Company Announcements

Bluefield Solar Income Fund Limited
('Bluefield Solar' or the 'Company')

 Interim Report and Unaudited Condensed Interim Financial Statements

for the six months ended 31 December 2025

Bluefield Solar (LON:BSIF), the London listed income fund focused on acquiring and managing renewable energy and storage assets predominantly in the UK, is pleased to announce its Interim Report for the six months ended 31 December 2025.

The Company's Interim Report and Unaudited Condensed Interim Financial Statements for the period ended 31 December 2025 is now available on the Reports & Publications section of the Company's website (https://bluefieldsif.com/investors/reports-and-publications/)

The Interim Report has been submitted to the National Storage Mechanism and will shortly be available for inspection at https://data.fca.org.uk/#/nsm/nationalstoragemechanism 

As at 31 December 2025 / 30 June 2025

1. Underlying earnings is an alternative performance measure employed by the Company to provide   insight to the Shareholders by linking the underlying financial performance of the operational projects to the dividends declared and paid by the Company. Further detail is provided in the Report of the Investment Adviser.

2.  Total Shareholder Return is based on share price movement and dividends paid in the Period. It is defined in the Alternative Performance Measure appendix.

3. Total Return is based on the NAV movement and dividends paid in the Period.  It is defined in the Alternative Performance Measure appendix.

4. Estimated annual figures based on actual and forecasted generation data for the Period 1 July 2025 - 30 June 2026.

5. Based on Ofgem's Typical Domestic Consumption Values (TDCV)

6. Figure based on generation data aligned with the relevant Government CO2e conversion factor. Avoided emissions are disclosed on a gross basis, reflecting the Company's equity share in investments, without allocating avoided emissions to debt finance providers.

7. 1.3GW BESS is subject to additional detail from the grid reform process

Results Summary:

1.  Underlying earnings is an alternative performance measure employed by the Company to provide insight to the Shareholders by linking the underlying financial performance of the operational projects to the dividends declared and paid by the Company. It is defined in the Alternative Performance Measure Appendix in the Interim Report.

2.  Underlying EPS is calculated using underlying earnings available for distribution divided by the weighted average number of shares in issue through the Period.

3.  Underlying EPS brought forward is calculated using the weighted average number of shares in issue through the Period.

4.  Total Return is based on NAV per share movement and dividends paid in the Period.

5.  Total Shareholder Return is based on share price movement and dividends paid in the Period.

6. Total Shareholder Return since inception is based on share price movement and dividends paid since the IPO.

Commenting on the Interim results, Michael Gibbons, Chair of Bluefield Solar, said: "We present in these results another period of good operational performance by Bluefield Solar despite the reduction in the Company's NAV.

We are pleased to have seen good interest from parties wishing to participate in the Formal Sale Process and have now narrowed this list of potential bidders down to a targeted number with more focused due diligence progressing with this group. As such, the Formal Sale Process continues to progress in line with expectations, and the Board will provide further updates when appropriate."

James Armstrong, Founder and Managing Partner of Bluefield Partners LLP, said: "Bluefield Solar continues to deliver on the primary objective launched at its IPO in July 2013, namely the payment of a market leading dividend from the production of electricity from solar PV in the UK. However, the wider capital market environment has changed materially and with it, a material shift in the growth prospects of the publicly listed yield focused renewable generators.

This said, our successful partnership with GLIL demonstrates the robust nature of the Bluefield Group/Bluefield Solar model, one made possible by harnessing the Bluefield Group's highly unique 140 person-strong, end-to-end platform, and the Company's operational assets and development pipeline to create innovative value-enhancing solutions for its shareholders."

Analyst presentation

A remote call for analysts will be hosted by James Armstrong and Neil Wood of Bluefield Partners LLP at 09:30am today, 3 March 2026. Michael Gibbons will also be present on the call.  For details, please contact Burson Buchanan on BSIF@buchanan.uk.com.

A copy of the presentation is available via the Company's website and an audio webcast of the presentation will also be made available at 09:30am today.

https://bluefieldsif.com/

About Bluefield Solar

Bluefield Solar is a London listed income fund focused primarily on acquiring and managing solar energy assets.  Not less than 75% of the Company's gross assets will be invested into UK solar assets.  The Company can also invest up to 25% of its gross assets into other technologies, such as wind and storage. Bluefield Solar owns and operates a UK portfolio of 850MW, comprising 792MW of solar and 58MW of onshore wind.

