BP nears sale of solar unit Lightsource to Kuwait-backed group in retreat from renewables
The oil major is retreating from clean energy to cut debt and refocus on oil and gas, with a consortium including Kuwait's infrastructure arm closing in on the Lightsource unit.
Background on Lightsource BP
BP first invested in Lightsource in 2017, when the company was the largest solar developer in Europe. By 2023 the British oil major had bought out the remaining 50% stake it did not already own, paying more than $500mn and taking on $2.8bn of debt. The unit now operates 4 gigawatts of solar, wind and battery capacity across 15 countries, roughly enough to power up to 4 million homes.
The sale talks
BP is in advanced discussions with a consortium backed by Kuwait's sovereign wealth fund. The bidding group consists of Qualitas Energy, a private equity firm focused on green energy, and Wren House, the infrastructure arm of the Kuwait Investment Authority. Several people familiar with the matter told the Financial Times that a deal is expected soon, but cautioned that no transaction has been confirmed and it could still fall through.
Debt and strategic retreat
The main attraction of the deal for BP is offloading the unit's billions of dollars in debt, analysts said. The sale price itself is unlikely to be significant for the group. The disposal is part of a broader push by BP to sell assets, reduce debt and refocus on oil and gas after it abandoned a years-long green energy shift last year. In that same announcement, BP said it would write off more than $4bn of value attributed to Lightsource.
- BP first invests in Lightsource, then Europe's largest solar developer.
- BP buys remaining 50% stake for over $500mn, assuming $2.8bn in debt.
- BP writes off more than $4bn and retreats from renewables.
- BP in advanced talks to sell Lightsource to Kuwait-backed consortium.
Leadership and next steps
The sale would be a boost for BP's new chief executive Meg O'Neill, whose tenure has been turbulent. She recently sacked chair Albert Manifold over what the company described as "serious concerns" about his behaviour, sparking a public denial of misconduct from the Irish executive and further upheaval. A successful disposal of Lightsource would help O'Neill stabilise the business after a series of strategy and leadership changes this decade.
