Global energy player Total has acquired Energías de Portugal’s (EDP) portfolio of two gas-fired combined cycle power plants.
The two gas-fired combined cycle power plants are said to have an electricity generation capacity of nearly 850MW.
The portfolio also includes 2.5 million business to consumer (B2C) customers.
Total chairman and CEO Patrick Pouyanné said: “This is a major new step in Total’s ambition to become a broad energy company.
“This transaction enables Total to become one of the key players in the energy market in Spain, covering a wide spectrum from LNG imports to power generation from renewables and gas, as well as gas and electricity supply.
“Our ambition is to be able to bring a competitive offer from our productions to the Spanish consumers, drawing on the digital and commercial know-how developed in France by Total Direct Energie and in Belgium by Lampiris.”
Additionally, the deal is expected to support Total’s objective to achieve carbon neutrality for its businesses across the globe by 2050.
Financial details of the deal have not been divulged by both the companies. Completion of the deal is subject to regulatory approval and is expected to close by the end of 2020.
Pouyanné added: “This transaction is fully consistent with the Group’s strategy of profitable growth across the gas and low carbon electricity value chain in Europe, in line with our new ambition to get to Net Zero Emission by 2050.
“With this deal Total will reach 8.5 million gas and power customers in Europe from 2021, on track with its ambition to serve over 10 million customers by 2025.”