BP completes exit from renewable energy sector

BP is in the process of selling its last fully controlled asset in the renewable energy sector. The company is negotiating the sale of Lightsource BP—a global division specializing in solar energy and storage systems—to a consortium backed by Kuwait. Potential buyers include a partnership between global energy investor Qualitas Energy and Wren House, the infrastructure arm of Kuwait’s sovereign wealth fund.

The sale of Lightsource BP is part of BP’s large-scale withdrawal from the renewables sector, a move that began after a change in leadership. The previous CEO had actively expanded BP’s wind and solar energy business, but under the new management, the company’s strategy has shifted. BP is also facing pressure from some investors who believe the core oil and gas business is more profitable than renewable energy sources.

Previously, BP transferred most of its offshore wind assets—acquired under the former leadership—into a joint venture, Jera Nex BP, with Japan’s Jera energy group. Last year, BP also sold its stakes in American onshore wind farms, leaving Lightsource BP as its last significant renewable generation asset under direct control.

Lightsource BP currently operates and is building 7.5 GW of solar and storage capacity, with a project pipeline totaling 52 GW. The Qualitas-Wren House alliance is considered the leading contender to acquire Lightsource BP, but the deal has not yet been finalized and could still fall through.

The potential buyer will have to assume a significant portion of the company’s debt. BP previously announced it expects an additional $1 billion impairment in its gas and low-carbon energy segment in the second quarter, following a loss of more than $3 billion in the fourth quarter of 2025.