Octopus Renewables Infrastructure Trust (ORIT) has signed a conditional agreement to acquire the 55MWp Barnsdale Solar Park in West Yorkshire from OnPath Energy for about £34.6 million, including remaining construction costs, a deal that matters to renewables investors and developers because it shows a listed fund buying a project mid-construction with Contract for Difference revenues already secured. Once operational, the project is forecast to generate electricity equivalent to the annual needs of around 19,000 homes.

Octopus Renewables Infrastructure Trust (ORIT) is a London-listed closed-ended investment company investing in renewable assets across Europe and Australia, targeting a 9% to 11% medium to long-term total return under its ORIT 2030 strategy.

OnPath Energy is a UK land-based renewable energy developer, formerly Banks Renewables, with onshore wind, solar and storage projects.

Goldbeck Solar is an international turnkey solar contractor founded in 2001 that has built 3.5GW of solar plants in 20 countries and previously built ORIT’s Breach solar farm in Cambridgeshire.

Barnsdale holds a fixed price, CPI-linked, government-backed Contract for Difference running to 2041, and the deal is conditional on the site meeting requirements ahead of the CfD commencement deadline, expected to be satisfied in March 2027.

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.”

Energy Voice reported that ORIT is seeking further construction-stage investments to address investor concern over fund underperformance.

ORIT’s chair, Phil Austin, said the acquisition offers an attractive risk-adjusted return and will increase the contracted share of the portfolio, according to Investing.com.

Barnsdale’s contracted revenues are expected to contribute to dividend cover from FY 2027 onwards once the acquisition completes.

OnPath Energy has said proceeds from selling existing assets will advance its renewables pipeline across the UK.

For the sector, developers selling construction-stage assets to listed funds shows capital moving from development risk to contracted income while proceeds fund new pipelines.

Source: Business Sale Report / Energy Voice / Investing.com