Lightsource bp secured 10 power purchase deals totalling 1.3 GW last year

By Nina Chestney

LONDON (Reuters) - Renewable energy developer Lightsource bp, a unit of British oil company BP, secured 10 power purchase agreements (PPAs) last year totalling 1.3 gigawatts (GW) of renewable energy capacity globally, the firm said on Wednesday.

Lightsource bp said the PPAs were contracted across Europe, the Americas and Asia Pacific regions for mainly solar power. Lightsource bp includes companies such as Microsoft, Google, chemicals company LyondellBasell and fashion retailer H&M as customers.

The average duration of agreements is 12 years.

Some of the 10 deals were publicly disclosed last year but not all of them, the firm said. The value of the deals was not disclosed.

PPAs are long-term contracts between an electricity generator and a customer such as a government or company during which time the buyer buys energy at a fixed price.

Renewable power project developers are increasingly tying their electricity output to long-term PPAs to provide revenue security, while corporate buyers are keen to lock in supply and ensure they meet targets for sourcing clean power.

"Buyers are becoming increasingly sophisticated. They are looking for partners who can offer a portfolio of projects across borders. This flexibility allows buyers to diversify their energy sources and mitigate risks, which is something Lightsource bp is well-positioned to provide as we are active across 20 markets globally," Zosia Riesner, global chief commercial officer at Lightsource bp, told Reuters.

A report by Pexapark released in early February said Amazon was the top buyer of PPAs in Europe last year, while it ranked Spain's Iberdrola as the top seller, with around 1.25 GW in deals, 38% more in volume terms than the year before.

Lightsource bp also said it is making a 500-megawatt utility-scale solar and energy storage portfolio available for PPAs this year across Iberia, a region which benefits from high solar radiation and where solar power remains competitively priced.

Other attractive regions for PPAs include Asia Pacific, particularly Australia, while Portugal, Greece and Poland will also be growing markets, the firm said.

Last year, BP completed the acquisition of its remaining 50.03% interest in Lightsource bp.

(Reporting by Nina Chestney; Editing by David Holmes)