REG - Bluefield Solar Inc. - Interim Report to 31 December 2025
03/03/2026 07:00
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RNS Number : 0256V Bluefield Solar Income Fund Limited 03 March 2026
3 March 2026
Bluefield Solar Income Fund Limited
('Bluefield Solar' or the 'Company')
Interim Report and Unaudited Condensed Interim Financial Statements
for the six months ended 31 December 2025
Bluefield Solar (LON:BSIF), the London listed income fund focused on acquiring
and managing renewable energy and storage assets predominantly in the UK, is
pleased to announce its Interim Report for the six months ended 31 December
2025.
The Company's Interim Report and Unaudited Condensed Interim Financial
Statements for the period ended 31 December 2025 is now available on the
Reports & Publications section of the Company's website
(https://bluefieldsif.com/investors/reports-and-publications/
(https://bluefieldsif.com/investors/reports-and-publications/) )
The Interim Report has been submitted to the National Storage Mechanism and
will shortly be available for inspection at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism)
Highlights
As at 31 December 2025 / 30 June 2025
Net Asset Value (NAV) Dividend Declared for the Period/Prior Year
£638.3m £690.1m 2.25pps/8.90pps (actual)
NAV per share
107.80p 116.56p
Underlying Earnings(1) Total Shareholder Return(2)
(pre amortisation of debt) -24.90% 0.38%
£37.3m £95.3m
Total Return in the Period(3)
Underlying Earnings per share(1) -3.65% -3.38%
(pre amortisation of debt)
6.26p 16.03p Total return to Shareholders since IPO
60.39% 84.59%
Underlying Earnings per share available for distribution(1)
(post amortisation of debt)
2.08p 10.40p
Environmental, Social and Governance (ESG)
ESG KPI's(4)
Estimated generation of over 880 GWh (June 2025: 798 GWh)
Powering the equivalent of over 326,000 UK homes with renewable energy(5)
(June 2025: 295,500)
Avoiding approximately 155,000 tonnes of CO2e(6) (June 2025: 141,200 tonnes)
Construction and Development Pipeline
. 25 MW under construction
· 1,204 MW
consented
2.9 GW
· 47 MW in
planning
(946 MW solar, 1,915 MW battery)
· 1,585 MW development pipeline(7)
1. Underlying earnings is an alternative performance measure employed by the
Company to provide insight to the Shareholders by linking the underlying
financial performance of the operational projects to the dividends declared
and paid by the Company. Further detail is provided in the Report of the
Investment Adviser.
2. Total Shareholder Return is based on share price movement and dividends
paid in the Period. It is defined in the Alternative Performance Measure
appendix.
3. Total Return is based on the NAV movement and dividends paid in the Period.
It is defined in the Alternative Performance Measure appendix.
4. Estimated annual figures based on actual and forecasted generation data for
the Period 1 July 2025 - 30 June 2026.
5. Based on Ofgem's Typical Domestic Consumption Values (TDCV)
6. Figure based on generation data aligned with the relevant Government CO2e
conversion factor. Avoided emissions are disclosed on a gross basis,
reflecting the Company's equity share in investments, without allocating
avoided emissions to debt finance providers.
7. 1.3GW BESS is subject to additional detail from the grid reform process
Results Summary:
Six months ended Six months ended
31 December 2025 31 December 2024
Total operating income -£23,555,143 £2,659,272
Total comprehensive income before tax -£25,183,753 £1,632,220
Total underlying earnings(1) £37,253,748 £40,443,299
Earnings per share -4.25p 0.27p
Underlying EPS available for distribution(2) 2.08p 2.50p
Underlying EPS brought forward(3) 6.51p 3.42p
Total underlying EPS available for distribution 10.24p 6.39p
1(st) interim dividend 2.25p 2.20p
NAV per share 107.80p 126.03p
Share Price as at 31 December 68.5p 94.2p
Total Return(4) -3.65% 0.52%
Total Shareholder Return(5) -24.90% -6.63%
Total Shareholder Return since inception(6) 60.39% 77.19%
Dividends per share paid since inception 91.89p 82.99p
1. Underlying earnings is an alternative performance measure employed by the
Company to provide insight to the Shareholders by linking the underlying
financial performance of the operational projects to the dividends declared
and paid by the Company. It is defined in the Alternative Performance Measure
Appendix in the Interim Report.
2. Underlying EPS is calculated using underlying earnings available for
distribution divided by the weighted average number of shares in issue through
the Period.
3. Underlying EPS brought forward is calculated using the weighted average
number of shares in issue through the Period.
4. Total Return is based on NAV per share movement and dividends paid in the
Period.
5. Total Shareholder Return is based on share price movement and dividends
paid in the Period.
6. Total Shareholder Return since inception is based on share price movement
and dividends paid since the IPO.
Commenting on the Interim results, Michael Gibbons, Chair of Bluefield Solar,
said: "We present in these results another period of good operational
performance by Bluefield Solar despite the reduction in the Company's NAV.
We are pleased to have seen good interest from parties wishing to participate
in the Formal Sale Process and have now narrowed this list of potential
bidders down to a targeted number with more focused due diligence progressing
with this group. As such, the Formal Sale Process continues to progress in
line with expectations, and the Board will provide further updates when
appropriate."
James Armstrong, Founder and Managing Partner of Bluefield Partners LLP, said:
"Bluefield Solar continues to deliver on the primary objective launched at its
IPO in July 2013, namely the payment of a market leading dividend from the
production of electricity from solar PV in the UK. However, the wider capital
market environment has changed materially and with it, a material shift in the
growth prospects of the publicly listed yield focused renewable generators.
This said, our successful partnership with GLIL demonstrates the robust nature
of the Bluefield Group/Bluefield Solar model, one made possible by harnessing
the Bluefield Group's highly unique 140 person-strong, end-to-end platform,
and the Company's operational assets and development pipeline to create
innovative value-enhancing solutions for its shareholders."
Analyst presentation
A remote call for analysts will be hosted by James Armstrong and Neil Wood of
Bluefield Partners LLP at 09:30am today, 3 March 2026. Michael Gibbons will
also be present on the call. For details, please contact Burson Buchanan on
BSIF@buchanan.uk.com (mailto:BSIF@buchanan.uk.com) .
A copy of the presentation is available via the Company's website and an audio
webcast of the presentation will also be made available at 09:30am today.
https://bluefieldsif.com/ (https://bluefieldsif.com/)
LEI Number: 2138004ATNLYEQKY4B30
For further information:
Tel: +44 (0) 1481 742 742
bluefieldteam@ocorian.com (mailto:bluefieldteam@ocorian.com)
Bluefield Solar Board
To be contacted via Ocorian
Tel: +44 (0) 20 7078 0020
www.bluefieldllp.com (http://www.bluefieldllp.com/)
Bluefield Partners LLP (Company Investment Adviser)
James Armstrong / Neil Wood / Giovanni Terranova
Deutsche Numis (Joint Financial Adviser & Broker) Tel: +44 (0) 20 7545 8000
Hugh Jonathan / Matt Goss
Tel: +44 (0) 20 7280 5000
Rothschild & Co (Joint Financial Adviser)
Emmet Walsh / Jack Vellacott
Ocorian
(Company Secretary & Administrator)
Chezi Hanford Tel: +44 (0) 1481 742 742
www.ocorian.com (http://www.ocorian.com)
Media enquiries: Tel: +44 (0) 20 7466 5000
Burson Buchanan (PR Adviser) www.bursonbuchanan.com (http://www.bursonbuchanan.com)
Henry Harrison-Topham / Henry Wilson
BSIF@buchanan.uk.com (mailto:BSIF@buchanan.uk.com)
About Bluefield Solar
Bluefield Solar is a London listed income fund focused primarily on acquiring
and managing solar energy assets. Not less than 75% of the Company's gross
assets will be invested into UK solar assets. The Company can also invest up
to 25% of its gross assets into other technologies, such as wind and storage.
