BP has entered into an agreement to acquire 43% stake in European solar development company Lightsource for $200m.
The investment marks BP’s reentry into the solar power sector after a gap of six years.
BP will pay the acquisition amount over three years and a significant part of the investment will be used to fund Lightsource’s worldwide growth pipeline.
Following the completion of the transaction, the company will be renamed Lightsource BP.
Lightsource group CEO and founder Nick Boyle said: “We founded Lightsource to lead the solar revolution and chose to partner with BP because, like us, their ambition is to build and grow this company for the long-term.
“Not only does this partnership make strategic sense, but our combined forces will be part of accelerating the low-carbon transition.”
According to BP’s Statistical Review of World Energy, global installed solar generating capacity more than tripled in the past four years.
To date, Lightsource has commissioned 1.3GW of solar capacity. It also manages nearly 2GW of capacity under long-term operations and maintenance contracts.
BP’s stake in Lightsource BP is expected to complement its Alternative Energy business, which includes wind energy, biofuels and biopower.
Lightsource BP will continue to develop and deliver Lightsource’s 6GW growth pipeline, which is largely focused in the US, India, Europe and the Middle East.
BP’s Alternative Energy chief executive Dev Sanyal said: “We see significant opportunity to offer affordable, reliable, low-carbon power solutions by integrating solar alongside our existing Alternative Energy and gas business.
“We see Lightsource as a strategic partner with a similar vision and, with the benefits of BP’s global scale and relationships, we together plan to build the global market leader for solar.”
Image: The investment marks BP’s reentry into the solar power sector. Photo courtesy of BP p.l.c.