Repsol Curtails Renewable Ambitions Amid Strategic Reassessment
Repsol is set to update its strategic projections for 2026-2028 during a Capital Markets Day scheduled for March 10. This adjustment is driven by changes in the macroeconomic, regulatory, and competitive environment, prompting the company to modulate its medium-term objectives while preserving its long-term vision.
According to Chief Executive Josu Jon Imaz, the company aims to align its targets with current regulatory frameworks and market conditions, reaffirming that its core principles- shareholder returns, financial discipline, and a solid balance sheet- remain unchanged. This strategic realignment indicates a cautious approach amidst evolving industry dynamics.
One of the notable shifts involves the reduction of Repsol's renewable energy target for 2030. Previously set at 20,000 MW, the company has scaled back its goal to just over 10,000 MW, effectively halving its original ambition. Despite this, Repsol maintains a commitment to expand its renewable capacity, now focusing on this revised figure.
Since entering the electricity sector in 2018 through the acquisition of Viesgo, Repsol has commissioned approximately 6,000 MW, predominantly in Spain and the United States. In 2025 alone, 2,200 MW became operational, including photovoltaic parks in Italy and the first complete project in Chile. The total renewable assets consist of over 3,000 MW of wind and solar capacity, with partnerships involving Pontegadea, Schroders Greencoat, Stonepeak, Crédit Agricole Assurances, and Energy Infrastructure Partners.
Repsol's renewable fuels production capacity is also revised downward from 2.2 million tonnes to between 1.6 and 1.8 million tonnes, a 27% reduction from initially planned figures. This includes capacity from assets such as the Cartagena plant, which produces 250,000 tonnes annually, and a forthcoming facility in Puertollano with a 200,000-tonne annual capability. The company's biocombustibles portfolio stands at 1.5 million tonnes currently.
Furthermore, the firm is investing over 800 million euros in the Tarragona Ecoplanta, designed to convert urban waste into renewable fuels, with operations expected to commence by 2029. Additional projects include the Bilbao e-fuels plant, scheduled for full operation by 2027, and the development of new electrolisers in Sines, Petronor, and Cartagena, totalling nearly 600 million euros in investment.
In the area of renewable gases, Repsol now targets a biometano capacity of 0.7-0.8 TWh, a substantial decrease from 2.1 TWh. The hydrogen strategy has also been scaled back, with projections for 2030 revised to between 600 and 700 MW, incorporating significant contributions from biogas. The company has already deployed a 2.5 MW electrolyser at Petronor, with plans for several larger units in Portugal and Spain.
Repsol has also adjusted its circular product production goal from over 150,000 tonnes to between 125,000 and 146,000 tonnes, reflecting a strategic shift in its environmental efforts. The revised targets entail marginally lowered carbon intensity reductions by 2030, from 28 percent to 25 percent, aligning the company response with current market and regulatory realities.