Bluefield Solar owns and operates a UK portfolio of 850MW, comprising 792MW of
solar and 58MW of onshore wind.
Further information can be viewed at https://bluefieldsif.com/
(https://bluefieldsif.com/)
About Bluefield Partners
Bluefield Partners LLP was established in 2009 and is an investment adviser to
companies and funds investing in renewable energy infrastructure. It has a
proven record in the selection, acquisition and supervision of large-scale
energy assets in the UK and Europe. The team has been involved in over £6.3
billion renewable funds and/or transactions in both the UK and Europe,
including over £1.9 billion in the UK since December 2011.
Bluefield Partners LLP has led the acquisitions of, and currently advises on,
over 100 UK based solar photovoltaic assets that are agriculturally,
commercially or industrially situated. Based in its London office, it is
supported by a dedicated and experienced team of investment, legal and
portfolio executives. Bluefield Partners LLP was appointed Investment
Adviser to Bluefield Solar in June 2013.
Extracts from the Interim Report and Unaudited Condensed Interim Financial
Statements
Chair's Statement
Introduction
It gives me pleasure to present my first statement as Chair to accompany your
Company's interim financial report and accounts for the six months ended 31
December 2025 (the 'Period'). However, the issues discussed in my
predecessor's reports of 21 October and 27 February 2025, particularly the
persistent discount of the Company's share price to NAV, and the consequent
difficulty in accessing capital for growth, continue to challenge your
Company. At times during the six-month period the Company's share price had
fallen to below 70 pence, a discount to NAV of roughly 40%, no doubt
negatively impacted by the UK government's consultation on the future
indexation of ROCs and FiTs. This was frustrating for the Board,
particularly at a time when the attraction of relatively inexpensive, clean
solar power was being confirmed on a regular basis - and the dividend yield on
BSIF shares was c.13%.
Solar power investment in the UK market is growing strongly, notwithstanding
the challenges for infrastructure funds, and has committed support from the UK
government, and worldwide. As recently confirmed, solar generates electricity
at a far lower cost, including after having made allowance for its diurnality,
than new nuclear investment, as recent updates from the constructor have
confirmed, and can of course be installed far quicker. The contribution of
solar power to early reductions in carbon emissions while keeping consumer
prices low is a major benefit to society and the environment. Moreover,
solar power is generated in the UK, avoiding the need for imports, and is
located on many sites distributed around the country, adding to security of
supply. For those reasons, the Board has long shared the ambition to lead
the way in building renewables in the UK, and it is therefore a source of
great regret that the Company has effectively been prevented from raising more
capital to do so. However, we have undertaken new initiatives, e.g. through
the strategic partnership with GLIL, and recycling some of our capital, to
allow the Company to build out some of its pipeline. We nevertheless share
the vision that, but for the constraints, there is so much unfinished business
to be done.
Ultimately, of course, the Board is accountable to its shareholders, and in my
many meetings with them in October and November 2025 I received a strong view
that many wished to obtain liquidity, and we have accordingly continued to
work to that end.
I shall be commenting on the current status of our Strategic Review and Formal
Sale Process ('FSP') currently underway, but first I think it is important to
emphasise the highlights of another period of good operational performance by
the Company (in association with the Bluefield Group) over the six months
ending 31 December 2025, despite the unavoidable reduction in the Company NAV
over that Period which has been more fully described in this Report.
Highlights of the Period
I would especially draw attention to:
· the execution of Phase Three of the Company's long-term strategic
partnership with GLIL Infrastructure ('GLIL') being the sale of c.250 MW
portfolio of solar and BESS assets previously 100% owned by the Company, to
Lyceum, a joint venture owned c.25% by the Company, which now comprises 412.1
MW. The Company has used funds from this sale to invest in selected
development opportunities. The RNS link is Signing
(https://www.londonstockexchange.com/news-article/BSIF/signing-of-phase-three-of-strategic-partnership/17187891)
(https://www.londonstockexchange.com/news-article/BSIF/signing-of-phase-three-of-strategic-partnership/17187891)
of Phase Three of Strategic Partnership
(https://www.londonstockexchange.com/news-article/BSIF/signing-of-phase-three-of-strategic-partnership/17187891)
.
· the Company's purchase of the 40% share of the 249 MW Project
Galaxy portfolio which it did not already own from Bluefield Renewable
Developments (BRD) making it wholly owned. We regard this investment as likely
to add significant value to and contribute to future earnings of the Company.
· commencement of construction at the Mauxhall Farm battery energy
storage project, with a target energisation date of March 2026.
· the Board declared the first interim dividend for FY 25/26 of
2.25 pps on 26 January 2026 and is fully covered.
· whilst underlying earnings and the NAV were lower (due to a
decline in revenues per unit of generation, in line with power market
movements), both solar and wind generation increased compared to the same
period in the prior year.
· at the end of the Period, the Construction and Development
Pipeline had been grown to 2.9 GW.
· post Period end, the Company announced that c. 660MW of its
development pipeline had achieved the important Gate 2, Phase 1 connection
status. Receipt of a Gate 2, Phase 1 offer means that projects have had
their connection date confirmed as being between 2026-2030 and so have
attained a highly protected status in the queue of projects to be connected to
the grid.
Valuation and discount rate
The Directors' valuation of the NAV per share decreased to 107.80 pps as at 31
December 2025. One of the main contributory factors, as usual, was the
payment of the dividend, at a level aligned with the Board's previously stated
guidance.
Having discussed for some time the appropriate discount rate to be used in
valuation, the Board accepted the recommendation of the Investment Advisor
that this was the right time for an upward movement from 8.0% to 8.5% for the
reasons set out fully on page 26 in the report of the Investment Adviser. This
change causes a reduction in our NAV of c.2.5pps.
This valuation does not take into account the government's decision, announced
on 28 January 2026, that it would bring forward CPI indexation of ROCs and
FITs to April 2026, which is significantly before such a change had been
expected. That decision post Period end, as we announced on 29 January 2026,
will result in an indicative further reduction in the Company's NAV of c.2%,
and this will be fully incorporated in the next Directors' valuation.
The Board regrets this unexpected government intervention, which singles out
renewable energy generators (e.g. compared to new nuclear) for a significant
downward adjustment to a long-standing support mechanism; this policy change
does not help investor confidence in the sector which is so crucial to achieve
this government's own targets to achieve clean power.
