middle of the century.
Total chairman and CEO Patrick Pouyanné said: “Total is becoming one of the main broad-energy players in the country by intervening both in the production of renewable and gas-based electricity and in the distribution of gas and electricity. Our ambition, first and foremost, is to provide a clean, affordable electricity offering to our residential customers in Spain.
“Spain is a priority country for Total in Europe and we fully intend to leverage the market’s growth opportunities that the country offers to respond concretely to the challenges of the energy transition towards carbon neutrality.
“This decision to invest massively in renewable electricity capacity to supply all our industrial operations in Europe with green energy is concrete proof of our decision to move towards decarbonising our European operations in line with our new climate ambition. It also demonstrates the value of integrating production, trading and sales in the electricity chain.”