UK markets open in 57 minutes
  • NIKKEI 225

    -180.63 (-0.65%)

    +395.12 (+2.01%)

    -0.06 (-0.07%)

    -12.00 (-0.66%)
  • DOW

    +535.11 (+1.63%)

    +1,266.68 (+6.71%)
  • CMC Crypto 200

    +47.27 (+8.90%)
  • ^IXIC

    +360.88 (+2.89%)
  • ^FTAS

    +21.29 (+0.52%)

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

  • Oops!
    Something went wrong.
    Please try again later.
·3-min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

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.

Zacks Investment Research
Zacks Investment Research

Image Source: Zacks Investment Research

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.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

BP p.l.c. (BP) : Free Stock Analysis Report

Repsol SA (REPYY) : Free Stock Analysis Report

Galp Energia SGPS SA (GLPEY) : Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting