Spain's Forestalia to beef up own renewables portfolio to 1 GW in 2023

Spanish renewables developer Forestalia expects to close the year with over 400 MW of own power generation capacity at home, and reach close to 1,000 MW installed in 2023, as part of the effort to expand its build-to-hold portfolio.

For the better part of its trajectory, the company has been better known for developing wind and solar portfolios and selling them to notable international and domestic investors, such as Lightsource BP, Copenhagen Infrastructure Partners (CIP), Bruc Energy and Repsol SA (BME:REP), among others. Forestalia says it has so far promoted 3,000 MW of projects for wind, solar and biomass-based power in Spain, but its own generation portfolio currently stands at over 300 MW, including stakes.

Asset sales have been a deliberate strategy that Forestalia devised to finance projects to hold. The sale transactions slowed down as Forestalia started gaining financial muscle, general manager Carlos Reyero said in a statement released by the company.

Over the past three fiscal years, Forestalia earned revenues of EUR 863.8 million (USD 832.5m), pocketing EUR 782.8 million from development agreements with third parties and EUR 80.9 million from the sale of electricity, according to its figures. The company also claims that two international investment banks recently valued it at EUR 1.4 billion to EUR 1.45 billion.

(EUR 1.0 = USD 0.964)

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