BP Takes $2.1 Billion Write-Off on Renewables Amid Leadership Transition

BP has initiated a major restructuring of its renewable energy portfolio, recording a $2.1 billion write-off against its clean energy assets ahead of the appointment of its new chief executive. The charge, reported in the company’s latest financial statement, reflects a reassessment of the long-term viability and return on investment for several wind and solar projects, particularly in North America and Europe. The decision comes as BP accelerates its broader strategic pivot toward core oil and gas operations, despite earlier commitments to net-zero targets by 2050. The write-off impacts capital investments in offshore wind farms in the U.S. Gulf Coast and onshore solar facilities in Spain and Germany, where project timelines have extended and energy price volatility has reduced projected cash flows. Analysts note that the charge represents approximately 12% of BP’s total renewable energy investment since 2020. The move follows a series of underperformance indicators, including lower-than-expected capacity utilization rates and delayed grid connections, which have strained project economics. The company cited a recalibration of capital allocation priorities to focus on high-return, lower-risk assets. The financial impact has prompted mixed reactions in capital markets. BP’s shares dipped 1.8% in early trading, while energy sector peers like Shell and TotalEnergies saw modest gains, suggesting investors are reassessing the scalability of large-scale renewable projects under current regulatory and economic conditions. The write-off also raises questions about the pace of energy transition investments across the oil major sector.