Further information can be viewed at https://bluefieldsif.com/

About Bluefield Partners

Bluefield Partners LLP was established in 2009 and is an investment adviser to companies and funds investing in renewable energy infrastructure.  It has a proven record in the selection, acquisition and supervision of large-scale energy assets in the UK and Europe.  The team has been involved in over £6.3 billion renewable funds and/or transactions in both the UK and Europe, including over £1.9 billion in the UK since December 2011.

Bluefield Partners LLP has led the acquisitions of, and currently advises on, over 100 UK based solar photovoltaic assets that are agriculturally, commercially or industrially situated.  Based in its London office, it is supported by a dedicated and experienced team of investment, legal and portfolio executives.  Bluefield Partners LLP was appointed Investment Adviser to Bluefield Solar in June 2013.

Extracts from the Interim Report and Unaudited Condensed Interim Financial Statements

Chair's Statement

Introduction

It gives me pleasure to present my first statement as Chair to accompany your Company's interim financial report and accounts for the six months ended 31 December 2025 (the 'Period').  However, the issues discussed in my predecessor's reports of 21 October and 27 February 2025, particularly the persistent discount of the Company's share price to NAV, and the consequent difficulty in accessing capital for growth, continue to challenge your Company.  At times during the six-month period the Company's share price had fallen to below 70 pence, a discount to NAV of roughly 40%, no doubt negatively impacted by the UK government's consultation on the future indexation of ROCs and FiTs.  This was frustrating for the Board, particularly at a time when the attraction of relatively inexpensive, clean solar power was being confirmed on a regular basis - and the dividend yield on BSIF shares was c.13%.

Solar power investment in the UK market is growing strongly, notwithstanding the challenges for infrastructure funds, and has committed support from the UK government, and worldwide. As recently confirmed, solar generates electricity at a far lower cost, including after having made allowance for its diurnality, than new nuclear investment, as recent updates from the constructor have confirmed, and can of course be installed far quicker.  The contribution of solar power to early reductions in carbon emissions while keeping consumer prices low is a major benefit to society and the environment.  Moreover, solar power is generated in the UK, avoiding the need for imports, and is located on many sites distributed around the country, adding to security of supply.  For those reasons, the Board has long shared the ambition to lead the way in building renewables in the UK, and it is therefore a source of great regret that the Company has effectively been prevented from raising more capital to do so.  However, we have undertaken new initiatives, e.g. through the strategic partnership with GLIL, and recycling some of our capital, to allow the Company to build out some of its pipeline.  We nevertheless share the vision that, but for the constraints, there is so much unfinished business to be done.

Ultimately, of course, the Board is accountable to its shareholders, and in my many meetings with them in October and November 2025 I received a strong view that many wished to obtain liquidity, and we have accordingly continued to work to that end.

I shall be commenting on the current status of our Strategic Review and Formal Sale Process ('FSP') currently underway, but first I think it is important to emphasise the highlights of another period of good operational performance by the Company (in association with the Bluefield Group) over the six months ending 31 December 2025, despite the unavoidable reduction in the Company NAV over that Period which has been more fully described in this Report.

Highlights of the Period

I would especially draw attention to:

·      the execution of Phase Three of the Company's long-term strategic partnership with GLIL Infrastructure ('GLIL') being the sale of c.250 MW portfolio of solar and BESS assets previously 100% owned by the Company, to Lyceum, a joint venture owned c.25% by the Company, which now comprises 412.1 MW. The Company has used funds from this sale to invest in selected development opportunities. The RNS link is Signing of Phase Three of Strategic Partnership.

·      the Company's purchase of the 40% share of the 249 MW Project Galaxy portfolio which it did not already own from Bluefield Renewable Developments (BRD) making it wholly owned. We regard this investment as likely to add significant value to and contribute to future earnings of the Company.

·      commencement of construction at the Mauxhall Farm battery energy storage project, with a target energisation date of March 2026.

·      the Board declared the first interim dividend for FY 25/26 of 2.25 pps on 26 January 2026 and is fully covered.   

·      whilst underlying earnings and the NAV were lower (due to a decline in revenues per unit of generation, in line with power market movements), both solar and wind generation increased compared to the same period in the prior year.

