BP is in advanced discussions to sell its solar power unit, Lightsource, to a consortium backed by Kuwait’s sovereign wealth fund, marking a significant step in the company’s retreat from renewables. The buyers are expected to be Qualitas Energy, a private equity firm specializing in green energy, and Wren House, the infrastructure arm of the Kuwait Investment Authority.

Lightsource, once Europe’s largest solar developer, operates a portfolio of around 4 gigawatts of solar, wind, and battery capacity across 15 countries, capable of powering approximately four million homes. BP initially invested in Lightsource in 2017 and fully acquired the business in 2024, taking on about $2.8 billion of associated debt in the process.

The sale fits within BP’s broader strategy to divest renewable assets and refocus on core oil and gas operations following a retreat from its previous green energy push. Over the past year, BP has written down more than $6 billion in value across its low-carbon and energy transition portfolio, with $4 billion attributed to Lightsource alone. This shift followed criticism from shareholders over profitability and share price performance, leading to a strategic reset announced in early 2025 under former CEO Murray Auchincloss, who acknowledged that the company had advanced too rapidly in the energy transition.

Meg O’Neill, who became BP’s CEO in April 2026, has emphasized stabilizing the company and reducing debt. The sale of Lightsource aligns with her goals to streamline BP’s portfolio and cut net debt, which stood at approximately $23 billion. The company aims to reduce this figure to no more than $18 billion by the end of 2027. Alongside Lightsource, BP has recently divested a refinery in Germany, petrol forecourts and charging stations in Austria, stakes in offshore Canadian oil projects, as well as several start-ups and pipeline interests in the United States.

While the consortium led by Qualitas and Wren House has emerged as the frontrunner in the bid for Lightsource, sources indicate that the transaction is not yet finalized and remains subject to potential changes. If completed, the acquisition would expand Wren House’s infrastructure portfolio, which includes investments in London City Airport and Associated British Ports. Qualitas currently manages around 11 gigawatts of renewable power assets across several countries, including the US.

BP, Qualitas, and Wren House have declined to comment on the discussions. The sale is anticipated to involve the buyer assuming several billion dollars of Lightsource’s existing debt. Analysts have questioned the unit’s equity value given the sizable impairments BP has recorded on these renewable assets. Nonetheless, the transaction would represent a significant step in BP’s broader refocus on oil and gas as it navigates leadership changes and market pressures.