Foresight Solar Fund, a UK-based investment group, has announced its decision to divest its Australian portfolio, which includes 170MW of operational solar photovoltaic capacity and 122MW of battery energy storage systems (BESS).
On September 18th, the group announced that its Board had started the second phase of the divestment program by initiating the sale process for the Australian portfolio.
The closure of the sale is anticipated to take place in the first half of 2025. The primary intention at present is to utilize the proceeds primarily for further debt reduction.
Foresight Solar’s Australian portfolio experienced challenges due to adverse weather conditions over the past year. As a result, the net asset value (NAV) of the group declined to £656.8 million (US$878.21 million), compared to the previously reported figure of £697.9 million at the end of 2023, according to Solar Power Portal, our affiliated website.
In addition to the aforementioned benefits, the completion of the sale will allow the company to redirect its attention towards the UK and European markets. Foresight Solar has a robust presence in Europe and has recently announced a significant 400MW framework agreement with Chelion Iberia to develop early-stage battery energy storage system (BESS) projects in Spain.
Spain has emerged as a key area of interest for Foresight Solar, primarily due to its favorable irradiation conditions. In March of last year, Foresight Solar made significant progress by acquiring a pipeline of 467MW solar photovoltaic projects in the Iberian Peninsula. These projects were secured through partnerships with Grupo Cuerva, a renewable energy company, and an undisclosed Spanish developer.
Foresight Solar’s portfolio in Australia is divided among four projects, with three located in Queensland and one in Victoria. Among these, the Bannerton solar PV project in Victoria stands out as the largest, boasting a capacity of 110MW. However, as Foresight holds a 48.5% stake in the project, its contribution to the portfolio amounts to 53MW.
The remaining portion of the portfolio comprises Oakey 1, Oakey 2, and Oakey 3 projects, with respective generation capacities of 30MW, 70MW, and 17MW.
According to Alexander Ohlsson, the chairman of Foresight Solar, the sale of the Australian portfolio will mark a significant milestone for the company.
“Advancements have been achieved in the second phase of the divestment initiative subsequent to the 50% stake sale in the Lorca portfolio last November. The upcoming sale of our Australian portfolio is poised to be a pivotal moment, redirecting our focus towards the UK and Europe. In these regions, we have a promising array of opportunities that align with our capital allocation strategies,” stated Ohlsson.
