Calling Time on BSIF

The Oak Bloke May 5

Feeling Blue on Bluefields

(This article was released on YouTube on May 4th, May the fifth be with you who didn’t tune in)

Bought BSIF Bluefield Solar at 68.2p and May 1st sold at 83.8p. Thanks for being man’s best friend, Bluey.

But it’s time to give you the shoe-y Bluey. Bwooah! May the fourth is not with you Bluey, sorry. Don’t write in or call the RSPCA, no actual dogs were harmed in the making of this article. Not even in a galaxy, far, far, away.

And you can thank Ed Milli for the boot, Bluey. That tinker.

Tinkering with contractual agreements. A deal’s a deal. But not for Milli. The UK government who were elected on a mandate of GROWTH. Deal breaking is a terrible way to support deal making. Ah well. Its supporters will be happy and broad shoulders can bear the burden. Will renewables investors nursing heavy capital losses now bear new income losses too? Exactly. It’s true that voters were promised lower bills due to green energy? Short term – that’s what they’ll get.

But it makes UK renewables uninvestable in my opinion, due to Milli’s measures taken to reduce bills:

  1. Milli has removed 75% of the Renewables Obligation
  2. Hiked the Electricity Generator Levy to 55% on revenues above £82/MWh. While oil and gas giants get “investment allowances” to offset their windfall taxes, perversely renewable generators have been hammered with a high headline rate that doesn’t offer the same generous loopholes for reinvestment as fossil fuels.
  3. Milli is “strongly encouraging” legacy renewable generators to move off their lucrative old market-linked contracts and onto fixed-price Contracts for Difference (CfD). It’s being framed as a “voluntary” move to de-link from gas and electricity prices, but the subtext is clear: renewables generators who don’t “volunteer” may face even harsher tax treatment or grid-access deprioritisation. It’s effectively a retrospective raid on the profits of projects built a decade ago.
  4. In an embarrassing admission in April 2026, Ofgem and the government admitted they’ve “over-allocated” grid capacity to battery storage, leading to a regulatory freeze. New rules are being fast-tracked to limit or cancel new battery projects unless they already have revenue support. After telling the industry that storage was the “backbone” of the transition, they are now pulling the rug out from under developers who spent millions on planning and land rights, claiming the system is “overwhelmed.”
  5. Blunders and resets. The newly formed NESO (National Energy System Operator) has been forced to “reset” timelines, effectively telling shovel-ready solar and wind farms to get back in line because the previous administration’s “zombie projects” (projects that exist only on paper) weren’t cleared out properly.
  6. What else does he plan to do too?

Good luck to readers continuing to invest and tempted in this area (I’m sure I’ll get some robust rebuttals on this and some harrumphing) but I’ve decided it’s not for me.

Could the sale of BSIF still yield upside? Yes of course, and it’s got an attractive yield. Or had. Could it be harder to sell the portfolio to a new buyer given Milli’s tinkering? I think so. How can international investors invest into the UK when the rules are akin to those of a Banana Republic. I’m happy to take the 22.9% gain.

Current yield 10.6% so still a hold but maybe time for re-investing the dividends outside of Renewables.