The deal to acquire development projects adds 9GW of future solar power capacity, with first projects set to reach investment decisions by 2025.
It is buying solar developer 7X Energy, adding a package of solar projects spanning across 12 states, with the largest project located in Texas.
In all, the solar development projects are expected to represent some 9 gigawatts of power generation, and, BP described it as “significant step” towards its target of establishing 20GW of capacity by 2025, before 50GW by 2030. Along with its existing project’s BP highlighted that its renewables project pipeline now comprises some 23GW of projects.
Nonetheless, of the 7X Energy package, some 2.2GW of projects are presently slated to reach final investment decision (FID) by 2025.
“BP’s new high-quality solar portfolio will provide low carbon energy, create US jobs and deliver the competitive returns our shareholders expect,” said David Lawler, BP America president.
“In line with our strategy, we’ll aim to integrate these projects with our existing onshore and offshore wind, natural gas, and trading and shipping businesses to give customers what they want – reliable, affordable and clean energy.”
BP noted that solar is the fastest-growing power source in the US and presently 40% of all new generation is solar. The group said US solar is expected to quadruple in scale over the next 10 years.
The acquired assets will be operated by the Lightsource BP joint venture company.
Lightsource BP chief executive Nick Boyle said: “This transaction speaks volumes about the success of our JV, and how we leverage each other’s strengths to realize our ambitions for solar and a low-carbon future.
“It also positions Lightsource BP as a growing force in the US solar market, as we expand our portfolio across the United States.”
Read More: BP Plc boosts renewables business with US solar acquisition