The acquisition represents a significant step towards bp’s target of growing its net developed renewable generating capacity to 20 GW by 2025 and 50 GW by 2030. The deal will also grow bp’s renewables pipeline from 14 GW to 23 GW. The assets will be developed through Lightsource bp, a European solar developer.
“With this purchase, we are continuing to put our strategy in action as we grow our renewables business in a deliberate and disciplined way,” says Dev Sanyal, executive vice president of gas and low carbon energy at bp. “It brings us 9 GW of high-quality solar projects in markets where we can create integrated renewable energy offers through our trading and customer franchises. We will bring the expertise of Lightsource bp together with the breadth of bp’s integration capabilities to develop this portfolio of projects. This is a significant step as we continue to deliver on our net-zero ambition.”
bp will pay 7X Energy $220 million for the projects and 1 GW of “safe harbor” equipment and expects the acquisition to be completed within 30 days. The projects are expected to meet bp’s low carbon investment criteria, generating returns of at least 8-10%.
The projects are spread across 12 U.S. states, with the largest portfolios in Texas (ERCOT) and the Midwest (PJM). Assets with a combined generating capacity of 2.2 GW are expected to reach final investment decision (FID) by 2025, with the remaining progressing by 2030. The development is expected to support thousands of jobs through construction.
Solar energy is the fastest-growing power source in the U.S. and is expected to quadruple over the next 10 years. It currently accounts for more than 40% of all new electricity generating capacity added in the U.S.