Foresight Solar Fund has acquired a 50% equity stake in a 50MW grid battery project next to the Sandridge solar park in the UK, owned by the fund.
The acquisition of a shareholding in Sandridge Battery Storage Limited marks Foresight Solar Fund’s first investment into battery storage following the change to its investment policy which was approved by shareholders in February 2021.
The deal will represent a total investment of up to £12.7m (including construction costs) and will be funded using the Foresight Solar Fund’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 and will be connected to Southern Electric Power Distribution’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 battery will provide 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 fund has also secured a £25m 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, Foresight Solar Fund’s total revolving credit facilities will represent £130m, of which £47m remains undrawn.
The extension of the revolving credit facility will provide the fund with “additional flexibility to pursue further investments into solar and battery storage systems in the UK and internationally”.