Spanish energy company Repsol announced an agreement with Grupo Ibereólica Renovables, providing Repsol with access to a large-scale portfolio of renewable assets and projects in Chile.

Under the terms of the agreement, through an increase in capital by Repsol of €128 million over 3 years, the two companies will form a 50/50 joint venture consisting of projects in operation, construction, or development of more than 1,600 MW in 2025, growing to potentially more than 2,600 MW in 2030. Repsol’s announced capital contribution will fund 5 new projects over the next five years, including three wind farms and two solar farms. The agreement gives Repsol the option to take control of the venture from 2025.

Repsol is amongst a class of large energy companies, with roots in oil and gas production, that has pledged to forge a new path as the world transitions to a low carbon future. Last year, the company announced that it was orienting its strategy towards achieving net zero emissions by 2050, in line with the Paris Agreement. Repsol stated that it was the first company in its sector to adopt this goal. Since that time, the company has embarked on several energy transition-linked projects, including beginning construction of the Valdesolar and Kappa solar facilities, and the launch of other decarbonization projects.

The new agreement will move Repsol closer to its goal to generate 7,500 MW of low carbon electricity by 2025 (recently raised from its prior goal of 3,000 MW).

The new joint venture will consist of a roughly even split of solar (48%) and wind (52%) assets, with 78 MW currently in operation, 110 MW currently under construction, and another 1,500 MW in advanced stages of development which will be operational in 2025.