Power prices
The Board has for many years used the same blend of three independent power
price forecasts on a consistent basis for its evaluations and forecasting.
At the end of December 2025 there were further reductions in the blended power
price curve over the years before 2030, with longer term estimated prices
similar to the forecasts in previous quarters.
As current events in the Middle East are illustrating, energy prices can be
influenced by a variety of factors. At the time of writing global gas prices
are coming under upward pressure, and in the UK electricity prices still have
a significant linkage to gas pricing.
Inflation and Interest Rates
The UK RPI inflation rate for 2025 was updated to 4.2% as reported, and this
resulted in an increase in NAV of 1.78 pps.
As a consequence of the rate of inflation remaining higher than generally
anticipated, the Bank of England Base Rate has similarly declined more slowly
than had been forecast.
Environmental, Social and Governance ('ESG')
Once again, a great deal of effort has been applied in implementing the
regulatory reporting requirements in this field. Our commitment to
investment in renewable generation is estimated to avoid 155,000 tonnes of
CO2e and generate enough electricity to power 326,000 UK homes for the year
from 1 July 2025 to 30 June 2026. This report also describes our increasing
focus on nature and the circular economy.
The Board
At the end of November 2025, the Board said farewell to our long-standing
founder NED, and Chair for the last three years, John Scott. We thank him
for his many years of advice and leadership, based on his very comprehensive
experience in the investment company sector and elsewhere. At that juncture
we decided not to recruit a further NED, and so to revert to a five person
Board. The roles and responsibilities of the NEDs were adjusted accordingly,
and I believe that has ensured continued strong leadership in each aspect of
Bluefield Solar's Board oversight.
I am firmly of the view that the experience and expertise of the current Board
members equip the Company well for managing the challenges ahead, including
the ongoing FSP. For example, a number of the Board have considerable
experience in M&A processes and major corporate transactions, and we are
in addition very well advised independently by Deutsche Numis and Rothschild
and Co.
Finally, I think shareholders should be aware of the major increase in
workload since BSIF announced it was exploring strategic initiatives on 27
February 2025, and more recently caused by the ongoing FSP, which have been
conducted by the Company for well over a year now. I am advised that we met 81
times in the last 12 months for formally minuted meetings, and there were many
others. This is a far greater commitment of time and expertise than is normal
or could have been envisaged, and for that reason the Board approved an
additional payment to all NEDs (of c.£21,000 per NED), which is within the
renumeration cap previously approved by shareholders, in part recognition of
so much additional effort, on an interim basis.
Strategic Review and Formal Sale Process
Shareholders will, I hope, realise that what I can say about the current
status of the FSP is very limited indeed; I trust they will understand that
the Board is sure that this approach is in their interests.
The Board was pleased to see good interest from parties wishing to participate
in the FSP announced by the Company on 5 November 2025. The Board has now
narrowed this list of potential bidders down to a targeted number and is
progressing with more focussed due diligence with this group. The FSP
continues to progress in line with expectations, and the Board will provide
further updates when appropriate.
There can be no certainty that an offer will be made, nor as to the terms on
which any offer will be made.
Michael Gibbons
Chair
2 March 2026
Report of the Investment Adviser
Introduction from the Managing Partner of the Investment Adviser
The Company continues to deliver on the primary objective launched at IPO in
July 2013, namely the payment of a fully covered, market leading, dividend
from the production of electricity from solar PV in the UK. However, as
commented in my recent Introductions, the wider capital market environment has
changed materially and with it, a material shift in the growth prospects of
the publicly listed yield focused renewable generators.
As such, after the release of the Company's FY 25 annual statements in October
2025, a Strategic Review and Formal Sale Process ('FSP') announcement was
promptly made by the Board. The Chair's statement refers to this and so I will
focus my update on Bluefield's actions in the past six months and the unique
structure created that has underpinned the Company's sector leading position
since IPO.
Key actions during the Period:
1. Strategic Initiative with GLIL: Announced in December 2023, the
establishment of a Joint Venture partnership with GLIL, encompassed 3 key
phases. The third phase of the sale by BSIF of a 75% interest in a 44MW new
build PV asset and ready to build pipeline of 175MW occurred in August 2025.
The result created a c412MW operating portfolio across the 3 phases, which
combined with a re-financing and refinement of the capital structure, has
delivered cash proceeds to BSIF of £119m with the prospect of a further £10m
in deferred consideration to be received as the ready to build pipeline begins
construction.
2. Selected sales of development assets and pipeline growth: In the
period to December 2025, the IA led the disposal of a 70MW PV/40MW BESS
project whilst taking the opportunity to secure co-development rights on two
further early-stage opportunities (combined 225MW PV/1.3 GW BESS). In doing so
these actions simultaneously created a capital recycling event and increased
the Company's gross development pipeline to c.2.9GW.
3. Purchase of Minority Stake in Development Pipeline: In October
2025, the Company completed the conditional purchase of the remaining minority
interest in 249MW PV portfolio co-developed with Bluefield Renewable
Developments, underpinning the Company's commitment to its highly valuable
pipeline.
Whilst shareholder outlook for listed renewable investment trusts remains
limited, the fact that the Bluefield Group is continuing to effectively
execute key strategic initiatives on behalf of the Company highlights a path
to a bright future. One made possible by harnessing the combination of the
operational asset base of c.851.8MW, the development pipeline of c.2.9GW and
the Bluefield Group's highly unique 140 person-strong platform. In essence, a
formalisation of what the Company essentially is; an Independent Power
Producer (IPP) with the Bluefield Group providing end-to-end services, from
development through to longer term operations. Alongside the unique end to end
platform, the other core driver behind the Company's success has been the
establishment at IPO, by the Bluefield Group, of five core tenets and
continually applied since:
1. Capital Structure: continued focus on prudent use of leverage and
in the near term a gradual reduction in RCF drawings, with long term
financings secured at attractive rates on a fixed interest basis (a current
average cost of debt of c.4.07% on £418.5m of long-term borrowings).
2. Power Sales Strategy: striking Power Price Agreements contracts at
the short end of the power curve (6-30 months), through competitive tender
processes, enabling it to maximise value for shareholders from the most liquid
part of the power market.
3. Active Management: continuing to provide a dedicated workforce of
140 within Bluefield Group, providing an end-to-end service, offering
expertise from development through construction to operation and long-term
management, all with ESG embedded across each function.
4. Proprietary Pipeline: constantly applying the DNA of the business
around accessing primary opportunities (as highlighted by the 2.9GW solar and
storage proprietary pipeline the Investment Adviser has built up exclusively
for BSIF) to provide a platform for continued growth or value accretive
sales.
5. Capital Discipline: Since listing in 2013, a judicious approach to
deployment of capital has been paramount as periods of significant investment
activity have been combined with periods of restraint. This approach was at
the forefront of the structuring of the Strategic Partnership with GLIL.
There is no doubt that continuing to apply the five key tenets above offers a
guide to ensuring a sustainable and valuable Company. The simple fact though,
is this future is brightest if the focus is moved to growth and the cashflows
generated from the operational asset base are used to provide the capital to
enable the Company to take advantage of the unique opportunity its development
pipeline offers.
