Bank insurance group Crédit Agricole Assurances and energy investor Energy Infrastructure Partners (EIP) have reached an agreement for the acquisition of a 25% stake in Repsol Renovables, a subsidiary of Repsol. The value of the company including debt has been set at 4.39 billion euros. As a result, the Spanish group has pegged the sale at 905 million euros. The transaction, subject to the usual closing conditions and regulatory approval, is expected to be completed in the fourth quarter of this year.

Repsol Renovables currently has more than 1.6 GW of installed renewable capacity. This portfolio is made up of wind farms, solar assets and hydroelectric plants in Spain, Chile and the USA. The firm aims to reach 20 GW in 2030, working together with its new partners. Furthermore, Crédit Agricole Assurances and EIP plan to further diversify assets with a view to entering new markets and incorporating other alternative technologies, such as offshore wind.

Long-term purchase agreements
In addition to the Spanish company's soundness, the new partners were attracted by other factors, such as its long-term power purchase agreements with large companies such as Microsoft and Amazon, which shield it from the volatility of the energy markets.

Repsol explains that the Madrid-based company will still control the division. Repsol Renovables and its subsidiaries will thereby continue to be consolidated within the Spanish group's accounts.

Philippe Dumont, CEO at Crédit Agricole Assurances, explained, “Fully in line with Crédit Agricole Group’s commitments to prevent  climate change, Crédit Agricole Assurances is actively contributing to a low-carbon economy through its investments in the energy transition. This investment alongside Repsol and EIP is a new step in this, contributing to reach our objective of 14 GW of installed capacity by 2025.”

Growth plans
EIP Managing Partner Roland Dörig is clearly proud of the deal, “We are pleased to provide our investors with the opportunity to participate in a renewables platform of this size and calibre”. Peter Schümers, Co-Head of Investments added that “working together with Repsol will help us to realise our ambitious plans for growth, and for further expanding EIP’s footprint in the Americas.”

Repsol CEO Josu Jon Imaz concluded, “Having partners with the prestige of Crédit Agricole Assurances and EIP join Repsol Renovables reinforces the validity of our strategy and our ambition to be a major player in the energy transition, as well as fulfilling our expectations in this important process. Our goal is to reach an installed capacity of 6 GW by 2025, and 20 GW by 2030. As partners, they share our strategic vision for growth in renewables, as well as contributing their expertise and underlining the value of our growth platform”.

^{Photo: Energy Infrastructure Partners and Crédit Agricole Assurances}