(Alliance News) - Bluefield Solar Income Fund Ltd on Monday unveiled a double acquisition, marking its first investment in energy storage.
Bluefield Solar is a Guernsey-based income fund focused on UK-based renewable energy and storage projects.
The first acquisition is of 109 onshore wind turbines for about GBP63.0 million, which Bluefield said are immediately accretive to earnings.
The second deal is for grid connection and associated land of a fully consented, ready-to-build 45 megawatt peak solar asset and co-located 25 megawatt peak battery project. It was purchased from Equans Ltd for about GBP5.0 million.
The co-located project is based in north-east Lincolnshire and is expected to begin construction in 2022, around the same time as Bluefield Solar's 50 megawatt peak Yelvertoft solar project.
"Both investments mark important steps in fulfilling Bluefield Solar Income Fund's strategic objective of adding complementary renewable assets to its high performing UK solar portfolio," said Chair John Rennocks.
"This is our first investment in energy storage and the board views this as an attractive source of diversification for our income, with significant future valuation uplift potential from adding solar and storage assets in development."
The investment fund in July fundraised GBP103.0 million net of costs, which it used to pay down the bulk of its then-GBP100 million short-term revolving credit facility.
The acquisitions, plus development expenditure, mean the company has redrawn GBP60 million of its revolving credit facility. As a result, its outstanding debt is around GBP340.0 million.
Shares in Bluefield Solar were up 1.0% at 118.20 pence in London on Monday.
By Josie O'Brien; josieobrien@alliancenews.com
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Bluefield Solar (BSIF)