BP is closing in on a deal to sell its solar power arm to an investor consortium backed by Kuwait’s sovereign wealth fund, marking another step away from renewables.
Private equity firm Qualitas Energy and Wren House, the infrastructure arm of Kuwait Investment Authority, have joined forces to place a bid for Lightsource, BP’s solar business.
The Kuwait-backed consortium is reportedly the highest bidder for Lightsource, which BP first invested in back in 2017, with a deal expected imminently according to the Financial Times.
However, the transaction has not yet been finalised, meaning there remains a risk the agreement could still fall through before completion.
The potential sale forms part of a broader asset disposal strategy as BP distances itself from the ambitious green energy transition it championed in 2020 before abandoning last year.
In February 2025, the British oil company told shareholders it would roll back its green targets after setting itself ambitious transition targets five years prior.
BP had originally pledged in 2020 to reduce its oil and gas output by up to 40 per cent as it ramped up renewable goals over the following decade.
The FTSE 100 energy firm has been doubling down on efforts to prioritise oil and gas again in an attempt to slash debt and boost profit after renewable energy plans fell short under its previous chief executive Bernard Looney.
The energy giant warned earlier this year that rowing back on its net zero plans would cost it up to 3.7 million pounds as it sought to rethink its low-carbon strategy entirely.
Lightsource boasts 4 gigawatts of renewable power capacity and operates across 15 countries including the UK, the United States, Australia and New Zealand, representing a significant portfolio.
BP had already been seeking a new partner for Lightsource before ultimately deciding to pursue an outright sale of the business to external buyers.
BP declined to comment on the reported sale process or the terms of any potential transaction with the Kuwait-backed consortium.