Repsol has agreed to form a joint venture (JV) with Grupo Ibereólica Renovables to manage a portfolio of renewable energy projects in Chile. The projects may generate up to 1.6GW in 2025, possibly exceeding 2.6GW in 2030.

As per the terms of the agreement, the two companies will create a JV equally divided between them.

Repsol will pay $195m (€168m) before 2023. It will also have the option to take full control of the JV from 2025.

Repsol’s funds will strengthen the JV’s resources and enable construction of three wind farms and two solar farms over the next five years. These will have a total installed capacity of more than 1.6GW.

The JV will split is portfolio of assets to 52% wind and 48% solar generation. Of these, 78MW of capacity is already in operation.

Additionally, construction continues on 110MW of assets, and 1.5GW are said to be in advanced stages of development. Operations on these will start in 2025.

Another 1GW renewable capacity is being planned for 2030.

Development of the projects focuses on Chile’s northern regions of Antofagasta and Atacama.

The agreement will now seek regulatory approval before completion. Repsol says this deal will help it advance towards net-zero emissions by 2050.

In March this year, Repsol expanded its renewable energy portfolio with an 860MW wind farm project. Located in the northern region of Aragon, the Delta 2 project consists of 26 wind farms.