Foresight Solar Fund has made its first battery storage investment with the acquisition of a 50% stake in Sandridge Battery Storage Limited (SBSL).

The London-listed company is investing up to £12.7m (€14.6m) to buy its stake in SBSL alongside JLEN Environmental Assets which will also acquire a 50% equity stake.

SBSL holds the development rights to construct the Sandridge Battery Storage project, a 50MW lithium-ion battery energy storage system based in Melksham, UK.

Foresight Solar said it will fund the deal with its existing revolving credit facilities, adding that it has had a £25m extension of the revolving credit facility provided by NatWest.

The extension of the revolving credit facility will provide the company with additional flexibility to pursue further investments into solar and battery storage systems in the UK and internationally, the investment company said.

Managed by Foresight Group, Foresight Solar Fund is a closed-end investment company investing in a diversified portfolio of ground-based solar photovoltaics assets in the UK, Spain and Australia.

The acquisition marks the company’s first investment into battery storage systems following the change of investment policy which was approved by shareholders in February.

Alex Ohlsson, chairman of Foresight Solar Fund, said: “Battery storage systems are a complementary and exciting new growth area for Foresight Solar and we are delighted to have acquired a significant stake in the 50MW Sandridge Battery Storage project, the first of our investments in this asset class.

”Diversification into battery storage systems will provide increased scale, diversification and operating efficiencies alongside the company’s existing portfolio and should offer an additional source of attractive investment returns on a risk-adjusted basis going forward.”

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