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Foresight Solar acquires interests in Oz sites

Power News - Published on Wed, 03 Jan 2018

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Foresight Solar Fund Ltd has completed acquisition of a portfolio consisting of three construction stage assets in Queensland, Australia, representing 117MW of peak capacity once installed,from Canadian Solar Inc. The assets are Longreach Solar Farm (17 MW), Oakey 1 Solar Farm (30 MW) and Oakey 2 Solar Farm (70 MW) with the company acquiring 49% interests in each of Longreach and Oakey 1, and a 100% interest in Oakey 2. Longreach and Oakey 1 are expected to connect to the grid in March and September respectively, while Oakey 2 is expected to connect to the grid in October.

Longreach and Oakey 1 are under construction and Oakey 2 is due to start construction now financial close has been reached. Project finance for Longreach and Oakey 1 was already in place when the company signed binding contracts to acquire the projects. In connection with the completion of the acquisition of the Acquisition Portfolio, the Company has further secured a senior debt facility for Oakey 2. The company said it taken advantage of current attractive electricity prices and increased the proportion of fixed price arrangements from 7% to 31% of the electricity sales of the UK portfolio.

It said this arrangement was for the period 1 Dec to 31 Mar 2019 at a weighted-average price of £43.26/MWh. It said this provided greater visibility over future cash flows and limits potential price volatility. An update said:'The performance of the UK portfolio for the second half of 2017 to date has improved throughout the period when compared with the first half of the year. 'The issues experienced in the first half of the year at specific sites have now been substantially resolved as a result of the efforts of Foresight's asset management team and the remedial plan implemented on the Sun Edison sites.

The expected energy generation figures for 2017 will be below expectations given the works performed at sites throughout the year and low levels of irradiation, currently showing an irradiation shortfall of c. 3% for the year to date. 'The lower levels of production for 2017 have been significantly outweighed by financial compensation received through Liquidated Damages and the asset manager is confident that future production will be robust.

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Posted By : Nanda Koijam on Wed, 03 Jan 2018
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