Key facts
- BP is in advanced talks to sell its solar business, Lightsource.
- The potential buyers are private equity firm Qualitas Energy and Wren House, the infrastructure arm of Kuwait Investment Authority.
- BP is reportedly backing away from its net zero and renewable energy commitments.
- The sale is part of a broader strategy to divest assets and prioritize oil and gas.
British oil giant BP is reportedly in advanced negotiations to sell its solar power business, known as Lightsource, to a consortium led by Qualitas Energy and Wren House, the infrastructure arm of Kuwait Investment Authority. This potential transaction signifies a strategic shift for BP, moving away from its previously ambitious net-zero and renewable energy targets set in 2020.
The sale is part of BP's broader effort to divest assets and re-prioritize its focus on oil and gas production, aiming to reduce debt and boost profits. Lightsource, which BP first invested in during 2017, boasts approximately 4 gigawatts of renewable power capacity and operates across 15 countries, including the UK, the US, Australia, and New Zealand.
Sources indicate that the Kuwait-backed consortium is the highest bidder, and a deal is anticipated soon, according to the Financial Times. However, the transaction has not yet been finalized, carrying a risk of falling through. This move follows BP's announcement in February 2025 to roll back its green targets, a decision that came after its previous pledge to reduce oil and gas output by up to 40% over a decade and achieve net-zero emissions by 2050.
The company warned earlier this year that this strategic pivot would cost up to £3.7 million as it rethinks its low-carbon strategy. BP had been seeking a new partner for Lightsource prior to deciding on a full sale.