Foresight acquires further 51% of two solar farms in Queensland

Follow us on Google News:
 Foresight acquires further 51% of two solar farms in Queensland
Image source: © Airdone | Megapixl.com

Highlights

  • UK-based Foresight Solar Fund Ltd acquires the remaining 51% stakes in Australia’s Oakley and Longreach solar farms.
  • The company has gained 100% ownership in both solar farms with this acquisition.
  • It is believed that mergers and acquisitions in the grid-scale solar sector were hampered by concerns related to congestion on the transmission grid, which conveys that some solar farms had problems luring bidders.

UK-based close-ended investment trust Foresight Solar Fund Ltd, recently, has acquired the remaining 51% stakes in Australia’s Oakley and Longreach solar farms, thus gaining full managerial control of the two Queensland solar farms.

The US-based solar power investment Company invests in a diversified portfolio of ground-based solar PV assets in the UK, Spain, and Australia. It is to be noted that Foresight already owned a 49% stake in these farms after it acquired the duo in the year 2017. 

Now, after buying the remaining 51% from Canadian Solar Inc, the Company has acquired 100% ownership of the solar farms. 

The firm has stated the acquisition gives Foresight complete management control over future optimisation initiatives. The acquisition marks the extension of last year’s active streak of investments in renewable energy into early 2022.

Oakley and Longreach benefit from the power purchase agreement signed with the Queensland government concerning the sale of electricity along with large scale generation certificates. According to Foresight, the overall equity consideration of both the assets is equivalent to approximately 1% of the Company’s current net asset value. 

Current trends on how Renewable energy is swapping hands:

According to the independent energy research firm Rystad Energy, anything between 8 gigawatts and 9 GW of renewable energy capacity swapped hands in Australia in 2021, increasing from 2 GW-3 GW in 2020.

As per analysts, going by the current trend and acquisitions by Palisade, First Sentier and Partners Group, one can say that buyers increasingly prefer wind power assets over utility-scale solar.  

However, mergers and acquisitions in the grid-scale solar sector were hampered by concerns related to congestion on the transmission grid, thus conveying that some solar farms had problems luring bidders.

Nonetheless, another factor that impacts solar is the abundant generation during day hours, which sends wholesale prices to zero or into negative territory; in contrast, wind farm owners get some generation when there is a rise in wholesale prices. 

Bottom Line:

The acquisition strengthens Foresight’s global portfolio, while the diminishing revenue profile of both the assets will enhance the predictability of the firm’s portfolio cash flow generation in the medium as well as long term.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.

Featured Articles

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK