July 5, 2019
Lightsource BP, BP’s (BP.L) vehicle for solar energy investments, announced that it has acquired a package of projects in Brazil with about 2 gigawatts of capacity whose value has not been disclosed , the company said on Thursday.
The deal is in addition to other recent bets by major oil multinationals in Brazil’s power sector, in a move that seeks to harness the country’s potential for renewable sources amid betting on a global transition to a low-carbon economy.
According to Lightsource BP, the portfolio acquired from the developer “consists of 1.9 gigawatts of solar projects under development.”
This includes 440 MW of large-scale projects, eligible to participate in government bids for generation projects, and 180 megawatts in smaller, distributed generation projects located in five Brazilian states.
The announcement of the partnership with Enerlife comes shortly after the company and Lightsource BP jointly won a government tender for new power generation projects last Friday.
In the so-called A-4 auction, the companies sold the future production of five solar plants, with a total capacity of about 160 megawatts. The projects must start operating by 2023 and require investment of around 680 million reais.
Lightsource BP said that as part of the announced transaction, some senior members of the Enerlife team will be transferred to the company to work on the further development of the projects.
“Through this acquisition, Lightsource BP will significantly increase its portfolio, strengthen its experience and establish its ambition to become a prominent player in the Brazilian solar market,” the company said in a statement.
One of the executives who will migrate to Lightsource BP is Enerlife’s former CEO, Miguel Lobo, who will be director of Business Development for the company. Before, he had previously been general manager of Martifer Renewables for Latin America.
“I am personally looking forward to growing and further advancing with the strong financial support, extensive experience and extensive purchasing and logistics relationships provided by Lightsource BP,” said the executive, in a statement.
In addition to BP, other oil companies have already announced investments in clean energy in Brazil, such as France’s Total and Norway’s Equinor. Reuters reported in April that more oil companies were looking for renewable assets for acquisition in Brazil, including BP.
Lightsource BP is a global player in the financing, development, acquisition and management of solar photovoltaic projects. BP acquired 43% of the company at the end of 2017, amid a strategic partnership that involved the adoption of the company’s current name. It has invested more than 3 billion dollars in about 2 gigawatts of solar projects around the world.