·      at the end of the Period, the Construction and Development Pipeline had been grown to 2.9 GW.

·      post Period end, the Company announced that c. 660MW of its development pipeline had achieved the important Gate 2, Phase 1 connection status.  Receipt of a Gate 2, Phase 1 offer means that projects have had their connection date confirmed as being between 2026-2030 and so have attained a highly protected status in the queue of projects to be connected to the grid.

Valuation and discount rate

The Directors' valuation of the NAV per share decreased to 107.80 pps as at 31 December 2025.  One of the main contributory factors, as usual, was the payment of the dividend, at a level aligned with the Board's previously stated guidance.

Having discussed for some time the appropriate discount rate to be used in valuation, the Board accepted the recommendation of the Investment Advisor that this was the right time for an upward movement from 8.0% to 8.5% for the reasons set out fully on page 26 in the report of the Investment Adviser. This change causes a reduction in our NAV of c.2.5pps.

This valuation does not take into account the government's decision, announced on 28 January 2026, that it would bring forward CPI indexation of ROCs and FITs to April 2026, which is significantly before such a change had been expected.  That decision post Period end, as we announced on 29 January 2026, will result in an indicative further reduction in the Company's NAV of c.2%, and this will be fully incorporated in the next Directors' valuation.

The Board regrets this unexpected government intervention, which singles out renewable energy generators (e.g. compared to new nuclear) for a significant downward adjustment to a long-standing support mechanism; this policy change does not help investor confidence in the sector which is so crucial to achieve this government's own targets to achieve clean power.

Power prices

The Board has for many years used the same blend of three independent power price forecasts on a consistent basis for its evaluations and forecasting.  At the end of December 2025 there were further reductions in the blended power price curve over the years before 2030, with longer term estimated prices similar to the forecasts in previous quarters.

As current events in the Middle East are illustrating, energy prices can be influenced by a variety of factors.  At the time of writing global gas prices are coming under upward pressure, and in the UK electricity prices still have a significant  linkage to gas pricing.

Inflation and Interest Rates

The UK RPI inflation rate for 2025 was updated to 4.2% as reported, and this resulted in an increase in NAV of 1.78 pps.

As a consequence of the rate of inflation remaining higher than generally anticipated, the Bank of England Base Rate has similarly declined more slowly than had been forecast.

Environmental, Social and Governance ('ESG')

Once again, a great deal of effort has been applied in implementing the regulatory reporting requirements in this field.  Our commitment to investment in renewable generation is estimated to avoid 155,000 tonnes of CO2e and generate enough electricity to power 326,000 UK homes for the year from 1 July 2025 to 30 June 2026. This report also describes our increasing focus on nature and the circular economy.

The Board

At the end of November 2025, the Board said farewell to our long-standing founder NED, and Chair for the last three years, John Scott.  We thank him for his many years of advice and leadership, based on his very comprehensive experience in the investment company sector and elsewhere.  At that juncture we decided not to recruit a further NED, and so to revert to a five person Board. The roles and responsibilities of the NEDs were adjusted accordingly, and I believe that has ensured continued strong leadership in each aspect of Bluefield Solar's Board oversight.

I am firmly of the view that the experience and expertise of the current Board members equip the Company well for managing the challenges ahead, including the ongoing FSP.  For example, a number of the Board have considerable experience in M&A processes and major corporate transactions, and we are in addition very well advised independently by Deutsche Numis and Rothschild and Co.

Finally, I think shareholders should be aware of the major increase in workload since BSIF announced it was exploring strategic initiatives on 27 February 2025, and more recently caused by the ongoing FSP, which have been conducted by the Company for well over a year now. I am advised that we met 81 times in the last 12 months for formally minuted meetings, and there were many others. This is a far greater commitment of time and expertise than is normal or could have been envisaged, and for that reason the Board approved an additional payment to all NEDs (of c.£21,000 per NED), which is within the renumeration cap previously approved by shareholders, in part recognition of so much additional effort, on an interim basis.

Strategic Review and Formal Sale Process

Shareholders will, I hope, realise that what I can say about the current status of the FSP is very limited indeed; I trust they will understand that the Board is sure that this approach is in their interests.

