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Total Becomes Leading Electricity & Gas Suppliers in Spain

Power News - Published on Fri, 22 May 2020

Image Source: Total Energías de Portugal
Total strengthens its positions in generation and supply of electricity and gas in Spain through the acquisition of the Energías de Portugal’s portfolio of 2.5 million B2C customers and two gas-fired combined cycle power plants, which represent an electricity generation capacity of nearly 850 megawatts. This transaction in Spain follows Total’s entry into the country’s solar market in February with the acquisition of a portfolio of almost 2 gigawatts of renewable power projects to be developed. It allows the Group to implement its growth strategy in the country’s integrated gas and electricity value chain and notably to:
Enter the Spanish B2C market and become the 4th largest supplier of gas and power in the country with residential market share of 12% and 6% respectively
Complement its future production of renewable electricity, which is intermittent, with flexible electricity generation capacities from gas.

This deal serves Total’s ambition to achieve Carbon Neutrality by 2050 for its worldwide business across its production and energy products used by its customers, and to play a major role in the energy transition in Europe, Spain being among the first countries to have adopted an objective of Carbon Neutrality by 2050.

The transaction with EDP is based on an enterprise value of EUR 515 million. It remains subject to conditions precedent, including regulatory approval and should be finalized before the end of 2020. The portfolio of around 2.5 million residential contracts is composed of around 2.1 million held by EDP Commercializadora (100% EDP) and around 0.4 million by CHC, a joint venture between EDP and CIDE, the latter transaction being subject to CIDE agreement. Upon closing, EDP will transfer to Total the 280 employees managing the activities acquired.

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Posted By : Yogender Pancholi on Fri, 22 May 2020
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