Whilst my previous statements have contained similar messaging to those in
this update, this is simply because I remain full of conviction that the
foundations built since listing in 2013 alongside the expertise of the
Bluefield Group provide the ideal footing for turning the Company from one in
slow decline to one able to embrace the changes of the wider macro-economic
environment and thrive in the decade to come.
James Armstrong
Managing Partner, Bluefield Partners LLP
1. About Bluefield Partners LLP ('Bluefield')
Bluefield was established in 2009 and is an investment adviser to companies
and funds investing in renewable energy infrastructure. Our team has a proven
record in the selection, acquisition and supervision of large-scale energy and
infrastructure assets in the UK and Europe. The Bluefield team has been
involved in over £6.3 billion renewable funds and/or transactions in both the
UK and Europe, including over £1.9 billion in the UK since December
2011.
Bluefield was appointed Investment Adviser to the Company in June 2013. Based
in its London office, Bluefield's partners are supported by a dedicated and
highly experienced team of investment, operations, finance, legal and
portfolio executives. As Investment Adviser, Bluefield takes responsibility
for selection, origination and execution of investment opportunities for the
Company, having executed over 200 individual SPV acquisitions on behalf of
BSIF and European vehicles.
2. Structure
The Company's corporate structure is summarised below:
[image: corporate structure]
3. Portfolio: Acquisitions, Performance and Value Enhancement
Portfolio Overview
As at 31 December 2025, the Company owned an operational solar portfolio of
121 photovoltaic ("PV") plants (consisting of 79 large scale sites, 39 micro
sites and 3 roof top sites), 6 wind farms and 109 small scale UK onshore wind
turbines, all 100% owned by the Company, with a total capacity of 748.7MW (30
June 2025: 793.2MW). This is referred to as the wholly owned portfolio.
The Company also has a 25% stake in a joint venture portfolio of UK solar
assets in partnership with GLIL Infrastructure (GLIL), who own the remaining
75%. During the Period, in August 2025, Phase Three of the strategic
partnership with GLIL was signed, being the sale of a c.250 MW portfolio of
solar and BESS assets into the joint venture portfolio (Lyceum Solar Ltd),
releasing capital back to the Company. Following the signing of Phase Three
and energisation of Romsey Extension, the total capacity of the joint venture
portfolio is 412.1MW (30 June 2025: 358.5MW).
Therefore, the Company's total portfolio capacity, comprising both the wholly
owned portfolio and BSIF's share in the joint venture partnership, was 851.8MW
as at 31 December 2025, composed of 793.5MW of solar and 58.3MW of onshore
wind.
During the Period, the combined solar and wind portfolio, on the 100% owned
assets, generated a total of 351.2GWh (Prior Period: 319.2GWh), representing
a generation yield of 469.0MWh/MW (Prior Period: 455.78MWh/MW).
Investment Approach, Acquisitions, and Divestments
The Company has taken a disciplined approach to the deployment of capital
since listing, investing only when there are projects of suitable quality at
attractive returns to complement the existing portfolio. In the Period, due to
limited capital availability, the Company has focused on utilising funds from
the sale of assets to the JV with GLIL and recycling of capital from its
development pipeline. The Company has also continued with investment in a
select number of construction projects.
[graph images]
Portfolio Performance and Optimisation
Solar PV Performance - Wholly owned portfolio
In the Period, irradiation levels were 3.3% higher than the Company's
forecasts and 7.9% higher than the Prior Year, whilst generation at 277.8GWh,
was 7.3% lower than forecast. During the Period, generation yield was 402MWh
per MW of installed capacity, 10.8% higher than recorded for the same period
in the prior year. Several grid outages, including a month-long outage at West
Raynham (49.9MW) during the Period, drove Total Generation down.
Table 1. Summary of Solar Portfolio Performance (wholly owned portfolio) for
H1 2025/26:
H1 H1 Delta to H1 Delta 25/26 to
2025/26 2025/26 Forecast (% 2024/25 24/25 Actual (%
Actual Forecast change) Actual change)
Portfolio Total Installed 690 - - 735 -6.1%
Capacity (MW)(1)
Weighted Average 565 547 3.3% 524 7.9%
Irradiation (MWh/m2)(1,2,3)
Total Generation (MWh)(1) 277,832 299,815 -7.3% 267,005 4.1%
Generation Yield 402 434 -7.3% 363 10.8%
(MWh/MW)
Average Total Unit Price 198 200 -1.2% 218 -9.3%
(£/MWh)(4)
Total Revenue (£'000)(4) 54,954 60,009 -8.4% 58,209 -5.6%
Total Revenue (£'000/MW)(4) 80 87 -8.4% 79 0.5%
1. Portfolio includes Mauxhall and Yelvertoft in generation
calculations for H1 2024/25. Mauxhall excluded from 01/07/2025
2. Periods of irradiation where irradiance exceeds the minimum level
required for generation to occur (50W/m(2))
3. Excluding grid outages and significant periods of constraint or
curtailment that were outside the Company's control (for example, DNO-led
outages and curtailments)
4. Revenue includes all income associated with the sale of power and
all subsidy payments. It excludes liquidated damages, insurance claims
amounts, mutualisation rebates, and business rate rebates. ROC recycle revenue
is included assuming a 10% recycle rate for both actual and forecast revenue
[graph images]
Total revenue for the Period was £55.0 million, 8.4% lower than forecast. The
Average Total Power Price was 1.2% below forecast at £198/MWh, and 9.3% lower
per MWh than the prior year, as historically high PPA agreements which
commenced from 2022 onwards came to an end.
Solar PV Optimisation & Enhancement Activity
The Investment Adviser continues to take proactive steps to mitigate risks to
both the short-term and long-term operational performance of the portfolio.
This is achieved through a rolling data-led capital investment programme to
address key risks to operational performance.
Large central inverter revamping projects commenced during the Period, with
key projects due to be completed before the start of the Summer and high
irradiance. These projects are expected to further de-risk the portfolio,
improve portfolio performance both short and long-term and reduce ongoing
costs.
As at 31 December 2025, 392MW of the PV portfolio (being 61% of the solar PV
portfolio) have leases that allow for terms beyond 30 years. Wherever viable,
the Investment Adviser remains focused on negotiating extensions for the
outstanding portfolio leases.
GLIL Partnership Portfolio
Further to the successful signing of Phase Three of the strategic partnership
with GLIL, and the energisation of Romsey Extension, the total UK operational
solar portfolio capacity increased to 412.1MW. During the Period, the
portfolio's generation was broadly in line with expectations, finishing 0.1%
above forecast.
Onshore Wind Performance
As at 31 December 2025, the Company held an operational onshore wind portfolio
of 135 installations, comprising 109 small scale turbines (55-250kW) and 26
larger turbines (850kW-2,300kW), with an aggregated capacity of 58.3MW.
During the Period, the wind portfolio generated 73 GWh, 5.8 % below forecast.
This was mostly due to several turbine outages resulting in extended downtimes
across the portfolio.
Total revenue during the Period was £13.5 million (Prior Year: £13.3
million), with an average revenue per MWh of £184. Revenues achieved were
16.5% below forecast, with the average revenue per MWh being 11.4% below
forecast.
