Galp bags EIB loans to finance 2.1GWp of solar in Spain and Portugal

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email
Galp is aiming to reach 12GW of operational renewables capacity by 2030. Image: Galp.

Oil and gas company Galp has secured loans from the European Investment Bank (EIB) to support the construction of more than 2.1GWp of solar projects across Spain and Portugal.

The largest agreement consists of an EIB green energy loan of up to €325 million (US$378 million) to finance the construction of around 2GWp of utility-scale PV plants in Spain that are expected to break ground in the next three years. These installations will have capacities ranging from 24MWp to 449MW.

The EIB, which is the European Union’s lending arm, said the portfolio could be supported by a further €325 million that could be signed in a project finance format at a later stage.

Alongside this, the EIB will provide a €40 million green energy loan for Galp to build and operate four interconnected solar plants with a total capacity of 144MWp in the Algarve region of southern Portugal.

Having created a joint venture last year with construction firm ACS Group to develop 2.9GWp of solar projects in Spain, Lisbon-headquartered Galp has since started construction work on its first utility-scale PV plant in Portugal.

The company last week entered Brazil’s renewables sector with a deal to acquire and develop solar projects with a total capacity of 594MWp. It is aiming to reach 12GW of operational renewables capacity by 2030.

“Our plan to reshape our portfolio is already underway, with Galp accelerating the integration of low-to-no carbon energy solutions in our businesses. The support from EIB is key to help us increase the pace of such projects’ development,” said Galp CEO Andy Brown.

The EIB said in 2019 that it would end financing for fossil fuel energy projects from the end of 2021. This year the bank has provided independent power producer Solaria up to €54 million through a project finance agreement for seven solar plants in Spain totalling 261MW.

It also provided a loan package to a subsidiary of Total Eren to support the development of a 100MW solar farm in Uzbekistan.

On the latest deal, EIB vice-president Ricardo Mourinho Félix said: “We are delighted to support Galp in its decarbonisation pathway and join forces to promote climate action and renewable energy generation in both Spain and Portugal.”

Read Next

December 3, 2021
Solar investor and asset manager NextEnergy Capital Group (NEC) has secured backing from the UK Infrastructure Bank for a new fund that aims to raise £500 million (US$663 million) to invest in subsidy-free solar power plants in the UK.
December 1, 2021
Tech major Amazon has added a further 2GW to its committed utility-scale solar PV capacity, adding projects in the US and Europe to its renewables portfolio.
November 29, 2021
Austrian utility Verbund is acquiring a 147.6MWp PV project in southern Spain from renewables developer BayWa r.e. as part of the company’s planned solar expansion.
November 26, 2021
Portugal has launched its latest solar auction that is set to allocate 262MW of floating PV to be installed at seven dams across the country.
November 23, 2021
Italian oil major Eni is planning an initial public offering (IPO) of its renewables, retail and mobility units that will scale up solar capacity as part of a clean energy push.
November 19, 2021
Utility-scale renewables developer Intersect Power has secured US$2.6 billion in financing for the construction and operations of a portfolio of solar and energy storage projects in California and Texas.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
February 1, 2022
London, UK
Solar Media Events
February 23, 2022
London, UK
Solar Media Events
March 23, 2022
Austin, Texas, USA
Solar Media Events
March 29, 2022
Lisbon, Portugal