BP to acquire US$200 million stake in Europe’s largest solar development company

Lightsource and BP have announced that they have agreed to form a strategic partnership.  Lightsource, Europe’s largest solar development company, will be rebranded as Lightsource BP.

On completion of the transaction, BP will acquire a 43% equity share in Lightsource for a total consideration of US$200 million. The majority of this investment will fund Lightsource’s worldwide growth pipeline. BP will have two seats on the board of directors.

Under the terms of the agreement, BP will pay Lightsource US$50 million on completion of the agreement, with the total balance paid in installments over three years. Completion is anticipated in early 2018.

Recent research by BP suggests motivation for this acquisition. BP’s Statistical Review of World Energy found that global installed solar generating capacity has more than tripled in the past four years and grew by over 30% in 2016 alone. BP’s Energy Outlook analysis sees solar as likely to generate around a third of the world’s total renewable power and up to 10% of total global power by 2035.

Lightsource has commissioned 1.3 GW of solar capacity to date and manages approximately 2GW of capacity under long-term operations and maintenance contracts - the equivalent of powering over half a million homes through clean energy.

Nick Boyle, Group CEO and founder of Lightsource, 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. Solar power is the fastest growing source of new energy and we are excited to be at the forefront of this development.”

Bob Dudley, BP group chief executive commented:

“BP has been committed to advancing lower-carbon energy for over 20 years and we’re excited to be coming back to solar, but in a new and very different way. While our history in the solar industry was centred on manufacturing panels, Lightsource BP will instead grow value through developing and managing major solar projects around the world. I am confident that the combination of Lightsource’s expertise and experience with BP’s relationships and resources will propel this innovative business to even more rapid growth.”

Lightsource were advised by Rothschild, White and Case, Deloitte and Baker & McKenzie.