British Petroleum (BP) is reportedly in advanced discussions to sell its solar energy business, Lightsource, to a consortium backed by Kuwait’s sovereign wealth fund. The proposed buyer group includes Qualitas Energy, a renewable energy-focused private equity firm, and Wren House, the infrastructure investment division of the Kuwait Investment Authority.
The potential transaction is part of BP’s broader strategy to reshape its business portfolio and focus more strongly on its traditional oil and gas operations. Under the leadership of Chief Executive Meg O’Neill, BP is working to improve profitability, reduce debt levels, and increase returns for shareholders. The company has been reviewing its renewable energy investments after several projects failed to generate the expected financial performance.
Lightsource, one of the world’s leading solar development companies, became a major part of BP’s renewable energy expansion strategy. However, changing market conditions, rising project costs, and lower-than-expected returns have encouraged BP to reconsider its position in the clean energy sector.
The possible sale follows BP’s announcement of a major $20 billion asset divestment program aimed at strengthening its financial position. As part of this strategy, the company has already moved to sell minority stakes in more than ten venture investments. BP has also reduced its involvement in several renewable energy projects, including offshore wind developments, a biofuel facility in Amsterdam, and green hydrogen initiatives in Australia and the United Kingdom.
The company has faced financial pressure from its lower-carbon businesses, with BP warning of approximately $1 billion in impairment charges linked to these operations, including Lightsource. At the same time, stronger crude oil prices and improved refining margins are expected to support its conventional energy business.
If completed, the deal would provide BP with additional financial flexibility and allow the company to concentrate on its core oil and gas activities. For the Kuwait-backed consortium, acquiring Lightsource would offer access to a global solar energy platform with established project development capabilities.
The negotiations are ongoing, and final terms of the agreement have not yet been disclosed. Both sides are continuing discussions to complete the transaction.
Subscribe to get the latest posts sent to your email.