Table 2. Aggregated Wind Portfolio Performance for H1 2025/26:
H1 H1 Delta to Forecast H1 Delta 25/26 to 24/25 Actual
2025/26 2025/26 (% change) 2024/25 (% change)
Actual
Forecast
Actual
Portfolio Total Installed 58.3 - - 58.3 0.0%
Capacity (MW)
Total Generation (MWh) 73,338 77,823 -5.8% 67,993 7.9%
Generation Yield 1,256 1,333 -5.8% 1,166 7.9%
(MWh/MW)
Average Total Unit Price £184 £208 -11.4% £195 -5.8%
(£/MWh)(1)
Total Revenue (£,000) (1) 13,492 16,165 -16.5% 13,281 1.6%
1. Revenue includes all income associated with the sale of power
and all subsidy payments. It excludes liquidated damages, insurance claims
amounts, mutualisation rebates, and business rate rebates. ROC recycle revenue
is included assuming a 10% recycle rate for both actual and forecast revenue
Onshore Wind Optimisation & Enhancement Activity
In Northern Ireland, 17 of the 29 small-scale turbines were identified for
repowering with replacement EWT 250kW turbines. These increase both efficiency
and output, whilst maintaining their respective NIRO accreditation status.
As at 31 December 2025, 14 turbines have been repowered and returned to
operation, with the remaining three turbines having received planning approval
for repowering, with a new 25-year term.
General Portfolio
OFGEM Audits
As part of the industry-wide audits of FiT and RO-accredited generating
assets, the Asset Manager has been working closely with the regulator on
certain assets that have been selected, at random, for audit. All closed OFGEM
audits have had relevant enquiries satisfied, with the respective assets'
accreditation being maintained.
Health & Safety Activities & Cyber Security
Please refer to the Environmental, Social and Governance report for further
information on health & safety activities and cyber security.
3. Power Purchase Agreements
The Company actively monitors power market conditions, ensuring that contract
renewals are spread evenly through any 12-month period, with competitive
tender processes on both fixed and floating price options run for PPA renewals
in the 3 months prior to the commencement of a new fixing period.
Flexibility within the Company's capital structure enables PPA counterparties
to be selected on a competitive basis and not influenced by lenders requiring
long-term contracts with particular offtakers. This means the programme of
achieving value and diversification from contracting with multiple
counterparties is executed for the benefit of Shareholders.
As at 31 December 2025, the average contractual term of PPAs across the
portfolio is 29.7 months without adjusting for capacity (Prior Year: c. 26
months). The Company has a price confidence level of c. 76% at December 2025
and c. 51% at 30 June 2026 (on a capacity basis), representing the percentage
of the Company's portfolio that already has fixed prices in place and
therefore no exposure to power market fluctuations. Looking ahead, the
strategy has also secured power fixes, and thus revenue certainty, at levels
that are in line with the latest forecasters' expectations.
Table 3. PPA Fixed Power Prices (average for fixes completed vs blended
average forecaster prices)
Metric Jan-26 Jul-26 Jan-27 Jul-27
BSIF Portfolio Weighted Average Contract Price (£/MWh) 88.7 64.3 72.4 58.2
Capacity with Fixed PPA price 566MW 379MW 235MW 17MW
% of BSIF total capacity under PPA Fixed Power Price contract 76% 51% 31% <10%
Blended Average of forecasters' nominal terms power prices per 31 December 65.2 65.2 62.8 62.8
2025 valuation (£/MWh)
Footnote: data excludes assets which are part of the Strategic Partnership
with GLIL; values shown are as at the beginning of the month
The Investment Adviser believes its PPA policy is the best strategy for
Shareholders, who are looking for stable revenues and forecastable,
sustainable dividends with high visibility of revenues on a rolling multiyear
basis.
5. Proprietary Pipeline
Since 2019, the Investment Adviser has been implementing its project
development and new build strategy across the solar value chain to ensure that
the Company has the option to build its market share amongst UK solar power
producers. During this time, the Company has signed co-development agreements
to fund new solar sites, as well as selectively funding battery storage
developments, which will enable the diversification of the Company's revenues
and allow us to monetise the expected increases in volatility of power prices
in the future.
This focus on development activities has enabled the Company to identify a
significant pipeline of assets which can be built in the period to 2030. As
confirmed in the RNS issued to the market on 23 January 2026, BSIF has
received Gate 2, Phase 1 offers on c. 660MW of its development pipeline (540MW
solar PV and 120MW BESS). This means these projects have had their connection
date confirmed as being between 2026-2030 and so have attained a highly
protected status in the queue of projects to be connected to the grid. As
these projects progress, the Company is working with selected construction
contractors to ensure that projects are designed and built to a high
specification for long-term performance.
The new build strategy has delivered well on its objectives thus far; the
first three developments to enter the construction phase (Yelvertoft, Mauxhall
Farm solar and Romsey Extension) have all been connected to the electricity
network and the development pipeline now stands at over 1.5GW. Nine sites have
achieved CfDs across AR4, AR5 and AR6, representing potentially over 450MW of
installed capacity. The Investment Adviser has also submitted several projects
for the AR7 auction round and awaits the outcome for these projects.
The following sections provide a more detailed update on both our construction
and development programmes.
Construction Programme
As at 31 December 2025, 102MW of solar PV projects had been energised and had
passed provisional acceptance tests. Performance will be monitored closely to
ensure it is in line with the contracts over the two year warranty period.
These projects are Yelvertoft Solar Farm (a 48.4MW solar PV park in
Northamptonshire) and Mauxhall Farm Energy Park (a 44.5MW solar PV project in
North East Lincolnshire) and Romsey X (a 9.2MW solar PV extension to Romsey
solar farm in Hampshire). Mauxhall Farm is planned to be a co-located project
and construction of a 25MW battery energy storage scheme is underway.
As at the end of the Period, the Company had a pipeline of future solar assets
with a capacity of 694MW and battery storage assets with 510MW capacity that
are fully consented and are in pre-construction. The projects have connection
dates between 2026 and 2035.
Of these, the Company is actively exploring EPC contracts for seven projects
(c. 360MW capacity in total), which have CfDs under AR4, AR5 and AR6. EPC
agreements for the Company's new build projects are expected to be fixed price
contracts comparable to Yelvertoft and Mauxhall Farm and will require
contractors to provide full procurement activity and to supply all materials.
The Investment Adviser completes a full assessment of each contractor's
procurement and supply chain management processes to ensure compliance with
the Company's ESG policies and standards.
Development Programme
The Investment Adviser has been pursuing its development strategy since 2019
to enable the Company to continue to be a key player in the UK renewable
energy market. Since this time, a portfolio of over 1GW of solar and 1.5GW of
batteries has been funded across 31 development projects. The Company has an
investment limit in pre-construction development stage activities, restricted
to 5% of gross assets; currently less than 3% is committed.
Currently, no value is attributed to projects without planning consent. Once
developments receive planning consent and move from the development stage to
pre-construction, the Investment Adviser believes it is appropriate to reflect
this change in the Company's valuation. At this point in their lifecycle, the
projects will have received all the necessary planning consents, land rights
and valid grid connection offers and so have discernible value beyond the
direct costs of development.
