Lightsource bp and BlackRock Entered £1 billion Partnership in the UK
London, 25 July 2017 – Lightsource and BlackRock Real Assets have entered in to a strategic partnership which is targeting the acquisition and ownership of UK solar power generation assets with an anticipated aggregate enterprise value of £1 billion, representing a total target installed capacity of circa 1GWp. The newly created partnership, called “Kingfisher”, aims to consolidate the secondary UK solar market.
Lightsource has seeded the partnership with a 25 asset newly-constructed ROC and CFD portfolio with an installed capacity of 156 MWp. Lightsource will add a further c. 50MWp of Northern Ireland ROC assets later this year, once operational.
Going forward, Lightsource and BlackRock Real Assets will target the acquisition of operational utility scale solar assets in the UK over a three-year period. Kingfisher has both a levered and unlevered strategy, with the seed assets funded under the levered structure, with RBS providing project finance with an accordion feature for future acquisitions. Kingfisher will look to target both levered and unlevered asset opportunities.
Lightsource Chief Investment Officer, Paul McCartie, said:
“We’re incredibly excited about this partnership with such an established and prestigious investor as BlackRock in the UK. Kingfisher is confirmation of our proven differentiation as a professional partner to institutional capital globally, and ability to create profitable and sustainable investment opportunities in the solar and energy broader market. By leveraging economies of scale, Lightsource can provide cost efficiencies and better returns as we acquire UK solar plants and operate them as part of our growing global portfolio. This is the clear differentiator between Lightsource and many other solar companies”.
Rory O’Connor, Managing Director and Head of Renewable Power for Europe at BlackRock said:
“We are pleased to partner with Lightsource in the creation of this new UK solar portfolio. Over the last two years, we have invested in more than 20 solar projects in the UK representing nearly 150-megawatt of capacity on behalf of our clients, and we believe this market continues to present attractive opportunities for institutional investors. In working closely together with Lightsource as a leading developer and operator of solar projects we are confident to realize a lot of additional potential in the market.”
BlackRock has a proven track record in the Renewables sector and through its dedicated global Real Assets platform globally manages more than $4.8 billion of equity assets in the renewable power sector.
As part of the agreement, Lightsource will provide long-term operations and asset management services for the platform; building on the company’s experience providing these services for 1.9 GWp of utility scale solar assets in the UK.
Lightsource were advised by Baker and Mc Kenzie (legal) and Deloitte (tax).
Read more about the Lightsource bp and BlackRock partnership.
News
02 May, 2024
Renewable energy demand is set to surge, here’s four reasons why
As global demand is expected to double by 2050, we are shifting towards an increasingly electrified future.
29 Apr, 2024
Financing of €315.34 million for Lightsource bp 560MWp solar project in Greece
This deal marks a key milestone for Lightsource bp’s growth in Europe and in Greece.
29 Apr, 2024
Lightsource bp celebrates World Day for Safety and Health at Work 2024
We’re celebrating World Day for Safety and Health at Work 2024, exploring the impacts of climate change on occupational safety and health.
26 Apr, 2024
Be the change: Lightsource Foundation shortlisted for three awards
The Lightsource Foundation has been shortlisted for three awards at both the Business Charity Awards, and Better Society Awards.
25 Apr, 2024
Experts in the field: Agriculture and solar working together
The mutually beneficial relationship between solar energy and agriculture can take many different forms.
24 Apr, 2024
Behind the scenes at Lightsource bp’s first battery energy storage project
Our Tiln battery project has now been energised. Here’s why this is a key milestone in our mission to build a renewable-powered grid.
19 Apr, 2024
Brazil’s Milagres Solar ranked in the top 10 for energy generation
Among the 13GW of utility-scale solar farms in operation in Brazil, two of Lightsource bp’s Milagres solar farms have ranked in the top 10 for renewable energy generation.
19 Apr, 2024
What is Biodiversity Net Gain, and how will it help nature?
Nature is vanishing at an alarming rate. This is no less than a crisis, with biodiversity loss affecting public health, food security, and efforts to curb climate change.
16 Apr, 2024
Do solar panels work on cloudy days?
Solar panels continue to generate renewable electricity even on gloomy days, but how does this work and what effect does cloud have on generation?
09 Apr, 2024
World Economic Forum brief: Clean energy as a catalyst for a nature-positive energy transition
World Economic Forum brief examining how building renewable energy can help biodiversity and leave ecosystems in better shape than they found them.