• Ortega triples energy investments: Amancio Ortega’s Pontegadea triples its investments in renewable energy, reaching €693 million in 2023.
• Strategic diversification: The shift marks a strategic diversification from Ortega’s core fashion and real estate ventures.
• Significant growth in renewables: Pontegadea now holds stakes in multiple renewable assets, primarily in Spain and France.

Amancio Ortega, the founder of Zara, is making waves in the renewable energy sector. His investment firm, Pontegadea, nearly tripled its investments in renewable energy projects last year, allocating €693 million ($766.87 million) to wind, solar, and other energy assets in Spain and France. This is a substantial increase from the €273 million invested in 2022, demonstrating Ortega’s commitment to diversifying his fortune beyond his fashion empire and real estate ventures.

The move aligns with Inditex’s, Zara’s parent company, new environmental targets set for 2030, which aim to reduce the company’s environmental footprint and address regulatory demands. While Pontegadea has been traditionally known for investing heavily in real estate—acquiring logistics centers for global companies like FedEx and Amazon, and luxury buildings in the U.S. and Europe—this pivot to renewable energy represents a significant shift in strategy.

Ortega’s control over 59.29% of Inditex’s capital, through Pontegadea Inversiones and Partler Participaciones, has been instrumental in this diversification. His family office received €2.2 billion in dividends from Inditex in 2023, which has fueled further investments. In addition to energy assets, Pontegadea expanded its real estate portfolio in 2023 by purchasing properties in Ireland, the Netherlands, and Luxembourg, bringing the total value of its real estate holdings to over €13 billion.

Pontegadea’s investments aren’t limited to property. In 2023, the firm reported minority stakes in 13 energy assets, mostly located in Spain. These stakes were secured through various deals with Repsol, a major energy firm, to acquire interests in wind and solar farms. Furthermore, Pontegadea holds minority stakes in three wind energy parks in France, specifically in the Montagne d’Ardèche, Taillades Sud, and Champagne Picarde regions.

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This strategic diversification into renewable energy is not entirely new for Pontegadea. In 2022, the firm acquired a 5% stake in Spanish gas grid operator Enagás and its hydrogen and renewables unit, Enagás Renovable. The continued expansion into the energy sector reflects a broader trend among investors who are increasingly looking to align their portfolios with sustainable and environmentally friendly practices.

Despite these significant investments, Pontegadea has declined to provide further details about its annual reports, maintaining a level of discretion typical of Ortega’s business dealings. As the global economy pivots towards sustainability, Ortega’s moves in the renewable energy sector could position him as a key player in this rapidly evolving industry.