Lightsource BP invests 1.3 billion in solar in Portugal

The British from Lightsource BP – a company owned by the oil company BP – are developing six photovoltaic solar energy projects in Portugal with a total of more than 1.5 gigawatts of power. The total value of the investment exceeds 1.35 billion euros, Jornal Económico found.

The most recent project to be submitted to Environmental Impact Assessment (AIA) is the Alqueva Solar Photovoltaic Plant, an investment of 365.5 million euros to build a plant with 431.5 MWp to be installed in the municipality of Moura, district of Beja. Per year it will produce an average of 680 GWh.

This plant arises from a direct agreement between the promoter and REN, with the promoter having to bear all costs arising from the necessary network reinforcement. The project also aims to install an electrical energy storage system using batteries, which will have an availability of 86 MVA, with a total storage capacity of two hours (172 MWh). The public consultation ends on June 7th.

But there are more projects underway. In January this year, the company submitted to the Portuguese Environment Agency (APA) the Environmental Impact Study (EIA) to build the Beira photovoltaic plant, located in the municipalities of Castelo Branco and Idanha-a-Nova, which has a total power of 269 megawatt peak (MWp), but the process is still in the study phase.

And there are more projects ahead that have already obtained a positive Environmental Impact Declaration (DIA) from the Portuguese Environment Agency (APA), but subject to compliance with conditions: the Chamusca plant (281 MW) and the Cibele plant (100 MW), both in the district of Santarém; the Planalto plant in Mogadouro, district of Bragança, with 130 MWp; the Paiva plant, district of Viseu, with 290 MWp.

“Portugal has the opportunity to take advantage of a strategic resource, generating wealth and jobs. A photovoltaic panel in Portugal produces 50% more electricity than the same panel in Germany or the United Kingdom. And this greater solar resource, if used, results in lower electricity bills for companies and people. For electro-intensive consumers, this cost difference has a very significant impact. And lower costs increase competitiveness”, the national energy manager, Miguel Lobo, told Jornal Económico (JE).

“Investment in large-scale projects, which result in lower costs per megawatt, is crucial not only to reduce consumer prices, but also to improve Portugal’s competitiveness relative to other countries, which we so desperately need. We need to accelerate the implementation of projects that are sustainable and that bring direct benefits in environmental and economic terms”, defended Miguel Lobo.

Despite the large scale of the projects in Portugal, the company’s largest plant in Europe is being built in Greece: the Enipeas Solar project has 560 MW.

In Australia, the company has its largest project in the world: Sandy Creek Solar with 840 MW. Another major project in the country is the 550 MW Goulburn River Solar. Both are in the development phase.

The company has more than 300 large projects developed, with an installed capacity of 8.4 gigawatts and a pipeline of 65 gigawatts. In the first quarter of this year, it had 2.7 gigawatts under development in several markets: the United Kingdom, Greece, Poland, Brazil, the United States and Australia.

In the case of the Alqueva plant, the Environmental Impact Study (EIA) points out that the negative impacts of the project will be felt mainly during the construction phase, arguing that they will be, for the most part, “not very significant, (some even insignificant) temporary and, for the most part, possible to be minimized with the application of a set of actions/measures proposed in the EIA, to be adopted during the construction phase”.

“As a result of the environmental and landscape recovery of the intervened areas, part of the negative impacts expected to occur during the construction phase will no longer be felt during the Project’s operation. Those that remain will generally be of little significance (reduced areas to be waterproofed). Those considered significant (visual perception that some potential close observers may have of the presence and functioning of the Center) can be minimized, through the application of barriers using natural engineering techniques and the implementation of actions that generate added value. Including the potential for minimization, foreseen in the measures, the residual negative impacts on most environmental factors will be insignificant overall, offset by the positive benefits that are expected to occur”, according to the study.

The company argues that “Despite the negative impacts mentioned, the important role that the project plays in reducing GHG emissions (by avoiding the annual emission of 110 thousand tons of CO2, translating into 3.8 million tons of CO2, after 35 years). This role tends to assume greater importance in alleviating the country’s external energy dependence, in a global context currently marked by a serious energy crisis. In addition to meeting the strategy defined by the Portuguese Government in these matters, making its contribution to achieving the established goals, the project is aligned with the territorial development model established in the territorial management instruments in force”.

At the end of 2023, BP purchased the 50% of the company held by Nick Boyle (CEO) for more than 300 million dollars. Lightsource BP was founded in 2010 by Nick Boyle. From three markets, the company expanded to 19 countries, with more than 1,200 workers. In 2022 it recorded an EBITDA of £287 million, with debt adjusted at £1.5 billion.

In February this year, BP’s CEO revealed that the oil company was considering opening the doors of Lightsource BP to partners, having revealed that he had already held talks with other companies, but that no decision had yet been made.

By 2030, the oil company wants to cut its oil production by 25% compared to 2019 to two million barrels per day. BP is one of the largest oil companies in the world: in 2023 it generated 14 billion dollars in profits, being among the oil majorsthe global giants in the sector.