A listed fund managed by Octopus Energy Group has struck a deal to buy a solar farm currently under construction in Yorkshire for £34.6 million.
The Barnsdale Solar Park is being developed by Sunderland-based OnPath Energy.
The 40MW on 87.3 hectares represents “at least” a £25m investment, OnPath said.
Barnsdale is one of two solar energy projects that OnPath is undertaking in Yorkshire, with preparatory work now underway at the Common Farm Solar Park near Dinnington in South Yorkshire. OnPath was formerly called Banks Renewables.
Octopus Renewables Infrastructure Trust (ORIT) has signed a conditional agreement to acquire the solar park, subject to it meeting certain requirements.
Once operational, the solar farm is expected to generate electricity equivalent to the annual needs of approximately 19,000 homes. The project is being delivered by Goldbeck Solar, with whom ORIT has an existing relationship.
Barnsdale was awarded a fixed price, CPI-linked government-backed contract for difference (CfD) running until 2041 under allocation round five (AR5).
ORIT said the acquisition is conditional upon the site meeting the relevant requirements ahead of the CfD commencement deadline, which is expected to be satisfied in March 2027.
ORIT managers said the deal met its strategy which aims to tackle a persistent gap between the value of the fund’s assets and its share price, which the fund’s chairman described as a “source of considerable frustration” in its interim report to end of June 2026. The fund’s portfolio totalled 740 MW across 39 assets in five countries in the period, during which the fund’s shares traded at an average discount of 36.9%.
Managers expect the acquisition of Barnsdale will contribute positively to ORIT’s 9-11% medium- to long-term total return target under its ORIT 2030 strategy. The firm added it “continues to pursue further construction-stage investment opportunities alongside asset sales, as part of its capital recycling programme”.
David Bird and Chris Gaydon, co-fund managers of ORIT, said: “The ORIT 2030 strategy is focused on building long-term shareholder value through disciplined capital allocation. Barnsdale is a good example of this approach. The agreed terms are attractive and the project is expected to deliver a return consistent with the ORIT 2030 targets, while the purchase structure carefully manages the remaining construction and delivery risk.
“Once the acquisition completes, Barnsdale will add further scale to our UK solar portfolio and its contracted revenues are expected to contribute to dividend cover from FY 2027 onwards.
“We are pleased to be investing at this stage of the project, with construction progressing well and Goldbeck Solar, who built ORIT’s Breach solar farm, bringing its strong track record to bear on its delivery. The acquisition also establishes a new relationship with OnPath Energy that may lead to similar opportunities in the future.”
Phil Austin, chair of ORIT, added: “Barnsdale Solar Park offers an attractive risk-adjusted return, supported by fixed price, CPI-linked revenues that will increase the contracted proportion of the portfolio and provide long-term cash flow visibility.
“The acquisition reflects the selective and disciplined approach to capital allocation underpinning ORIT 2030 and demonstrates the type of selective investment opportunity we continue to pursue as part of our capital recycling programme.”
Erikka Askeland is news editor at Energy Voice. She’s spent more than 20 years reporting and editing business news, with the last decade focused on the North Sea and the UK’s energy transition.
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