Galp gives up on 24 solar projects in Brazil

Revaluation of assets was due to low energy prices and increased development costs of projects
Galp gives up on 24 solar projects in Brazil
Structure ready to receive solar modules. Image: Pixabay

A Portuguese multinational Galp communicated to the market its withdrawal of 24 photovoltaic projects in Brazil. The information is present in the company's second quarter financial statement, released this week.

O Canal Solar ed Galp to obtain more details about the projects, but the company only justified the decision, claiming that the revaluation of assets was due to low energy prices and the increase in project development costs.

“The questions relate to the reassessment of the development portfolio in the renewables segment, especially in Brazil, as has been communicated by Galp since October 2023. This reassessment reflects the financial discipline and necessary adaptation to current challenging market dynamics, namely structurally low electricity prices and inflation in project development”, he said in a note. 

In October 2021, Galp announced its entry into the Brazilian renewable energy market with the acquisition of two projects in the initial phase of development in the states of Bahia and Rio Grande do Norte, totaling 564 MW of capacity.

At the time, the company had a portfolio of 4,7 GW of renewable energy projects under development or in operation in Portugal, Spain and Brazil, with the goal of reaching 12 GW by 2030.

At the end of 2023, Galp's renewable energy portfolio amounted to 7,1 GW, considering projects in operation (1,4 GW) and under development (5,7 GW). 

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Photo by Wagner Freire
Wagner Freire
Wagner Freire is a journalist graduated from FMU. He worked as a reporter for Jornal da Energia, Canal Energy and Agência Estado. Covering the electricity sector since 2011. Has experience in covering events such as energy auctions, conventions, lectures, fairs, congresses and seminars.

Answers of 4

  1. It is possible that Aneel's decisions through resolutions that favor distributors are one of the reasons for it running away from the Brazilian market.

  2. Does this mean that the value of energy bills in these two states are low? Is that what made GALP's business unfeasible?

  3. And always like this, Brazil only destroys everything that is good for the country. We have the greatest generation potential on the planet, and we could very well be independent of these expensive energies such as thermal electricity and energies from polluting sources. we only have hydro working together with solar and wind, benefiting the entire population. but we don't have to stick with expensive energy sources, and we will continue to create everything that can benefit our people and our country... long live Brazil... This is a country that is moving forward.....

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