In a strategic move that underscores its commitment to streamlined operations, Repsol has officially exited its stake in Hecate Energy, a major US-based renewable developer, after months of legal and commercial uncertainty. The Spanish energy giant’s July 2025 announcement closes the chapter on a multi-year joint venture and legal tussle, aligning Repsol’s North American ambitions with a more unified, in-house approach.

From Strategic Entry to Full Exit

Repsol first entered the US renewables landscape through a 40% stake in Hecate Energy in 2021, seeking exposure to a vast pipeline of solar, wind, and storage projects. However, following Hecate Holdings’ 2024 attempt to trigger a put option to sell their remaining 60% stake, the deal spiraled into a valuation dispute and a subsequent lawsuit in Delaware. The disagreement was rooted in claims of material breach and failed negotiations. Fast forward to July 2025, both parties reached an out-of-court settlement where Repsol sold its 40% stake back to Hecate Holdings, ending legal proceedings and severing all ownership ties.

Hecate Regains Full Control as Repsol Refocuses

This exit allows Hecate to regain full autonomy, eliminating shareholder conflict and realigning its internal strategy. Hecate, with a formidable 48 GW development pipeline, will now operate solely under its founding shareholders. The company’s operations span 30+ states and major US power markets like ERCOT and PJM, including landmark projects such as the 674 MW Cider Solar Farm in New York and the 1 GW Harley Hand hybrid project in Texas. Hecate’s ability to secure long-term PPAs with top-tier offtakers like Google, Amazon, and NYSERDA speaks to its robust project pipeline and commercial credibility.

ConnectGen Becomes Repsol’s US Growth Engine

Following its full divestment from Hecate, Repsol will now channel its US renewable energy ambitions through ConnectGen—a fully owned subsidiary acquired from Quantum Capital. Specializing in onshore wind and energy storage, ConnectGen complements Repsol’s strategy of building fully controlled platforms to meet its global goal of reaching 20 GW of renewable capacity by 2030. This pivot away from minority stakes toward wholly owned assets ensures tighter execution, reduced friction, and more agile capital deployment in an increasingly competitive market.

As Repsol consolidates and Hecate regains independence, both companies are better poised to execute their next phase of growth. Want more insights into evolving renewable M&A trends? Subscribe to our newsletter or explore our latest clean energy intelligence.

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