Repsol cuts 2030 renewable and low-carbon targets, citing higher costs, regulatory uncertainty, and prioritizing profitability-driven investments in energy transition strategy.
Spain’s leading energy company, Repsol, has revised its long-term renewable energy ambitions, lowering several of its 2030 targets as it responds to shifting market dynamics and economic realities. The updated outlook was disclosed alongside the company’s 2025 financial results, reflecting a more cautious and profitability-driven approach to the energy transition.
Over the past several years, Repsol has been actively transforming its business model. Since 2018, it has steadily expanded its renewable energy portfolio, investing in wind, solar, and hydroelectric power projects both within Spain and internationally. This expansion formed a key pillar of its broader strategy to evolve from a conventional oil and gas producer into a diversified, multi-energy company. Alongside renewable power generation, the company has also been directing investments toward emerging low-carbon technologies, including green hydrogen and alternative fuels designed to reduce emissions.
However, the company has now recalibrated its expectations. Repsol currently aims to achieve more than 10 gigawatts (GW) of installed renewable capacity by 2030, with the majority of these assets expected to be located in Spain and the United States. This represents a significant reduction compared to its earlier goal set in 2021, when it had targeted approximately 20 GW of renewable capacity by the end of the decade—double its revised objective.
The decision to scale back growth projections is closely tied to changing economic conditions. According to the company, higher development and financing costs have made large-scale renewable projects more challenging to execute. Additionally, evolving tax incentive structures in the United States have influenced investment decisions. As a result, Repsol is placing greater emphasis on financial discipline, prioritizing projects that meet stricter profitability thresholds rather than pursuing rapid expansion at any cost.
Despite the revised targets, the company has already made notable progress. By the end of 2025, Repsol had reached an installed renewable capacity of 5.8 GW, indicating steady growth even as it adjusts its forward-looking strategy.
In parallel, Repsol has also lowered its ambitions for low-carbon fuel production. The company now expects to produce between 1.6 and 1.8 million tons of biofuels annually by 2030, alongside 0.7 to 0.8 terawatt-hours (TWh) of biomethane. These figures are significantly below its previous targets of 2.4 to 2.7 million tons of biofuels and 2.1 to 2.3 TWh of biomethane. The downward revision reflects both market demand uncertainties and evolving regulatory frameworks, particularly in the area of renewable hydrogen.
Indeed, Repsol had already scaled back its green hydrogen plans earlier, citing slower-than-expected market development and regulatory delays. These challenges have made it difficult to justify aggressive investment in hydrogen infrastructure at this stage.
Overall, the company’s revised strategy underscores a broader trend within the energy sector, where firms are balancing sustainability goals with financial viability. While Repsol remains committed to its transition toward cleaner energy, its updated targets highlight a more measured and economically grounded path forward.
