Foresight Solar eyes CFD pipeline to refresh portfolio with young assets

Foresight Solar Fund (LSE:FSFL) fund manager Toby Virno joined Proactive's Stephen Gunnion to discuss the UK government's latest Contracts for Difference allocation round and what it means for renewable energy investors. Virno explained that CFDs are 20-year agreements between renewable generators and the government that provide revenue certainty through fixed strike prices, reducing financing costs and encouraging investment. He said the latest allocation rounds create an attractive pipeline for Foresight Solar, with the company looking to recycle capital from maturing assets and expiring legacy schemes into newer greenfield solar projects with long-term contracted revenues. "This new greenfield CFD project represents a great opportunity for us to rotate our portfolio into newer, younger assets with access to these very attractive, long-term contracted revenue streams," Virno said, pointing to greater revenue visibility and support for the fund's income objective. The interview...