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Spain’s Repsol said it’s now a major market player

Spain's Repsol said it's now a major market player
UPI

June 28 (UPI) — An investment bank said Thursday the decision by Spanish energy company Repsol to buy low-emissions assets supports growth in a market lauded for green goals.

Repsol announced this week it would acquire the low-emissions electricity assets from rival Viesgo for about $870 million. The company said the transaction supported its goal of developing a low-emissions portfolio that’s in line with broader efforts to counter the impacts of climate change.

“We see Spain’s power market as particularly competitive, but the announced acquisition should help Repsol progress towards its ambitions,” RBC Capital Markets stated in an overview emailed to UPI.

The assessment follows analysis from consultant group Wood Mackenzie that found new energy sector directives proposed by a new government under Spanish Prime Minister Pedro Sanchez could usher in a new phase of energy transition efforts.

The new government said it would phase out coal in power generation by 2025. Following in the footsteps of Germany, Spain could also gradually shut down its nuclear power capacity by the end of the next decade.

Repsol in the acquisition puts more hydroelectric power in its portfolio in northern Spain, the country’s coal belt. It also takes on natural gas plants from Viesgo, which keeps its coal-fed power plants in the transaction.

Repsol said gas-powered plants are an important bridge to a low-carbon future. Hydroelectricity, meanwhile, could be a buffer when other renewable sources are unavailable, it stated.

Through the deal, the Spanish company improves its foundation in the retail market with the addition of about 750,000 customers. It aims to have 2.5 million by 2025.

“Repsol will become a major player in the Spanish electricity market,” its statement read.

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