Global oil giant starts work on huge Australian solar and battery projects, takes swipe at nuclear

Lightsource bp, the now fully owned renewable energy arm of oil major bp, has weighed in on Australia’s nuclear debate, after kicking off construction on its two latest “firmed renewables” projects in the country.

Lightsource bp said on Monday that it commencing construction on its huge, 585 megawatt (MW) Goulburn River solar farm, located near Merriwa in New South Wales, and the 222 MW, up to 640 megawatt-hour (MWh) Woolooga battery energy storage system (BESS) near Gympie in Queensland.

Both projects are being developed as hybrid generation and storage projects: The Woolooga BESS is being built alongside the existing 200 MW Woolooga solar farm and the Goulburn River solar farm will have an eight-hour battery added sometime before 2026.

In a statement, Lightsource bp’s chief operating officer for APAC, Adam Pegg, said the two hybrid projects exemplified “exceptionally well-designed” power solutions that combine solar with storage to deliver reliable and efficient projects.

“While there’s ongoing debate about the role of nuclear, the reality is that we have solutions today for firmed renewables – wind and solar backed by batteries – which are already proving to be the most cost-effective and reliable energy solution,” Pegg said.

“These projects set a new benchmark for how we approach all future developments, demonstrating how market-driven innovation can deliver cost-effective solutions that meet growing energy demands.

“By embracing firmed renewables, we can build a modern energy grid that is cleaner, more resilient, and capable of powering the nation’s growth, driving both economic progress and sustainable development in a rapidly changing world.”

The Goulburn River solar farm is a particularly important project for the company, being one of the largest approved single solar farms in the state to reach shovel-ready status to date. It is also one the winners of federal Labor’s Capacity Investment Scheme (CIS), announced last week.

Lightsource bp had already secured a Long-Term Energy Service Agreement (LTESA) in late 2023 from the NSW government to provide one of only three eight hour battery projects in the country.

Since its entry into the Australian market in 2018, Lightsource bp has developed and financed more than 1.2GW and is working up a solar and battery portfolio of more than 7.5 gigawatts (GW) across Australia and New Zealand.

Parent company bp, meanwhile, has been paring back its investments in renewables, including through the recent decision to merge its offshore wind business into a new 50:50 joint venture with the renewables arm of Japan’s largest power generation company, Jera Nex.