BP strengthens its position in the Spanish renewables market with 1,060 megawatts of power
The oil company BP, through Lightsource, has closed a deal that shows the British company's interest in renewable energies in Spain. The group has acquired a portfolio of projects totalling 1,060 megawatts (MW), which are distributed in various regions of the country (Madrid, Castilla y León and Andalusia). These are photovoltaic installations that were in the hands of the developer RIC Energy, a Spanish company with a presence in several countries.
The companies involved have not given figures on the amount of the operation, but the investment will be gradual and could reach around 800 million euros, according to experts consulted.
With this operation, which closes five days before 1,000 megawatts for photovoltaic plants are awarded in the auction opened by the government, the British multinational joins other oil companies, including Repsol and France's Total, which see investment in renewable energies as one of the best ways to diversify in the face of a decarbonised economy.
For BP, this is the largest green energy deal in Europe. Spain has given a strong role to photovoltaic (rather than wind) in its plan to renew the electricity generation fleet, which is already planned, through auctions, until 2025.
The purchase operation, led by Lightsource BP and RIC Energy, has other derivatives as they will collaborate in the development of projects that include the 14 solar plants. Construction is expected to be completed by 2021, with electricity generation expected to begin between 2022 and 2025. The BP-linked company is also developing a commercial policy to find large customers to sign PPA contracts with.
Lightsource BP says it is strengthening its commitment to the development of renewable energy projects in Spain and its international expansion. The company established itself in the Spanish market at the end of 2018 and has since worked with local partners to cement its position in the market, focusing on the acquisition and co-development of large-scale, unsubsidised solar plants.
