bp completes Lightsource acquisition, boosts renewables
Photo courtesy of Lightsource bp

bp completes Lightsource acquisition, boosts renewables

bp has finalised a deal to acquire the remaining 50.03% stake in Lightsource bp, transitioning to full ownership of the leading solar and battery storage developer. This strategic move is set to accelerate Lightsource bp's growth and performance.

Renowned for its efficient, capital-light model, Lightsource bp has successfully delivered renewable projects with robust equity returns. Under bp's complete ownership, the company is poised for significant expansion, leveraging bp's strengths in finance and trading to enhance value and maintain double-digit equity returns.

This acquisition also aligns with bp's strategy to meet its low-carbon power needs, supporting its transition growth engines in hydrogen, EV charging, biofuels, and power trading. The terms of the acquisition are structured to reflect market conditions, with a performance-based consideration framework.

Expected to close by mid-2024, pending regulatory approvals, this acquisition fits within bp's financial framework and investment return goals for renewables and power. Anja-Isabel Dotzenrath, bp's executive vice president for gas and low-carbon energy, views this as a natural evolution of their six-year partnership, aiming to elevate Lightsource bp to new heights in the renewable sector.

Lightsource bp, originally known as Lightsource Renewable Energy, is based in the United Kingdom. bp initially purchased a 43% stake in Lightsource in December 2017. The investment by bp was part of its broader strategy to expand into the renewable energy sector, particularly solar energy, as part of its transition to a more diversified energy company. The exact financial terms of this initial investment were not publicly disclosed, but it was a significant move by bp to re-enter the solar energy market.