Lightsource to invest $623m to develop solar projects in UK

The UK-based solar projects developer Lightsource Renewable Energy is planning to invest £400m ($623m) to launch a line of solar projects across the country in 2013.

The company plans to develop nearly 40 projects to add as much as 300MW solar power capacity to its portfolio.

Each of these projects, with a capacity of about 5MW to 15MW, will be built within a period of nine months.

In an interview with Bloomberg, Lightsource chief executive officer Nick Boyle revealed that the company is currently working on about 140MW of projects, which are likely to reach financial conclusion by July 2013.

"We have a very large pipeline of self- developed projects and a large number of other sites that we’re in negotiations to buy off third parties," added Boyle.

Lightsource’s plans come at the time when Britain is planning to increase its solar energy capacity to 22GW by 2020 as part of its target to supply 15% of its energy from renewables by the same year.

To encourage energy diversification, the government is offering revenue streams for project developers such as subsidies, long-term power-purchase agreements and guaranteed prices.

According to the new agency, companies in UK are also expanding in other overseas markets such as Germany, France and the US seeking similar incentives.

In 2012, Lightsource purchased 66 locations in France for $124m.

Meanwhile, the company is working with Octopus Investments to raise funds for its projects.

It is planning to facilitate funds though Enterprise Investment Schemes that offer tax breaks for investors in higher-risk companies.

Currently, Lightsource operates about 300 megawatts of projects.