Portuguese fossil fuel giant creates renewables unit

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From pv magazine Spain

Last week, Portuguese gas and oil producer Galp Energía held a meeting to present its new strategy and its 2019 financial results.

The company's net profit fell 21% in 2019, which prompted it to launch an internal reorganization effort, with a new customer-centered approach and a new division dedicated to renewable energy.

“Galp is committed to developing a sustainable portfolio based on the generation of electricity from renewable sources, with an investment of between 10% and 15% of the group destined to this energy source and with the objective of capturing new business opportunities,” the company said. “These investments represent a natural coverage for the Iberian activities, in line with the trend of global electrification.”

Galp recently acquired a 2.9 GW portfolio of solar energy projects in Spain from Spanish construction group ACS, with a secured network connection and 914 MW already in operation. These projects, together with others that are under development on the Iberian Peninsula, will provide 3.3 GW of capacity by 2023. The company claims that the capital returns of the portfolio will be greater than 10%.

Although its installed capacity in the coming years will be based on its existing portfolio, Galp's ambition is to expand its renewable footprint to 10 GW by 2030, with a particular focus on the Iberian Peninsula.

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