The Board was pleased to see good interest from parties wishing to participate in the FSP announced by the Company on 5 November 2025. The Board has now narrowed this list of potential bidders down to a targeted number and is progressing with more focussed due diligence with this group. The FSP continues to progress in line with expectations, and the Board will provide further updates when appropriate.

There can be no certainty that an offer will be made, nor as to the terms on which any offer will be made.

Michael Gibbons

Chair

2 March 2026

Report of the Investment Adviser

Introduction from the Managing Partner of the Investment Adviser

The Company continues to deliver on the primary objective launched at IPO in July 2013, namely the payment of a fully covered, market leading, dividend from the production of electricity from solar PV in the UK. However, as commented in my recent Introductions, the wider capital market environment has changed materially and with it, a material shift in the growth prospects of the publicly listed yield focused renewable generators.

As such, after the release of the Company's FY 25 annual statements in October 2025, a Strategic Review and Formal Sale Process ('FSP') announcement was promptly made by the Board. The Chair's statement refers to this and so I will focus my update on Bluefield's actions in the past six months and the unique structure created that has underpinned the Company's sector leading position since IPO.

Key actions during the Period:

1.     Strategic Initiative with GLIL: Announced in December 2023, the establishment of a Joint Venture partnership with GLIL, encompassed 3 key phases. The third phase of the sale by BSIF of a 75% interest in a 44MW new build PV asset and ready to build pipeline of 175MW occurred in August 2025. The result created a c412MW operating portfolio across the 3 phases, which combined with a re-financing and refinement of the capital structure, has delivered cash proceeds to BSIF of £119m with the prospect of a further £10m in deferred consideration to be received as the ready to build pipeline begins construction.

2.     Selected sales of development assets and pipeline growth: In the period to December 2025, the IA led the disposal of a 70MW PV/40MW BESS project whilst taking the opportunity to secure co-development rights on two further early-stage opportunities (combined 225MW PV/1.3 GW BESS). In doing so these actions simultaneously created a capital recycling event and increased the Company's gross development pipeline to c.2.9GW.    

3.     Purchase of Minority Stake in Development Pipeline: In October 2025, the Company completed the conditional purchase of the remaining minority interest in 249MW PV portfolio co-developed with Bluefield Renewable Developments, underpinning the Company's commitment to its highly valuable pipeline.

Whilst shareholder outlook for listed renewable investment trusts remains limited, the fact that the Bluefield Group is continuing to effectively execute key strategic initiatives on behalf of the Company highlights a path to a bright future. One made possible by harnessing the combination of the operational asset base of c.851.8MW, the development pipeline of c.2.9GW and the Bluefield Group's highly unique 140 person-strong platform. In essence, a formalisation of what the Company essentially is; an Independent Power Producer (IPP) with the Bluefield Group providing end-to-end services, from development through to longer term operations. Alongside the unique end to end platform, the other core driver behind the Company's success has been the establishment at IPO, by the Bluefield Group, of five core tenets and continually applied since: 

1.     Capital Structure: continued focus on prudent use of leverage and in the near term a gradual reduction in RCF drawings, with long term financings secured at attractive rates on a fixed interest basis (a current average cost of debt of c.4.07% on £418.5m of long-term borrowings).

2.     Power Sales Strategy: striking Power Price Agreements contracts at the short end of the power curve (6-30 months), through competitive tender processes, enabling it to maximise value for shareholders from the most liquid part of the power market.

3.     Active Management: continuing to provide a dedicated workforce of 140 within Bluefield Group, providing an end-to-end service, offering expertise from development through construction to operation and long-term management, all with ESG embedded across each function.

4.     Proprietary Pipeline: constantly applying the DNA of the business around accessing primary opportunities (as highlighted by the 2.9GW solar and storage proprietary pipeline the Investment Adviser has built up exclusively for BSIF) to provide a platform for continued growth or value accretive sales. 

5.     Capital Discipline: Since listing in 2013, a judicious approach to deployment of capital has been paramount as periods of significant investment activity have been combined with periods of restraint. This approach was at the forefront of the structuring of the Strategic Partnership with GLIL.

There is no doubt that continuing to apply the five key tenets above offers a guide to ensuring a sustainable and valuable Company. The simple fact though, is this future is brightest if the focus is moved to growth and the cashflows generated from the operational asset base are used to provide the capital to enable the Company to take advantage of the unique opportunity its development pipeline offers. 

