The deal that woke up the solar sector

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And finally, the agreed £548 million takeover of Bluefield Solar Income Fund by Drax Group has done something the sector has been waiting years for.

It has put a credible private market price tag on a listed renewable energy fund at a moment when the whole sector has been languishing at bargain-basement valuations.

The bid landed as funds like NextEnergy Solar and Foresight Solar were sitting at yawning discounts to net asset value, the legacy of rising interest rates since 2022 eroding the relative appeal of yield-generating infrastructure.

Both rose on the news, with Cavendish arguing the two funds, whose portfolios most closely resemble Bluefield’s in their concentration of ROC-backed UK solar assets, stood to benefit most from the valuation signal the deal provides.

Octopus Renewables Infrastructure Trust, Greencoat UK Wind and The Renewables Infrastructure Group also caught a lift, though all remain at substantial discounts, illustrating how much ground still needs to be recovered.

Perhaps the most encouraging element is Drax’s stated rationale: up to £2 billion of planned renewable investment by 2031, suggesting well-capitalised energy companies are willing to pay private market prices for assets the public market has persistently undervalued.