bp to Acquire Full Ownership of Lightsource bp

bp intends to utilize Lightsource bp's expertise as a developer of cost-competitive utility-scale onshore renewable power to meet its demand for low-carbon power.

December 02, 2023. By Abha Rustagi

In a strategic move to bolster its renewable energy portfolio, bp has announced its agreement to acquire the remaining 50.03 percent interest in Lightsource bp, a leading developer and operator of utility-scale solar and battery storage assets.

The acquisition, set to close in mid-2024 pending regulatory approvals, marks bp's commitment to taking full ownership at an opportune time, facilitating the continued growth and high performance of Lightsource bp.

Operating with a proven capital-light model, Lightsource bp has excelled in developing, engineering, constructing, and farming down assets to strategic partners, delivering equity returns in the mid-teens.

bp's full ownership will allow for further scaling up of Lightsource bp, leveraging bp's complementary capabilities, particularly in finance and trading, to create additional value. The aim is to sustain double-digit equity returns from this business.

Anja-Isabel Dotzenrath, bp Executive Vice President for Gas and Low-Carbon Energy, expressed confidence in scaling up the successful business and utilizing its capabilities to meet bp's growing demand for low-carbon power. “We will continue to scale this successful business, and also apply its capabilities and expertise to help meet bp’s growing demand for low carbon power from our transition growth engines,” she said.

bp intends to utilize Lightsource bp's expertise as a developer of cost-competitive utility-scale onshore renewable power to meet its demand for low-carbon power. This integration is expected to de-risk and support the delivery of bp's targets in transition growth engines, including hydrogen, EV charging, biofuels, and power trading.

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Lightsource bp

Onshore renewable power