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FinanceBP in advanced talks to sell solar arm Lighthouse to Kuwait-backed consortium
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BP is in advanced negotiations to sell its solar power business, Lighthouse (formerly Lightsource), to a consortium backed by Kuwait's sovereign wealth fund. The consortium includes private equity firm Qualitas Energy and Wren House, the infrastructure arm of the Kuwait Investment Authority. They are reportedly the highest bidders, and a deal is expected soon, though it could still fall through. The sale is part of BP's broader strategic retreat from its earlier net zero ambitions. In February 2025, BP announced it would roll back green targets set in 2020, which had aimed to reduce oil and gas output by 40% and achieve net zero by 2050. The company is refocusing on oil and gas to reduce debt and boost profits after its renewable energy plans underperformed. Lighthouse operates 4 GW of renewable capacity across 15 countries including the UK, US, Australia, and New Zealand.
Source report
BP is in advanced talks to sell its solar power business, Lighthouse, to a consortium backed by Kuwait's sovereign wealth fund, as the energy giant continues to retreat from its net-zero ambitions.
Deal Details
Private equity firm Qualitas Energy and Wren House — the infrastructure arm of the Kuwait Investment Authority — have jointly bid for Lighthouse, BP's solar business. According to the Financial Times, the Kuwait-backed consortium is the highest bidder in the sale process.
BP first invested in Lightsource in 2017. While a deal is expected soon, the transaction has not yet been finalised and remains at risk of falling through.
Strategic Shift Away from Green Energy
The sale is part of a broader push by BP to offload assets, following the company's decision to abandon the green energy strategy it had championed in 2020. The company formally stepped back from that shift last year.
In February 2025, BP told shareholders it would roll back its green targets, five years after setting ambitious transition goals. The company had originally pledged in 2020 to reduce its oil and gas output by up to 40% and ramp up renewable investments over the following decade, with a long-term goal of reaching net zero by 2050.
The FTSE-100 energy firm has since refocused on oil and gas in an effort to reduce debt and boost profits, after its renewable energy plans fell short under former chief executive Bernard Looney.
Cost of the Net-Zero Retreat
BP warned at the start of the year that scaling back its net-zero plans would cost it up to £3.7 million, as it rethinks its low-carbon strategy.
About Lightsource
Lighthouse boasts 4 gigawatts of renewable power capacity and operates across 15 countries, including the UK, the US, Australia, and New Zealand. BP had initially sought a new partner for the business before deciding to sell it outright.
BP declined to comment on the sale process.
Source
City AMWestern
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BP in advanced talks to sell solar arm Lighthouse to Kuwait-backed consortium