- Lightsource bp has announced raising $1.8 billion as revolving credit facility and trade finance facility
- It will use the proceeds to grow its developed solar portfolio to 25 GW by 2025
- Developed projects are defined by the company as having either achieved financial closure or reached final notice to proceed status, with all necessary permitting in place
The solar joint venture of British fossil fuel behemoth bp p.l.c., Lightsource bp has adjusted its vision for the future to grow to a massive 25 GW portfolio by 2025. For comparison, since 2010 it has developed 3.8 GW solar power projects globally.
The reason for this ambitious yet confident target is the $1.8 billion revolving credit facility and trade finance facility it has secured from 10 global financial institutions. These are identified as BNP, SocGen, Santander, Natwest, Lloyds, Mitsubishi UFJ Financial Group, Sumitomo Mitsui Banking Corporation, Canadian Imperial Bank of Commerce, Toronto Dominion and Wells Fargo.
To be specific, the Lightsource bp management explained that this 25 GW will be ‘developed’ capacity, meaning projects that have either achieved financial closure or reached final notice to proceed status, with all necessary permitting secured, leaving construction ready to begin.
While the financial security gives the company certainty in meeting its targets, Lightsource bp has been growing its global portfolio in Europe including in Spain, Portugal, Italy and Greece among others. The target includes 9 GW portfolio it is developing exclusively for bp (see Lightsource BP To Develop 9 GW Solar Acquired By BP).
Lightsource bp’s Group CEO Nick Boyle admitted the company’s 25 GW by 2025 plans are sure very ambitious, but referred to growing demand for solar by corporations and solar’s much-required role in clean energy transition for the world as the reasons for the expected uptake of solar in the near future.
“Lightsource bp has developed more than 30 projects, which today have consistently delivered 8 to 10% returns. So when people ask if we really have the capability to deliver the returns we talk about, the answer couldn’t be clearer – yes, we can because we are,” said bp’s Executive Vice President of Gas and Low Carbon Dev Sanyal who is set to leave bp to join an oil refiner Varo Energy as its CEO (see New Chief For BP’s Gas & Low Carbon Energy Business).
The British solar developer counts more than 500 new jobs to be created within the company over the next 4 years, thanks to its growing pipeline through greenfield, co-development and acquisition opportunities.