Foresight Solar Fund Limited Acquisition of First Battery Storage Asset (3309X)
May 04 2021 - 2:00AM
UK Regulatory
TIDMFSFL TIDMJLEN
RNS Number : 3309X
Foresight Solar Fund Limited
04 May 2021
4 May 2021
Foresight Solar Fund Limited (the "Company")
Acquisition of First Battery Storage Asset
Foresight Solar Fund Limited is pleased to announce the
acquisition of a 50% equity stake in Sandridge Battery Storage
Limited ("SBSL"). SBSL holds the development rights to construct
the Sandridge Battery Storage project, a 50MW lithium-ion battery
energy storage system based in Melksham, UK, adjacent to the
Sandridge solar park which is already owned by the Company.
The acquisition marks the Company's first investment into
Battery Storage Systems following the change of Investment Policy
which was approved by shareholders in February 2021. It will
represent a total investment of up to GBP12.7 million (including
construction costs) and will be funded using the Company's existing
revolving credit facilities. The investment has been made alongside
JLEN Environmental Assets Group Limited ("JLEN") which will also
acquire a 50% equity stake.
The Sandridge battery storage project is fully consented and
construction ready. The project will be connected to Southern
Electric Power Distribution plc's distribution network and has a
49.9MW import and export connection. The distribution network point
of connection will be shared with the Sandridge solar park already
in operation. The sharing of grid connection infrastructure will
not have an adverse impact on the Sandridge solar park or its
operations. Energisation and commercial operations are scheduled to
commence in October 2022. The project will add stability and
strength to the grid in multiple ways, which include frequency
management (Dynamic Containment and other frequency services in the
future), supply/demand management via Balancing Mechanism,
volatility reduction and load-shifting through wholesale trading,
and provision of capacity for peak demand via Capacity Market.
The Company also announces a GBP25 million extension of the
revolving credit facility provided by NatWest, on identical margins
as the original facility. The revolving credit facility extension
will mature on 31 March 2022. Following this extension, the
Company's total revolving credit facilities will represent GBP130
million, of which GBP47 million remains undrawn. Future
utilisations of the Company's revolving credit facilities will
remain subject to the gearing restrictions included in the
Company's investment policy.
The extension of the revolving credit facility will provide the
Company with additional flexibility to pursue further investments
into solar and battery storage systems in the UK and
internationally.
Alex Ohlsson, Chairman of Foresight Solar Fund Limited,
said:
"Battery Storage Systems are a complementary and exciting new
growth area for Foresight Solar and we are delighted to have
acquired a significant stake in the 50MW Sandridge Battery Storage
project, the first of our investments in this asset class.
Diversification into BSS will provide increased scale,
diversification and operating efficiencies alongside the Company's
existing portfolio and should offer an additional source of
attractive investment returns on a risk adjusted basis going
forward".
ENDS
LEI: 213800VO4O83JVSSOX33
For further information, please contact:
Foresight Group
Jonathon McManus
(InstitutionalIR@ForesightGroup.eu) +44 (0)20 3667 8147
Citigate Dewe Rogerson +44 (0)20 7638 9571
Toby Moore
Elizabeth Kittle
Lucy Gibbs
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END
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