Caisse de dépôt et placement du Québec (CDPQ) and Lightsource BP have announced a debt investment of $194m to finance a portfolio of solar assets owned and managed by Lightsource BP.

14May - CDPQ

Image: CDPQ partners with Lightsource BP to form a new financing facility for solar projects. Photo: Courtesy of Caisse de dépôt et placement du Québec.

CDPQ is an institutional investor that mainly manages funds for public and parapublic pension plans and insurance programs in Quebec, while Lightsource BP is a global leader in the funding, development and long-term operation of solar projects.

CDPQ said that the facility is initially intended to be used for financing a diversified portfolio of solar assets including more than 100 solar projects located across various countries, totaling more than 700MW.

In addition, the facility is capable of expanding over time, with additional investment from CDPQ funding assets developed through the Lightsource BP pipeline.

CDPQ said that its partnership with Lightsource BP aligns perfectly with its investment strategy in addressing climate change through low-carbon investments in solar projects, an asset class that plays a key role across the energy transition landscape.

Lightsource BP chief investment officer Paul McCartie said: “We’re very proud to be partnering with CDPQ. This platform marks the beginning of a very exciting opportunity for both companies as it supports both Lightsource BP’s ambition to become a world leading owner and operator of solar assets and CDPQ’s commitment towards sustainable investing.

“We intend to grow the platform and seek further funding for assets to be developed over the next few years.”

As part of its investment strategy to address climate change and capture opportunities from the transition to a low-carbon economy, CDPQ had raised its 2020 low-carbon asset under management target from $26bn to $32bn at the end of March. CDPQ also targets reduction of its carbon footprint by 25% per dollar invested by 2025.

Founded in 2010, Lightsource BP currently has operations across EMEA, APAC and the Americas, supported by an in-house team of over 350 specialists. With more than 2GW of solar capacity currently under management, the company’s aims is to become the world’s first global solar brand, targeting around 10GW in the next 5 years.