Repsol has struck a significant deal with Schroders Greencoat, the renewable energy arm of Schroders Capital, to offload a 49% stake in a Spanish renewable portfolio valued at €580 million ($626 million). This move, the fifth of its kind since late 2021, underscores Repsol’s aggressive strategy to bolster its renewable energy portfolio through strategic partnerships. The portfolio in question comprises eight wind farms, generating 300MW, scattered across Spain’s northern provinces of Huesca, Zaragoza, and Teruel, along with two solar plants in Palencia, contributing an additional 100MW. These assets are slated to commence operations by mid-2025, aligning with Repsol’s ambitious renewable energy goals.
The partnership is not just a financial maneuver but a strategic play to optimize the financial performance of Repsol’s renewable projects. By bringing in external partners like Schroders Greencoat, Repsol aims to leverage expertise and capital to drive growth and efficiency. This deal is particularly noteworthy as it marks the first investment from Schroders Greencoat Europe SCSp Fund, which recently closed its inaugural funding round in November 2024, raising over €220 million. The fund’s first acquisition signals a robust entry into the renewable energy sector, with a clear focus on high-quality assets supported by long-term offtake agreements.
Repsol’s low carbon generation executive managing director, João Costeira, highlighted the strategic importance of this alliance. “The alliance with a partner like Schroders Greencoat, one of the world’s leading renewable infrastructure managers, at a time when there is a wide offer of renewable assets for sale, highlights the quality and attractiveness of our portfolio in the market,” Costeira stated. This partnership not only reinforces Repsol’s position in the renewable energy sector but also sets a precedent for future collaborations.
Repsol’s renewable energy portfolio is already substantial, with 3.7GW of renewable capacity globally and 60GW in various stages of development. Within Spain, the company operates 2.6GW of renewable energy and has over 600MW under construction. This deal is a testament to Repsol’s commitment to expanding its renewable energy footprint and optimizing its existing assets.
Schroders Greencoat portfolio manager Adam Basnett expressed enthusiasm about the partnership. “We are delighted to have made the fund’s first acquisition following the first close. Our partnership with Repsol signifies a first step in our investment strategy, and we look forward to working together to deliver long-term value for our clients with high-quality assets all supported by long-term offtake agreements,” Basnett said. This collaboration is expected to set a benchmark for future investments in the renewable energy sector, emphasizing the importance of strategic partnerships and long-term value creation.
The deal also comes on the heels of Repsol’s July 2024 partnership with EDF Renewables on offshore wind tenders in Spain and Portugal, further cementing its position as a key player in the renewable energy landscape. As the energy sector continues to evolve, such strategic alliances will be crucial in driving innovation, efficiency, and sustainability. This news is likely to spark further debate and investment in the renewable energy sector, as companies look to replicate Repsol’s success in forging strategic partnerships and optimizing their renewable energy portfolios.
