BP Lightsource has acquired 100MW of Spanish solar projects located in the eastern province of Teruel from renewables developer Forestalia.
Comprising two utility scale solar plants in Calamocha and Cuevas de Almudén, Lightsource BP, half-owned by the oil supermajor, takes on the sites at a late stage of development.
Under the terms of the deal, both parties will work together to progress the projects until they reach financial close and begin construction.
The partnership has already brought to fruition a 250MW solar portfolio in the northeast province of Zaragoza, announced late last year which marked Lightsource BP’s entry into the Spanish market.
Those projects are now in the final stages of construction and due to come into operation towards the end of 2020. The entire 250MW of power generated has been sold to BP’s European Gas and Power business, part of the oil major’s supply and trading business, via a seven year power purchase agreement.
“Working with local partners is an essential business model for Lightsource BP. It enables us to widen our reach quickly but also build upon the really great work already being done at a local level,” said Lightsource BP chief executive for Europe and International Kareen Boutonnat.
BP’s chief executive officer Bernard Looney this month cited the profitable growth of the Lightsource BP joint venture as evidence that the oil supermajor can succeed in clean energy.
BP has a renewables portfolio of 20GW, and the Lightsource BP JV alone boasts a 16GW pipeline at various stages of development, up from just 1.6GW in 2018, said Looney.
He said the 17 projects Lightsource BP has delivered since 2018 had delivered returns in the 8-10% range that BP is targeting for a wider stable of renewable energy projects that will span wind, PV and bioenergy.