Business Express is an online portal that covers the latest developments in the world of business and finance. From startups and entrepreneurship to mergers and acquisitions, Business Express provides reporting on the stories that matter most to business leaders and decision-makers.The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

Spain’s Grenergy to expand in US under $2.8 billion plan

By Pietro Lombardi

MADRID (Reuters) – Spain’s Grenergy plans to more than double its U.S. solar power generation projects pipeline in the next three years under a 2.6 billion euro ($2.8 billion) investment strategy.

Spanish energy firms such as renewables giant Iberdrola and oil major Repsol have increased their focus on the United States as they try to take advantage of massive subsidies included in the Inflation Reduction Act (IRA).

“The U.S. is the future,” Grenergy operations chief Pablo Otin said during its first capital markets day on Tuesday.

“The U.S. is, right now, the most desirable market to be in …. It’s predictable, it’s stable and it gives you long-term visibility,” he said, with reference to the IRA.

Grenergy has yet-to-be-built renewable projects in the U.S. with potential for 4.7 gigawatts (GW) of capacity, and wants to increase its pipeline to more than 10 GW by 2026. Of this, roughly 1.1 GW will be in operation or under construction.

Overall, U.S. projects will account for around 30% of its installed capacity in 2026, net of sales.

Grenergy’s expansion is part of a growth strategy aimed at raising its installed solar capacity to 5 GW by 2026, while renewable energy storage capacity would reach 4.1 GWh. Excluding assets earmarked for sale, the targets are 3.5 GW and 3 GWh respectively.

Like other energy companies, Grenergy will raise cash to fund new projects with disposals. It plans to sell 350-450 megawatts (MW) of solar capacity every year and 1 GWh of storage, netting more than 600 million euros by 2026.

“M&A is something we have been doing every single year from our inception and it is intensifying,” Chief Executive David Ruiz de Andrés said.

Don't miss out on any breaking news or insightful opinions!
Subscribe to our free newsletter and stay updated on the go!

By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email.

“We have plenty more projects to build and rotate,” he said.

While the largest energy firms in Spain tend to sell minority stakes and keep control of renewable assets, Ruiz de Andrés told journalists at a press event following the presentation that the company was open to both divesting 100% of renewable portfolios and selling minority holdings.

Asked about a potential dividend, he replied: “With all the investment we have, it’s not going to happen anytime soon”.

Grenergy is aiming for earnings of between 250 million euros and 300 million euros in 2026 from its energy business.

“The strategy … has moved from a solar model towards solar plus batteries where the company could sell electricity during the more expensive hours of the day and be less impacted by solar price cannibalisation and curtailments with more stable long term cash flows,” RBC analyst Fernando Garcia said.

($1 = 0.9168 euros)


(Reporting by Pietro Lombardi; Editing by Alexander Smith and Mark Potter)


Recent Post: