BP is in advanced negotiations to divest its solar power business to a consortium backed by Kuwait's sovereign wealth fund, as the British energy giant steps back from its net zero ambitions.

Private equity firm Qualitas Energy has partnered with Wren House, the infrastructure arm of the Kuwait Investment Authority, to submit a joint bid for Lightsource, BP's solar operation. The Kuwait-backed consortium is reportedly the leading bidder in the sale process, with a deal expected to be reached imminently, according to the Financial Times. However, the transaction remains unfinalised and carries a risk of collapsing.

BP first invested in Lightsource in 2017. The business currently boasts 4 gigawatts of renewable power capacity and operates across 15 countries, including the UK, the US, Australia, and New Zealand. BP had initially been seeking a new partner for the unit before opting for a full sale. Gulf sovereign wealth funds have been steadily acquiring stakes in global renewable energy infrastructure as part of broader economic diversification strategies aimed at reducing reliance on hydrocarbon revenues.

BP Retreats from Green Energy Targets

The prospective divestment forms part of a broader asset-sale push following BP's decision to walk back the green energy transition strategy it unveiled in 2020 and ultimately abandoned last year.

In February 2025, the FTSE-100 company informed shareholders that it would scale back its green targets, having set ambitious transition goals five years earlier. BP's original 2020 pledge included reducing oil and gas output by up to 40 per cent over the following decade while ramping up renewable energy capacity. The company had also committed to reaching full net zero status by 2050.

The energy major has been refocusing on oil and gas to cut debt and improve profitability after its renewable energy plans fell short under former chief executive Bernard Looney, who resigned in 2023. His successor, Murray Auchincloss, has signalled a sharper pivot toward higher-margin fossil fuel projects. The pullback at BP mirrors a wider trend among European oil majors, with Shell also having weakened several of its emissions and energy transition targets in 2024 amid investor pressure for improved shareholder returns.

At the start of the year, BP cautioned that reversing its net zero strategy would cost up to £3.7m as it restructured its low-carbon approach.

BP declined to comment.