Wedoany.com Report-Feb 25, BP is set to pivot its strategy by dropping its ambitious renewable energy targets and refocusing on fossil fuels. The company had previously aimed to reach 50GW of renewable generating capacity by 2030, building a diversified portfolio, and setting annual growth targets. However, BP's shares have underperformed its rivals in recent years, prompting investor concerns over its performance.

The company's chief executive, Murray Auchincloss, is expected to outline the new strategy at a capital markets event in London. BP has already reduced its oil and gas output targets, and according to its earnings reports, it operates with low carbon assets. Currently, BP has 8.2GW of renewable generation capacity, with wind power contributing 926MW in 2019.

ECAC, BP's main rival in Europe, has a significant lead in the renewable energy market, capturing 43% of the 220GW European market in 2022. BP's decision to reduce its green energy spending and divest assets aligns with its aim to slash debt and boost returns, as activist investor Elliott Investment Management has a near 5% stake in the company.

The shift reflects BP's response to external pressures and internal restructuring, while also acknowledging the challenges of achieving net-zero targets in a rapidly changing energy landscape.