How large-scale solar can benefit the energy transition

The energy transition is a complex challenge requiring a diverse mix of energy sources. Among these, large-scale solar projects are emerging as a crucial component. As part of a modern power sector, a large contribution of electricity from utility-scale solar can offer a competitive advantage in markets around the world. With the addition of large-scale battery storage, solar is competitive and flexible.

Large-scale solar is also versatile in the types of geography it can be deployed in. It can be installed in regions ranging from the heat of Arizona and Texas in the US to Taiwanese fishing ponds and the rolling hills and cooler climate of the UK. The burgeoning work on agrivoltaics also means agriculture and solar energy can work in tandem and at scale.

Where suitable, large solar farms can efficiently deliver the cheapest, secure electricity that our societies have ever had access to. These projects provide economies of scale at every stage from planning to procurement, financing, construction and operation. This scale can help drive down power costs making electrifying economies more competitive and creating new market opportunities.

Delivering on Australia’s super-sized renewable resources

Australia is blessed with natural resources, including wind and solar. Renewable energy presents a huge opportunity for the country to reap the benefits of these domestically and potentially through exports as well.

Our hub of projects near Wellington in the Orana region of New South Wales, Australia, demonstrate how Lightsource bp’s approach to solar can be scaled up to deliver home-grown energy resources.

The cluster is comprised of two Lightsource bp developed solar projects; Wellington (200MWdc) which has been operational since 2022, and Wellington North (425MWdc), a project that is in the final stages of construction and will be operational in late 2024. Together, the projects will provide enough electricity to supply the equivalent of around 225,000 Australian homes. During peak construction, the two sites had a combined workforce of 1,200 people.

The Wellington Hub is not a one-off. There are other major project opportunities in our pipeline. Our 840MW Sandy Creek project, currently in development in New South Wales, further demonstrates the scope for appropriate and responsible projects to continue growing.

As renewables continue to scale, they also present opportunities for export. Singapore has a thriving economy and substantial energy demands; however, as an island city-state, harnessing its own renewable resources is a challenge. To address this Singapore is actively exploring how it could generate electricity using imported ammonia creating new energy export opportunities. Many of the world’s major economies are also currently net energy importers including China, India, Japan and South Korea – the four greatest net energy importers respectively in 2022.

Here is an important economic avenue for Australia to harness its natural resources.

Financing our largest project to date

Lightsource bp recently secured finance for our biggest project to date, the 560MW Enipeas project in Thessaly, Greece. Lightsource bp projects are developed with tailored plans to measure and enhance biodiversity. For Enipeas, vegetation screening and biodiversity enhancement through native planting programmes will be carried out to ensure a positive contribution to the landscape and a boost to the habitats for local flora and fauna.

The project reached financial close in April 2024. Once operational, the solar project will contribute to avoiding carbon emissions equivalent to 379,000 tonnes and will generate enough renewable electricity to power around 225,000 Greek homes.

Additionally, it will help support Greece’s energy security and economy by providing direct employment during construction and enhancing the nation’s attractiveness as an investment destination for industrial sectors seeking large-scale sources of clean power. As more economies around the world also look to decarbonise, competitiveness is likely to become more strongly tied with the price and availability of low carbon power.

Lightsource bp was recognised with the Investment Award at the inaugural UK-Greek Business Awards in February 2024. Since entering the Greek market in 2020, the company has progressed a portfolio exceeding 1GW of solar and storage projects. Access to predictable, low carbon power can strengthen Greece’s efforts to attract further investment in the renewable energy sector.

Meeting global solar demand through scale and innovation

Large-scale solar projects are proving to be a vital part of the energy transition. By leveraging economies of scale and integrating innovative solutions, these projects can provide affordable, reliable, and sustainable energy. As global demand for renewable energy grows, large-scale solar is set to play an increasingly important role in powering our future.

With an established in-house innovation and engineering functions, Lightsource bp is well-placed to drive and adapt for solar’s potential future as a major economic driver.

Find out how solar can deliver for nature, communities and rural economies.