Lightsource BP has signed a senior debt facility with NatWest Markets to fund a 250MW cluster of solar farms in Spain and secured a seven-year power purchase agreement (PPA) for the all the electricity generated.
NatWest Markets are underwriting the entire financing of the project, with BP’s European gas and power business, which is part of the group’s supply and trading business, agreeing the PPA.
Lightsource BP said construction is about to start, with Andalusia-based EPC contractor Prodiel carrying out the work.
The cluster is scheduled to be operational by January 2021 and will deliver about 500 gigawatt-hours of electricity a year.
Bifacial solar panels are being supplied by Trina Pro, with trackers with inverters coming from Power Electronics.
Lightsource BP acquired the portfolio last autumn.
Lightsource BP chief investment officer Paul McCartie said: “The speed at which we have brought this deal together is a huge testament to what Lightsource BP can bring to the Spanish energy market.
“Working out of Madrid, we have a very capable team that can manage the entire lifecycle of projects from development and financing through to asset management and operations.
“We are pleased to be in partnership with BP and NatWest Markets on our first deal in Spain.
“We have now made our mark on the local market which is another step towards the company’s wider goal of achieving 10GW in the next five years”
NatWest managing director Craig Love said: “As we strive to grow our renewables business in Western Europe, we are thrilled to partner with Lightsource BP in Spain as part of its global development.
“This aligns perfectly with our commitment to increasingly focus our efforts on the sustainable energy sector as we build a purpose-led bank, facing up to the climate challenge with the communities we serve.”
Legal advisors were Watson Farley & Williams, Ashurst and Uria Menendez. Technical advisors were RINA and Advisian, and Alvarez & Marsal.