BP has set its sights on further growth in solar PV by increasing its stake in developer Lightsource BP.
The O&G major is to purchase additional equity in the European solar developer, enhancing its stake from 43% to 50%.
The proceeds from that sale of new shares are to be re-invested in Lightsource BP, allowing it to pursue a solar development pipeline that currently stands in excess of 12GW.
The deal comes around two years after BP first announced its return to the solar sector, purchasing a 43% stake in Lightsource for a sum of US$200 million (£148 million). Since receiving that investment, Lightsource BP has bolstered the number of markets it’s active in from five to 13, taking aim at some of the world’s hottest solar markets.
Nick Boyle, chief executive at Lightsource, said that while the company has already made “huge strides forward” with BP’s presence, there remains “so much more we can do together”.
Financial details of the transaction have not been disclosed, however BP will gain additional nominees on Lightsource BP’s board to reflect the equalised share. Strategic decisions will continue to be jointly taken by the two shareholder groups, the companies said.
Dev Sanyal, chief executive at BP’s Alternative Energy division, said that solar was set to play a key role in the ongoing energy transition, reinforcing the company’s motive to invest more in Lightsource BP and “deepen” its partnership.
“We want to advance the solar energy business worldwide and we can bring scale, capability and resources to make that happen. We are proud to be advancing solar alongside such a dynamic partner.”
Last year Current± sat down with Lightsource’s Nick Boyle and Kareen Boutonnat one year on from the transaction to discuss how the deal had been transformative for both companies.