Lightsource bp, the solar power arm of oil and gas major bp, has sold a 1GW solar portfolio in Australia to Beijing Energy International Australia, the local subsidiary of Chinese clean energy firm Beijing Energy.
The portfolio consists of five projects, three of which are currently in operation: the Wellington and West Wyalong facilities in New South Wales, and the Woolooga project in Queensland, which have a combined solar capacity of 521MW. The other two projects, the Wellington North and Wunghnu facilities, are under construction, and Lightsource bp expects them to begin commercial operation in the second half of 2024.
Try Premium for just $1
- Full premium access for the first month at only $1
- Converts to an annual rate after 30 days unless cancelled
- Cancel anytime during the trial period
Premium Benefits
- Expert industry analysis and interviews
- Digital access to PV Tech Power journal
- Exclusive event discounts
Or get the full Premium subscription right away
Or continue reading this article for free
Lightsource bp reached financial close on the Wellington North and Wunghnu solar projects last December, and the sale of these projects will see Beijing Energy’s renewables footprint in Australia dramatically expanded. Prior to this deal, the company operated just 285MW of capacity in the country.
Lightsource bp was advised on the deal by KWM, Macquarie Capital and EY, and valued the portfolio at A$813 million (US$547.4 million).
“There have been a number of headwinds facing the renewable industry over the past five years, and I am proud that to date we have been able to develop quality projects and deliver value in Australia,” said Lightsource bp APAC managing director Adam Pegg.
“We will use the proceeds from this sale to accelerate the development of our pipeline across the APAC region, advancing exciting projects in New Zealand, Taiwan and South Korea, as well as continuing to be a leader in Australia,” added Pegg.
Also in New South Wales, Lightsource bp was announced this morning as one of the winning proponents of a tender for long-duration energy storage (LDES) held on behalf of the state. Lightsource bp’s Goulburn solar PV project will be co-located with an 8-hour duration 49MW (392MWh) lithium-ion battery energy storage system (BESS). As reported today by our sister site Energy-Storage.news, the project was one of three to get so-called Long Term Energy Service Agreement (LTESA) contracts which underpin revenues.
The news is bp’s latest activity in the Australian renewables sector, following its acquisition of a stake in a massive 26GW solar-plus-wind project in Western Australia last year. This project will be used to generate green hydrogen, and is bp’s latest investment into the hydrogen industry, following its completion of a feasibility study into green hydrogen generation in Australia in May 2020.
The parent company recently announced a move to take full ownership of Lightsource bp, buying out the remaining 50.3% equity still held by the UK PV company’s founders, management and staff. Bp said it would scale up the solar developer’s operations and leverage them to deliver projects across what the company described as “transition growth engines”, such as hydrogen, EV charging, biofuels and power trading.