The pipeline status and valuation as at the Period-end is summarised in the
graphic below. In the six-month period to 31 December 2025, 4 projects
received planning consent, with a cumulative capacity of 105MW solar and 120MW
battery storage.
Current pipeline status and valuation at 31 December 2025
Pipeline Valuation
[graph images]
Development and Construction Pipeline (2.9GW)
[graph images]
Pipeline Technology - Capacity Split
[graph images]
6. Analysis of underlying earnings
The total generation and revenue earned in the Period by the Company's wholly
owned portfolio, split by subsidy regime, is outlined below:
Subsidy Regime Generation (MWh) PPA Revenue (£m) Regulated Revenue (£m)
FiT 32,634 2.3 7.0
4.0 ROC 9,248 0.7 2.6
2.0 ROC 9,979 0.8 1.5
1.6 ROC 51,875 4.3 6.4
1.4 ROC 122,757 12.2 12.8
1.3 ROC 15,738 1.2 1.6
1.2 ROC 30,818 3.0 2.9
1.0 ROC 19,943 1.2 1.5
0.9 ROC 37,263 2.7 2.5
CfD 20,915 1.0 0.3
Total 351,170 29.4 39.1
The Company includes ROC recycle assumptions within its long-term forecasts
and applies a market based approach on recognition within any current
financial year, including prudent estimates within its accounts where there is
clear evidence that participants are attaching value to ROC recycle for the
year.
The key drivers behind the changes in Underlying Earnings for this Period are
the combined effects of lower PPA pricing, lower than expected wind speeds and
grid outages.
Underlying Portfolio Earnings
Half year Period to Half year Period to Full year to Full year to
31 Dec 25 31 Dec 24 30 June 25 30 June 24
(£m) (£m) (£m) (£m)
Portfolio Revenue 68.1 74.8 161.8 183.8
Liquidated damages and Other Revenue(1) 1.8 1.0 3.5 12.6
Earnings from JV 3.8 7.9 9.9 0.0
Portfolio Income 73.7 83.7 175.2 196.4
Portfolio Operating Costs -18.3 -22.6 -36.7 -38.2
Fund Operating Costs(2,3) -4.0 -4.6 -8.2 -8.6
Total Operating Profit (EBITDA) 51.4 56.5 130.3 149.6
Project Finance Interest Costs -5.9 -6.6 -12.5 -12.7
Group Corporation Tax -4.3 -3.1 -9.6 -13.9
Electricity Generators Levy - -0.8 -2.9 -16.2
Group Debt Costs(4) -4.1 -5.6 -10.0 -12.2
Underlying Earnings 37.2 40.4 95.3 94.6
Group Debt Repayments -24.9 -25.6 -33.5 -30.1
Underlying Earnings available for distribution 12.3 14.8 61.8 64.5
Brought forward reserves 38.5 20.3 20.3 58.4
Earnings from Disposals 31.0 71.4 92.0 0.0
Repayment of RCF - -50.5 -50.5 -10.0
Share Buybacks - -10.4 -10.6 -9.4
New and Portfolio Investments -21.3 -7.7 -21.7 -30.1
Total funds available for distribution 60.5 37.9 91.3 73.4
Target distribution N/A N/A 52.7 53.1
Declared/Actual Distribution in relation to the Period 13.3 13.0 52.7 53.1
Underlying Earnings carried forward 38.5
N/A N/A 58.4
1 Other Revenue includes ROC mutualisation, ROC recycle late payment,
insurance proceeds, O&M settlement agreements and rebates received.
2 Includes the Investment Adviser fees and other fees at Company and BR1
level.
3 Excludes one-off transaction costs and the release of up-front fees related
to the Company's debt facilities
4 RCF Interest and commitment fees
Note: Due to rounding some totals may not exactly equal the sum of their
individual components.
The table below presents the underlying earnings on a per share basis.
Half year to Half year to Full year to Full year to
31 Dec 25 31 Dec 24 30 June 25 30 June 24
(£m) (£m) (£m) (£m)
Target Distribution - £m N/A N/A 52.7 53.1
Total funds available for distribution (inc. reserves) - £m 91.3 73.4
60.5 37.9
Average number of shares in the Period* 592,080,033 592,319,217 594,651,711 609,849,113
Target Dividend (pps) N/A N/A 8.90 8.80
Total funds available for distribution (pps) 10.24 6.39 15.41 12.00
Total Dividend Declared in relation to the Period (pps) 2.25 2.20 8.90 8.80
Reserves carried forward (pps) ** N/A N/A 6.51 3.40
* Average number of shares is calculated based on the weighted average shares
in the Period.
** Reserves carried forward are based on the shares in issue at the point of
Annual Accounts publication being 592m shares for 30 June 2025 and 597m shares
for 30 June 2024).
7. NAV and Valuation of the Portfolio
The Investment Adviser is responsible for advising the Board in determining
the Directors' Valuation and, when required, carrying out the fair market
valuation of the Company's investments.
Valuations are carried out on a quarterly basis at 30 September, 31 December,
31 March and 30 June each year, with the Company committed to conducting
independent reviews as and when the Board believes it benefits Shareholders.
As the portfolio comprises only non-market traded investments, the Investment
Adviser has adopted valuation guidelines based upon the IPEV Valuation
Guidelines published by the BVCA (the British Venture Capital Association).
The application of these guidelines is considered consistent with the
requirements of compliance with IFRS 9 and IFRS 13.
Following consultation with the Investment Adviser, the Directors' Valuation
adopted for the portfolio as at 31 December 2025 was £761.3 million (30 June
2025: £820.3 million).
Valuation Component (£m) Dec 2025 June 2025 Dec 2024 June 2024
DCF Enterprise Value of Portfolio 892.1 971.5 954.4 1,100.0
DCF Enterprise Value of JV Portfolio 129.8 123.1 128.2 36.5
Consented development/construction and repowering projects 38.1 36.2 112.6 110.3
Deduction of Project Co debt -418.5 -446.1 -432.1 -423.2
Project Net Current Assets 119.8 135.6 119.7 141.9
Directors' Valuation 761.3 820.3 882.8 965.5
Portfolio Size (MW) 851.8 882.9 882.9 834.0
Discounting Methodology
The Directors' Valuation is based on the discounting of post-tax, projected
cash flows of each investment, based on the Company's current capital
structure, with the result then benchmarked against comparable market
multiples, if relevant. The discount rate applied on the project cash flows is
the weighted average discount rate. In addition, the Board continues to adopt
the approach under the 'willing buyer/willing seller' methodology, that the
valuation of the Company's portfolio be appropriately benchmarked to pricing
against comparable portfolio transactions.
Key factors behind the valuation
There have been several factors that have been considered in the Investment
Adviser's recommendation to the Directors' Valuation (and which are quantified
in the NAV movement chart on page 28):
(i) Despite short-term interest rates continuing their decline through
2025, the Directors' portfolio discount rate has been increased to 8.50% (June
2025: 8.00%). The discount rate remains a key area of consideration but with
continuing low transaction volumes of operational solar portfolios, UK Gilt
yields remaining elevated over the course of the last twelve months, and
increased market uncertainty as a result of recent ROC and FiT indexation
consultations, the decision has been made to increase the discount rate by
50bps with a view to continuing to monitor the discount rate in future
quarters.
