Japan's JERA Nex swoops for Lightsource BP US assets
Deals for almost 400MW of solar are first since developer was launched
JERA Nex has acquired the largest solar project in Louisiana and another in neighbouring Arkansas from Lightsource BP, as the Japanese renewables player looks to the fast-growing US market to help scale its global asset portfolio.
They include the Oxbow and Happy solar arrays with nameplate ratings of 300MW and 95MW, respectively, on an alternating current basis. Financial terms were not made public. Lightsource BP is oil giant BP's solar arm, which it struck a deal last year to take 100% control of.
JERA Nex said the acquisitions were made in partnership with JERA Americas, another unit of JERA, the largest power generation company in Japan. Houston-based JERA Americas is involved with low-carbon ammonia and hydrogen development.
The Oxbow and Happy projects are the first US solar assets in JERA Nex’s portfolio. JERA Americas in 2021 acquired the 300MW El Sauz wind project in Texas. JERA Nex said the deals have all regulatory approvals.
Oxbow has long-term PPA agreements with corporate customers including eBay and Happy has a long-term off-take arrangement with Conway Corp, the city-owned utility system in Conway, Ark.
“We are delighted to take our first step into the US solar market with the acquisition of these projects. This first transaction since our recent launch is an indication of our ambitious plans to scale onshore and offshore renewables for a sustainable future,” said Richard Scott, vice president, development and construction onshore, at JERA Nex.
“We hope to build a broader onshore renewables portfolio in the US and globally,” he added.
As part of the agreement, Lightsource BP said it will continue to provide asset management and O&M services to JERA Nex, ensuring continuity and a smooth transition for the local community and customers.
Solar provides less than one percent of Louisiana's electricity. Natural gas comprises 68%, nuclear 15%, coal 8%, and 9% a mix of carbon and clean technologies.
Louisiana ranks third among the states with the highest total electricity consumption on a per capita basis with industry consuming 42% of the total each year, then residential (33%), and commercial (25%).
Renewables comprise about 9% of electricity in Arkansas with solar one-fifth of that amount.
US solar is drawing more global investment than all competing clean power technologies combined. These include battery storage, geothermal, hydro, and wind, both offshore and onshore.
Except for battery storage, solar is generally easier to permit and connect to the electric grid and locate closer to industrial and metropolitan load centres than clean alternatives.
Lucrative long-term federal tax credits have led numerous Asian, Canadian, and European companies to unveil ambitious investments for grid-scale arrays and solar supply chain manufacturing.
President Joe Biden’s administration forecasts that solar will become the dominant US clean energy technology by 2035, its target year for achieving a carbon-free electric grid.
BP this decade has adopted a more cautious view of renewables, while its US market presence has declined. On 1 January, it had 2.47GW of battery storage, solar, and wind, ranking 22nd among asset owners here, according to the American Clean Power Association, a national trade group.
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