BP joint venture invests $ 566 million in solar projects based in Spain

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BP plcLightsource BP, the BP-owned solar joint venture, has reached an agreement with Grupo Jorge to acquire three solar power projects in Spain.

The company has not mentioned the amount it will pay for the projects, but expects to invest approximately $ 566 million in the process. In particular, the projects will generate 703 megawatts (“MW”) of electricity, which the company will source from local food and energy company Grupo Jorge.

Lightsource BP, a global leader in the development and management of solar energy projects, is expanding its holdings 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 cheap destination for solar developers because of its sunny conditions and opportunities to enter into renewable energy corporate contracts. The rapid introduction of solar energy in the country is attracting investments by companies in fossil fuels as a result of the advancing global energy transition. Especially peers like TOTAL SE TOT, Repsol REPYY and Galp Energia SGPS SA GLPEY recently acquired assets there.

The most recent acquisition consists of three Aragon-based projects, two of which are in Zaragoza, with 292 MW and 130 MW capacities respectively. The third project is located in the province of Huesca with an output of 281 MW. Lightsource BP expects construction of the projects to begin in 2022. In particular, the joint venture will be looking for customers to negotiate power purchase agreements (PPAs) for clean energy from the projects.

Lightsource BP also expanded its presence in Portugal and Greece as the company continues its rapid global expansion to open up opportunities in new markets. It announced a € 900 million investment plan for Portugal and a big win at the Greek renewable energy auction. Most importantly, BP has pledged to reduce oil production and expand its renewable energy business to cut emissions by 2050.

Company profile & price development

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

The company’s stocks have outperformed the industry over the past three months. The stock is up 12.1% compared to the industry’s 9% growth.

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The company currently has a Zack Rank # 3 (Hold). You can see the full list of current Zacks # 1 Rank (Strong Buy) stocks here.

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