(ii) Renewable Energy Guarantees of Origin have been updated to reflect
the latest available forecast and checked against pricing achieved in the
latest round of tendering.
(iii) Inclusion of the latest forecasters' power price curves as at 31
December 2025 has resulted in a reduction in the valuation as there have been
decreases in projected electricity prices in the near-term due to revised gas
prices driven by additional capacity. Further information regarding power
prices is included in section 3 of this report.
(iv) Updated 2025 to actual RPI inflation in-line with Bloomberg.
By reflecting these core factors in the Directors' Valuation for 31 December
2025, the enterprise value of the operational portfolio is £1,022 million
(June 2025: £1,095 million), representing an effective price for the solar
component of £1.07m/MW (June 2025: £1.11m/MW). These metrics sit within the
pricing range of precedent market transactions, and the 'willing buyer-willing
seller' methodology upon which the Directors' Valuation is based.
The assumptions set out in this section remain subject to continuous review by
the Investment Adviser and the Board.
Power Prices
As has been the case for some years, a blend of the forecasts(( 1 (#_ftn1) ))
from three leading consultants is used within the latest Directors' Valuation,
as shown in the graph below. This is based on the latest forecasts available
as at 31 December 2025.
The curves used in the 31 December 2025 Directors' Valuation reflect the
following key updates:
1. Forward electricity prices from 2026 to the 2030 broadly trending
lower, driven by pressure on gas prices through increased production capacity;
2. Beyond the mid-2030s, power prices have remained broadly consistent
with the previous two quarters.
Change in blended power price forecast
[graph images]
NAV Bridge (£m)
[graph images]
Movements in NAV
The Company's NAV decreased to £638.3m (107.80pps) in December 2025 from
690.1m (116.56pps) in June 2025. The movement in NAV was driven primarily by
the following factors:
Power Prices
This is a Combination of power curve impact of -1.48pps and PPA impact of
+0.01pps. The power curves available from the Company's three leading
independent power forecasters as at 31 December 2025 report electricity prices
falling slightly, particularly in the period 2026 to 2030. The decline is
attributed to a combination of factors, including downward pressure on gas
prices.
REGO Update
REGO prices were updated for the latest annual REGO curve available and
contracted REGOs struck with counterparties.
Actual Generation vs Forecast
Solar portfolio generation for the Period was 7.3% below forecast and wind
portfolio generation was 5.8% below forecast resulting in the total portfolio
revenue of £3.1m below forecast (-0.52pps).
Impact of Grid Outages
This reflects the grid outages and curtailments outside of the Company's
control. The impact for the Period being £1.6m of lost revenue (-0.28pps).
Dividends Paid
Total dividends paid in the Period amounted to £26.6m (-4.50pps).
Discount Rate Update
The discount rate has been increased by 50bps from 8% to 8.5% resulting in a
decrease in NAV of £14.8m (-2.51pps).
Inflation Update
The RPI inflation for 2025 was updated to 4.2% in line with actual inflation
as per Bloomberg resulting in an increase in NAV of £10.5m (+1.78pps).
Other Movements
This movement reflects the change of the calculation date of cash flows from
June 2025 to December 2025, along with tax, degradation, debt, and working
capital adjustments.
UK ROC and FiT Consultation
On 31 October 2025, the UK's Department for Energy Security and Net Zero
published a consultation regarding potential changes to the indexation of
Renewable Obligation Certificates ('ROCs') and Feed-in Tariffs ('FiTs').
Post Period end, on 28 January 2026, the UK's Department for Energy Security
and Net Zero published a response to the consultation and has confirmed the
intention to proceed with what was described as Option 1 for both ROCs and
FiTs. This means that there will be a switch from RPI to CPI-based indexation
for both ROCs and FiTs in the next annual adjustment scheduled in April 2026,
rather than in 2030 as originally planned.
The Company confirms this adjustment will result in an indicative NAV
reduction of c. 2% (c. 2 pence per share) as anticipated in Bluefield Solar's
announcement responding to the consultation on 7 November 2025.
Reconciliation of Directors' Valuation to Balance sheet
Balance at Period End
Category 31 December 2025 (£m) 31 December 2024 (£m) 30 June 2025 30 June 2024 (£m)
(£m)
Directors' Valuation 761.3 882.8 820.3 965.5
Portfolio Holding Company Working Capital 12.2 (2.8) 4.7 (1.5)
Portfolio Holding Company Debt (134.9) (133.5) (134.9) (184.0)
Financial Assets at Fair Value per Balance sheet 638.6 746.5 690.1 780.0
Gross Asset Value 1,191.7 1,312.1 1,271.1 1,388.7
Gearing (% GAV*) 46.4% 43% 45.7% 43%
*GAV is the Net Assets, as at 31 December 2025, of £638.3m plus RCF of
£134.9m and third party portfolio debt of £418.5m (giving total debt of
£553.5m).
Enterprise Valuation sensitivities
Valuation sensitivities are set out in tabular form in Note 7 of the interim
financial statements. The following diagram reviews the sensitivity of the EV
of the portfolio to the key underlying assumptions within the discounted cash
flow valuation.
[graph images]
8. Financing
Debt Strategy
Since its IPO, the Company has focused on a simple and defensive approach to
debt. This means having debt agreements that have, primarily, fixed interest
rates and are amortising. Debt is split into (1) long-term asset-level debt,
and (2) a revolving credit facility at fund-level for short-term funding. Debt
in the portfolio is generally not subject to stringent lender requirements on
PPAs, allowing the Company to take advantage of more competitive PPA pricing.
The Company's weighted average cost of long-term debt at 31 December 2025 is
4.07% (30 June 2025: 3.95%) and is largely locked in via fixed interest rates.
Whilst the Company has some index-linked debt, it also has significant levels
of RPI linked revenues, leaving the Company a net beneficiary of inflation.
The revolving credit facility, detailed below, is the only short-term
floating-rate debt instrument in the portfolio and represents 24% of the total
debt balance. 73% of asset-level debt has a fixed interest rate. 26% of the
long-term debt principal is inflation-linked.
Revolving Credit Facility
In May 2025, the Company extended the term of its Revolving Credit Facility
(the 'RCF') with RBS International, Santander UK and Lloyds Bank Plc by two
years to May 2027, reducing the commitment of the facility from £210 million
to £150 million. The RCF also has an uncommitted accordion feature allowing
it to be increased by up to a further £30 million.
The RCF has Green Loan status, which introduces enhanced monitoring and
reporting obligations in line with the Company's Green Financing Framework.
The margin for the facility is 1.85%, a reduction from the previous margin of
1.90% as a benefit of the Green Loan status.
The RCF balance drawn as at 31 December 2025 is £134.9 million (30 June 2025:
£134.9 million).
External Debt
Excluding the Company's RCF, outstanding loans from third-party lenders as at
31 December 2025 totals to £418.5 million, with each loan secured against a
portfolio of assets and fully amortising within the life of the respective
asset's subsidies.
