Bluefield Solar reduces debt by selling 50% of its solar assets to GLIL

Bluefield Solar sells 50% of a 112 MW solar portfolio to GLIL Infrastructure for £70 million. This transaction is part of a broader strategy to reduce debt and finance new production capacity.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

Bluefield Solar Income Fund Limited, a key player in renewable energy in the UK, has completed the sale of 50% of its 112 MW portfolio of operational solar assets to GLIL Infrastructure, an investment entity made up of UK pension funds.
The transaction, valued at around £70 million, takes place against a backdrop of increased pressure on financial markets and the need for long-term profitability for institutional investors.
This strategic partnership enables Bluefield Solar to meet debt management requirements while maintaining growth prospects in the renewable energies sector.
The proceeds from the sale will be used primarily to reduce the balance of its revolving credit facility (RCF) from £184 million to £134 million, and to fund future development projects.
The sale also improves the company’s financial leverage, a key indicator monitored by analysts and shareholders, lowering the debt ratio to around 43% of gross asset value (GAV).

A strategic repositioning to meet the challenges of the sector

The UK renewable energy market is undergoing significant change, with increasing competitive pressures and stricter regulations on energy investment.
The partnership between Bluefield Solar and GLIL is part of the restructuring necessary to secure returns and diversify funding sources.
GLIL, which brings together pension funds such as Local Pensions Partnership Investments and West Yorkshire Pension Fund, aims to broaden its investments in essential infrastructure, particularly renewable energies, to ensure stable long-term returns.
Phase Three of the partnership between Bluefield Solar and GLIL will invest in around 10% of the company’s development portfolio.
This phase includes the connection of around 17 MW of solar assets to the grid within the next twelve months, through the Auction Round 4 Contracts for Difference (CfD).
The aim of this phase is to diversify assets while optimizing financial resources, a strategic challenge at a time of rising financing costs.

Opportunities and risks in an energy environment in transition

The UK’s energy transition involves a shift in investment towards low-carbon power generation projects.
Recent regulatory changes, as well as the focus on energy security, have created both opportunities and risks for investors.
The repositioning of Bluefield Solar, with a residual stake of 25% in the portfolios combined with GLIL, demonstrates prudent management in the face of these challenges.
At the same time, the earlier acquisition of the Lightsourcebp Portfolio, in which Bluefield Solar holds a 9% stake, demonstrates a strategy of diversification and yield optimization.
However, the increased use of debt to finance growth raises questions about medium-term financial risk management, particularly with interest rates likely to remain high.

Yield prospects and managing investor expectations

Bluefield Solar is maintaining an annual dividend forecast of 8.80 pence per share for the year ending June 30, 2024, a slight increase on the previous year’s 8.60 pence.
This maintenance of dividends, despite the reduction in assets, is intended to reassure investors of the strength of cash flow.
This decision is in line with the company’s disciplined payout policy, which is essential to retain a base of institutional investors looking for regular income in a volatile sector.
The partnership with GLIL and the sale of assets illustrate how Bluefield Solar is readjusting its strategy in the face of a changing market, marked by strong competition and profitability imperatives.
For fund managers and analysts, the key lies in the company’s ability to navigate these dynamics while capitalizing on targeted growth opportunities.

Geronimo Power has started construction of the Bee Hollow solar project, valued at $54mn, in St. Clair County, delivering jobs, tax revenue and a partnership with the IMEA municipal agency.
The British government has approved Tillbridge Solar Farm, a 500-MW solar power plant with 2,310 MWh of energy storage, developed by Tribus Clean Energy and Recurrent Energy.
wpd solar France has launched construction of a 140.6MWc photovoltaic park in Marcy, in the Nièvre department, integrating agricultural co-activity across 632 hectares in partnership with five local farms.
Independent energy producer CVE has inaugurated a 12 MWc solar farm on municipal land in Volx, generating 19 GWh annually and an estimated €5mn in economic returns over 30 years.
GreenYellow strengthens its presence in the French overseas territories with the acquisition of 18 rooftop photovoltaic installations in Réunion, totalling 3.1 MWc in capacity, as part of a strategy to consolidate its decentralised energy assets.
The rapid rise of agri-voltaic projects in France raises concerns over agricultural impact, land speculation and the economic viability of a still-emerging model.
Norwegian developer Empower New Energy expands in North Africa with a strategic partnership involving ten industrial solar sites for self-consumption in Tunisia.
Chinese manufacturer JA Solar has started initial deliveries of its 650W n-type DeepBlue 5.0 module from its automated production site in Yangzhou.
Melvan is issuing local bonds to co-finance two photovoltaic projects in Avignon and Sault, aiming to supplement a total budget of EUR5.5mn ($5.82mn).
The 50 MW Kong solar power plant marks a new step in Côte d’Ivoire’s national grid expansion, with CFA37bn ($60.5mn) in funding and commissioning set for early 2027.
EDP will accelerate two major solar projects in Australia after securing government-backed contracts under the Capacity Investment Scheme.
Westbrooke Real et son partenaire CVE South Africa ont racheté un portefeuille solaire couvrant 91 stations Shell en Afrique du Sud, marquant un transfert d’actifs majeur dans le secteur énergétique local.
The commissioning of the 195 MW Springbok plant introduces the continent’s first utility-scale multi-buyer model, reinforcing the growth of power wheeling in South Africa.
The consortium led by Engie and Masdar has been selected to develop a 1.5 GW photovoltaic plant in Abu Dhabi, aimed at expanding the emirate’s solar capacity under its long-term energy strategy.
T1 Energy invests in private solar cell manufacturer Talon PV to support industrial expansion of the U.S. solar sector and address rising grid demand.
The European Bank for Reconstruction and Development is reviewing a loan for a 100 MW photovoltaic project led by Qair in Tunisia, backed by a long-term power purchase agreement with the national utility.
French independent producer CVE has commissioned an agrivoltaic pilot project in Haute-Loire, aiming to test solar panel integration on a cattle farm ahead of a future 12 MWc installation.
Geronimo Power celebrated the near completion of its 125 MW solar farm in Jackson County, marking a major step for the local economy and regional power grid.
GOLDBECK SOLAR Polska has received the Final Operational Notification for its Zwartowo photovoltaic facility, marking a key regulatory milestone in the development of large-scale solar projects in Poland.
H.E Energy will develop 100 low-voltage solar facilities totalling 10MWDC in Hokkaido for SMFL Mirai Partners, with commissioning scheduled by June 2026.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.