BP Alternative Energy refers to the British energy company BP’s activities in low-carbon and renewable energy sources, including wind, solar, bioenergy, hydrogen, EV charging and other ‘transition’ technologies as part of its broader business. The aim is to help meet rising demand for clean power and support long-term decarbonisation.
Strategic purpose
BP says its purpose is to “reimagine energy for people and our planet”, contribute to reaching net-zero emissions and improve lives by reducing carbon in its operations and expanding low-carbon products and services.
Key activities and projects
Renewable power development
BP has been involved in utility-scale solar and wind projects in markets including the UK and US, often through its partnership with Lightsource bp (solar focussed).
Notable wind assets
Historic projects include wind farms developed under BP Alternative Energy such as the 200 MW Golden Hills Wind Project in Oregon, USA.
Low-carbon technologies
BP pursues investment in technologies such as bioenergy, green hydrogen, carbon capture, storage and EV charging infrastructure, typically as part of its “transition” offering.
Recent strategic shift
Reorientation towards fossil fuels
In 2025 BP announced a major strategic reset that significantly reduced planned renewables investment and refocused capital spending on oil and gas. This has included slashing planned funding for renewables by more than $5 billion per year and scaling back low-carbon projects, shifting investments instead towards higher-return fossil fuel assets.
Impact on renewables goals
BP’s previous strategy to expand renewable generation 20-fold by 2030 and to cut oil and gas output substantially has been pared back or dropped in favour of prioritising core fossil energy production.
Investment and market role
Capital allocation
BP has committed a smaller portion of its overall capital budget to low-carbon energy relative to oil and gas, focusing on partnerships and “capital-light” approaches rather than large standalone renewables build-outs.
Partnership models
Many alternative energy activities are pursued through joint ventures and partnerships (e.g. Lightsource bp for solar), enabling BP to leverage external financing and shared expertise.
Considerations for energy costs
Cost implications
- Renewable projects developed under BP’s alternative energy arm can influence power prices where they operate by adding low-marginal-cost generation capacity.
- Strategic shifts away from renewables may affect future clean-energy supply growth assumptions and associated cost projections.
Market context
BP’s evolving approach reflects broader industry challenges balancing investor returns with long-term decarbonisation goals and the variable economics of renewable technologies.