BP PLC has entered into an agreement to purchase the remaining 50.03 percent ownership share in Lightsource BP Renewable Energy Investments Ltd., making it the sole owner of the solar power developer. The transaction, valued at £254 million ($320.65 million), supports BP's objective to meet its demand for low-emissions electricity and contributes to its renewable energy capacity goals.

This move aligns with BP's strategy to achieve 20 gigawatts (GW) of installed renewable energy capacity by 2025 and 50 GW by 2030. As of the third quarter of 2023, BP had 43.9 GW in net capacity in the pipeline. The transaction involves the divestment of the remaining stake from founders, management, and staff, and regulatory approvals are expected for the closure in mid-2024.

Lightsource BP, operating in 19 countries with 61 GW of projects under development, reported £287 million ($362.31 million) in earnings before income tax, depreciation, and amortization in the previous year. The acquisition allows BP to scale up Lightsource BP, applying its complementary capabilities, including finance and trading, to target double-digit equity returns.

Anja-Isabel Dotzenrath, BP's executive vice-president for gas and low-carbon energy, sees the acquisition as a natural evolution of the six-year partnership, expressing the intention to take Lightsource BP to the next level of profitable growth and performance.

Joaquin Oliveira, currently BP's senior vice-president for gas and low-carbon energy finance and a non-executive director at Lightsource BP, is slated to become co-chief executive of Lightsource BP post-acquisition. Despite the full ownership, BP plans to maintain Lightsource BP's independent brand and organization.

The agreement includes a base equity payment of £254 million, with additional payments contingent on Lightsource BP's performance and the market value of the divested portfolio over time. Upon completion, BP will consolidate Lightsource BP's net debt, and the existing $900 million guarantee issued by BP for Lightsource BP loans will be removed from BP's reported adjusted debt.