The projects are spread across 12 US states, with the largest portfolios in Texas (ERCOT) and the Midwest (PJM). Assets with a combined generating capacity of 2.2GW are expected to reach final investment decision (FID) by 2025, with further projects progressing by 2030. Once developed, these projects will have the capacity to generate enough clean energy to power around 1.7 million US homes. The development is also expected to support thousands of jobs through construction.
Dev Sanyal, bp’s executive vice president of gas and low carbon, said: “Closing this deal represents a significant step towards bp’s target of growing its net developed renewable generating capacity to 20GW by 2025 and aim to increase this to 50GW by 2030. We will now work with Lightsource bp to bring these assets online.”
Dave Lawler, bp America chairman and president, said: “The benefits of these projects are spread wider than just bp – it will create and support US jobs, deliver competitive returns for our shareholders, and provide reliable, affordable and clean energy. It’s one of the many ways we’re in action to help the world reach net zero.”
The assets will be developed through bp’s 50-50 solar joint venture Lightsource bp, a global leader in solar energy, applying Lightsource bp’s capabilities to accelerate bp’s renewables targets.
The projects are expected to meet bp’s disciplined low carbon investment criteria, generating returns of at least 8-10%.