Syndicate - Fund RCF 134.9 May-27 0% 5.34%
Bayern LB - Project Finance 4.6 Sep-29 100% 5.67%
Syndicate - Project Finance 57.2 Dec-33 100% 4.37%
Aviva (fixed) - Project Finance 71.6 Sep-34 100% 2.88%
Aviva (index-linked) - Project Finance 59.6 Sep-34 100% 3.20%
Macquarie (fixed) - Project Finance 6.2 Mar-35 100% 4.60%
Macquarie (indexed-linked) - Project Finance 18.3 Mar-35 100% 4.75%
Gravis (index-linked) - Project Finance 32.4 Jun-35 100% 6.15%
NatWest - Project Finance 100.3 Dec-39 85% 3.17%
Strategic Partnership Portfolio 68.3 Dec-35 100% 5.85%
Total/Wtd Avg 553.5 73% 4.38%
Total/Wtd Avg excl. RCF 418.5 96% 4.07%
Note: Index-linked debt treated as fixed for the purposes of this table as
proportion fixed represents interest rate risk only.
Due to rounding some totals may not exactly equal the sum of their individual
components.
GAV Leverage
The Group's total outstanding debt as at 31 December 2025 was £553.5 million
(30 June 2025: £581 million) and its leverage stands at 46.4% of GAV (30 June
2025: 45.7%).
9. Market Developments
UK renewable generation capacity and deployment
Latest Government data showed that UK solar PV capacity stood at c.21GW across
c.1.9 million installations. Of this amount, c.7GW (34% of the total solar
capacity in the UK) and c.5GW (24%) is accredited under the RO and FiT
schemes, respectively, c.9GW (40%) is unaccredited and less than 6% is under
the CfD scheme. Each of the onshore and offshore wind installed capacity
stands at around 16GW and 17GW, respectively. The UK has over 6GW of
operational battery storage capacity, according to data from energy
association RenewableUK.
The UK's total renewable generation capacity is projected to continue to grow
over the coming years as the Government strives to meet its Clean Power 2030
targets. Deployment is expected to be supported by several policy initiatives,
including the CfD scheme and various significant planning and grid reforms
already underway.
The Clean Power 2030 Action Plan outlines the Government's roadmap to
achieving a clean power system by 2030, based on expert independent advice
from the National Energy System Operator. The plan focuses on accelerating the
deployment of renewable energy, investing in new innovative flexible
technologies and policy and legislation reforms to support the energy
transition.
The chart below illustrates the distribution of total installed capacity
across different renewable generation technologies at 30 September 2025
compared with a year earlier.
[graph images]
Secondary market transactions and construction activity
Transactional activity in the UK renewables market remains depressed, despite
ambitious decarbonisation targets and increasing preferences by customers for
clean energy. Several infrastructure funds have continued to complete capital
recycling via asset disposal programmes to demonstrate value and support
deleveraging efforts.
Some construction activity has been observed in the UK solar and battery
storage area, although this comes against a backdrop of supply chain
challenges, elevated development costs and grid connection timing
uncertainties. Converting the UK's significant development pipeline into
operational solar and storage projects over the next five years will require
developers to adopt innovative approaches to overcome challenges surrounding
high construction costs, grid connection challenges and limited access to new
capital.
With 793.5MW of solar capacity - comprised of wholly owned and BSIF's share in
the joint venture partnership - the Company maintains a strong position within
the UK solar market, owning c. 4% of the UK's utility-scale solar PV capacity.
10. Regulatory Environment
The regulatory environment is undergoing significant change as the Government
seeks to support renewable energy deployment in a co-ordinated way across
multiple segments, including planning, network build, connection regimes,
locational charges and generation and storage support mechanisms, in order to
deliver on its Clean Power 2030 Action Plan. Key themes are outlined below.
Update on Contracts for Differences (CfD)
In July 2025, the Government released its response to the consultation on
further reforms to the CfD scheme for AR7 which ran from February - March
2025. Several positive reforms were announced, including CfD contract tenor
extension from 15 years to 20 years for solar and other key technologies. This
marks a significant positive step forward for the renewables sector. The
Government also committed to increasing the length of the target commissioning
window for solar new build projects from 3 months to 12 months, providing
developers with greater flexibility to adapt to unexpected construction
related events and aligning solar with other "Pot 1" technologies.
The Government published the auction results for AR7 - pot 3 (fixed-bottom)
and pot 4 (floating) - offshore technologies in January 2026. A total of c.
8.4GW secured contracts across pot 3 (c.8.2GW) and pot 4 (c. 0.2GW) projects.
The final budget for pot 3 was c. £1.78 billion which was almost double the
original level of £900 million due to new rules permitting the Secretary of
State to view anonymised sealed bids for fixed-bottom offshore wind before
finalising the auction budget. The auction results for AR7a - pot 1 and 2
technologies - were released in February 2026. A record 4.9GW was awarded to
solar photovoltaic technologies at a clear price of £46.82/MWh (in 2012
prices) which was c. 6% lower than the equivalent AR6 clear price of
£50.07/MWh. The budget set for pot 1 is £295 million and pot 2 £15 million.
The movement in AR7a administrative strike prices compared with AR6 was mixed
across technologies. The ASP for solar (Pot 1) was £54/MWh (in 2012 prices),
down from £61/MWh in AR6 (or c. 11%) driven in part by longer tenors and
lower cost assumptions, while onshore wind (Pot 1) was up by just c. 3% at
£66/MWh driven in part by lower onshore wind load factor assumptions.
The Government's consultation on proposed refinements for AR8 and future
rounds closed on 30 January 2026. Several reforms were proposed aiming to
support timely delivery of renewable generation capacity, maintain investor
confidence and ensure the CfD scheme remains fit for purpose especially as
projects increase in capacity and complexity. We welcome opportunities to
engage collaboratively with the Government, and we look forward to
contributing towards the success and evolution of the CfD scheme.
Renewable Obligation Certificates and Feed-in Tariffs
In October 2025, the Government published a consultation regarding potential
changes to the indexation of Renewable Obligation Certificates ('ROCs') and
Feed-in Tariffs ('FiTs'). In January 2026, the Government confirmed its
intention to proceed with what was described as Option 1 for both ROCs and
FiTs. This means that there will be a switch from RPI to CPI-based indexation
for both schemes in the next annual adjustment scheduled in April 2026, rather
than 2030 as originally planned. Bluefield Solar remains committed to
supporting the UK's energy transition and will continue to advocate for policy
stability and fair treatment of renewable investments.
Review of Electricity Market Arrangements
The Government is expected to publish its Reformed National Pricing (RNP)
Delivery Plan in early 2026, following the publication of the Review of
Electricity Market Arrangements ("REMA") Update in July 2025. The Strategic
Spatial Energy Plan is expected to play a key part in the RNP and will assess
and map the optimal locations, types and quantities of infrastructure required
to achieve a cleaner energy system. The Investment Adviser looks forward to
continuing collaborative initiatives with Government and supporting its Clean
Power 2030 Action Plan.
Bluefield Partners LLP
2 March 2026
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