Lightsource BP to invest €900 million in 1.35GW Portuguese solar pipeline

Facebook
Twitter
LinkedIn
Reddit
Email
One of Lightsource BP’s solar projects under construction in Zaragoza, Spain. Image: Lightsource BP.

BP-backed renewables group Lightsource BP is set to invest €900 million (US$1.1 billion) in solar company INSUN to fund the development of five utility-scale solar projects across Portugal.

The investment will add 1.35GW of solar power capacity to Portugal’s electricity grid, the company said, with projects based in Moura, Castelo Branco, Mogadouro, Chamusca and Viseu.

Lightsource BP, which is part-owned by oil and gas major BP through a joint venture, now has a project development pipeline in Portugal and Spain with a total 3.5GW capacity. The projects, which are currently in early development stage, will be in operation for roughly 30 years when they come online, according to the group.

The company has made efforts to significantly increase its presence across southern Europe this year, with a now-1.2GW development pipeline in Italy, and a more than 2GW pipeline in Spain having bought two utility-scale portfolios from local developers at the start of the year.

Miguel Lobo, Lightsource BP’s country head in Portugal, said that Portugal’s “excellent irradiation levels” and its relatively low development costs show that solar can support the country’s growing renewable energy targets. The Portuguese government has set a target of sourcing 80% of its power demands from renewable energy resources by 2030, by which time 9GW of solar is expected to be on the grid. In addition, authorities hope to install 2.5GW of green hydrogen capacity by the end of the decade in order to help lower emissions in heating and infrastructure.

“There really is so much potential for solar within the energy mix,” Lobo said, adding that the company is taking note of future opportunities to invest in “growing technologies” such as green hydrogen and battery energy storage.

“There are lots of additional economic opportunities to explore in addition to the renewable energy generation and local feedback will help shape our projects to local priorities.”

Portugal’s 2019 and 2020 renewables auctions resulted in record-low power prices, with last year’s tender being noted as “quite remarkable” by secretary of state for energy João Galamba. Enerland had paid €11.14/MWh (US$13.12), or US$0.0131/kWh, for a 10MW lot in September’s auction, below the previous industry record tariff of US$0.0135/kWh set by the Al Dhafra project in Abu Dhabi in April 2020.

Portugal is now set to carry out its third solar auction this September, which will include 500MW allocated to floating solar installations to avoid potential future issues around the availability of land in the country.

29 November 2022
PV ModuleTech EMEA in Madrid on 29-30 November 2022 will address the factors underpinning the changing PV module landscape, gathering together all the key stakeholders across the value-chain from module production to field testing. Join us for presentations from the leading players in the sector, clearly identifying the opportunities and challenges set to impact module supply to Europe and the Middle-East over the next few years.

Read Next

October 5, 2022
The Arkansas Public Service Commission has approved Entergy Arkansas’ 250MW Driver Solar Project located near Osceola in Mississippi County.
September 28, 2022
Lightsource bp has closed a BRL800 million (US$147 million) financing for its 210MWp Milagres solar project in the Brazilian state of Ceará.
PV Tech Premium
September 19, 2022
The proliferation of solar requires PV projects to adapt to their grid surroundings, which increasingly entails connecting alongside adjacent technologies, be it energy storage, other renewables or green hydrogen. Amid the growing threat of curtailment, Jules Scully looks at the rise of the ‘solar-plus’ market and the financial models underpinning it.
September 15, 2022
The European Parliament has backed plans to increase the European Union’s (EU) renewable targets as it grapples with the fallout of the war in Ukraine and the rampant energy crisis.
September 14, 2022
Despite “breakthrough” renewables growth across Southeast and Eastern Europe, the Caucasus and Central Asia in recent years, more needs to be done to boost deployment and reduce the region’s reliance on Russian energy imports.
September 7, 2022
German investment firm Aquila Capital has raised €1 billion in financing to support the development and construction of a 2.6GW renewables pipeline in Spain and Portugal over the next three years.

Subscribe to Newsletter

Upcoming Events

On-Demand Webinars, Solar Media Events
October 11, 2022
Virtual event
Upcoming Webinars
October 18, 2022
10am (EDT) / 4pm (CEST)
Solar Media Events
November 29, 2022
Malaga, Spain