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BP Joint Venture to Invest $566M in Spain-Based Solar Projects

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BP plc’s BP half-owned solar joint venture, Lightsource BP, entered an agreement with Grupo Jorge to acquire three solar power projects in Spain.

The company did not mention the amount it will pay for the projects but expects to invest about $566 million in the process. Notably, the projects will be able to generate 703 megawatts (“MW”) of power, which the company will purchase from the local food and energy firm, Grupo Jorge.

Lightsource BP, which is a global leader in the development and management of solar energy projects, continues to expand its interests in Europe by acquiring additional pipeline projects in Spain. Importantly, the latest acquisition will increase Lightsource BP’s pipeline in the country to more than 3 gigawatts (“GW”).

Spain has become a favorable destination for solar developers due to its sunny conditions and opportunities to engage in corporate renewable energy deals. The rapid solar energy adoption in the country is attracting investment from fossil fuel companies as a result of the advancing global energy transition. Notably, peers like TOTAL SE TOT, Repsol REPYY and Galp Energia SGPS SA GLPEY recently acquired assets there.

The latest acquisition involves three Aragon-based projects, of which two are located in Zaragoza, with 292 MW and 130 MW of capacities respectively. The third project is located in the Huesca province, with a capacity of 281 MW. Lightsource BP expects the construction of the projects to begin in 2022. Notably, the joint venture will look for customers to negotiate power purchase agreements (PPAs) for clean energy generated by the projects.

Lightsource BP also increased its presence in Portugal and Greece as it continues a rapid global expansion drive to unlock opportunities in new markets. It announced a €900-million investment plan for Portugal and a major win in Greece’s renewable energy auction. Above all, BP pledged to reduce oil production and increase its renewable energy business in an effort to reduce emissions by 2050.

Company Profile & Price Performance

Headquartered in London, UK, BP is a fully integrated energy company, with a strong focus on renewable energy.

Shares of the company have outperformed the industry in the past three months. Its stock has gained 12.1% compared with the industry’s 9% growth.

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Zacks Rank

The company currently carries a Zack Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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