BP's $2 Billion Onshore Wind Business Sale Highlights Renewable Energy Shift
BP Puts $2 Billion Onshore Wind Business Up for Sale
BP has put its onshore wind business in the US, estimated at $2 billion, up for sale while scaling back its renewables focus. The UK-listed oil major announced plans to sell nine operational wind farms across seven states, in addition to its share in a tenth wind farm situated in Hawaii. This decision marks a decisive move to concentrate more on its solar energy investments, specifically Lightsource bp.
Strategic Exit from Underperforming Assets
- BP also faced difficulties with its offshore wind projects, leading to a $1.1 billion write-down last year.
- Company officials have indicated that onshore wind is no longer aligned with BP’s growth strategy focused on solar.
- Analysts suggest the sale could attract buyers, given the estimated value exceeding shares’ current valuation.
Broader Energy Landscape Implications
The announcement raises questions about BP's long-term strategy as solar energy increasingly becomes the dominant source of renewable energy in the US. BloombergNEF projects nearly three times more new solar capacity than wind to be installed between 2024 and 2035, with BP acknowledging challenges in its winds segment amidst falling installations and rising competition. As the company shifts focus, it remains to be seen how this impacts its broader renewables portfolio moving forward.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.