Whilst my previous statements have contained similar messaging to those in this update, this is simply because I remain full of conviction that the foundations built since listing in 2013 alongside the expertise of the Bluefield Group provide the ideal footing for turning the Company from one in slow decline to one able to embrace the changes of the wider macro-economic environment and thrive in the decade to come.

James Armstrong

Managing Partner, Bluefield Partners LLP

1. About Bluefield Partners LLP ('Bluefield')

Bluefield was established in 2009 and is an investment adviser to companies and funds investing in renewable energy infrastructure. Our team has a proven record in the selection, acquisition and supervision of large-scale energy and infrastructure assets in the UK and Europe. The Bluefield team has been involved in over £6.3 billion renewable funds and/or transactions in both the UK and Europe, including over £1.9 billion in the UK since December 2011.                                                     

Bluefield was appointed Investment Adviser to the Company in June 2013. Based in its London office, Bluefield's partners are supported by a dedicated and highly experienced team of investment, operations, finance, legal and portfolio executives. As Investment Adviser, Bluefield takes responsibility for selection, origination and execution of investment opportunities for the Company, having executed over 200 individual SPV acquisitions on behalf of BSIF and European vehicles.

2. Structure

The Company's corporate structure is summarised below:

[image: corporate structure]

3. Portfolio: Acquisitions, Performance and Value Enhancement

Portfolio Overview

As at 31 December 2025, the Company owned an operational solar portfolio of 121 photovoltaic ("PV") plants (consisting of 79 large scale sites, 39 micro sites and 3 roof top sites), 6 wind farms and 109 small scale UK onshore wind turbines, all 100% owned by the Company, with a total capacity of 748.7MW (30 June 2025: 793.2MW). This is referred to as the wholly owned portfolio.

The Company also has a 25% stake in a joint venture portfolio of UK solar assets in partnership with GLIL Infrastructure (GLIL), who own the remaining 75%. During the Period, in August 2025, Phase Three of the strategic partnership with GLIL was signed, being the sale of a c.250 MW portfolio of solar and BESS assets into the joint venture portfolio (Lyceum Solar Ltd), releasing capital back to the Company. Following the signing of Phase Three and energisation of Romsey Extension, the total capacity of the joint venture portfolio is 412.1MW (30 June 2025: 358.5MW).

Therefore, the Company's total portfolio capacity, comprising both the wholly owned portfolio and BSIF's share in the joint venture partnership, was 851.8MW as at 31 December 2025, composed of 793.5MW of solar and 58.3MW of onshore wind.

During the Period, the combined solar and wind portfolio, on the 100% owned assets, generated a  total of 351.2GWh (Prior Period: 319.2GWh), representing a generation yield of 469.0MWh/MW (Prior Period: 455.78MWh/MW).

Investment Approach, Acquisitions, and Divestments

The Company has taken a disciplined approach to the deployment of capital since listing, investing only when there are projects of suitable quality at attractive returns to complement the existing portfolio. In the Period, due to limited capital availability, the Company has focused on utilising funds from the sale of assets to the JV with GLIL and recycling of capital from its development pipeline. The Company has also continued with investment in a select number of construction projects.

[graph images]

Portfolio Performance and Optimisation

Solar PV Performance - Wholly owned portfolio

In the Period, irradiation levels were 3.3% higher than the Company's forecasts and 7.9% higher than the Prior Year, whilst generation at 277.8GWh, was 7.3% lower than forecast. During the Period, generation yield was 402MWh per MW of installed capacity, 10.8% higher than recorded for the same period in the prior year. Several grid outages, including a month-long outage at West Raynham (49.9MW) during the Period, drove Total Generation down.

Table 1. Summary of Solar Portfolio Performance (wholly owned portfolio) for H1 2025/26: 

1.     Portfolio includes Mauxhall and Yelvertoft in generation calculations for H1 2024/25. Mauxhall excluded from 01/07/2025

2.     Periods of irradiation where irradiance exceeds the minimum level required for generation to occur (50W/m²)

3.     Excluding grid outages and significant periods of constraint or curtailment that were outside the Company's control (for example, DNO-led outages and curtailments)

4.     Revenue includes all income associated with the sale of power and all subsidy payments. It excludes liquidated damages, insurance claims amounts, mutualisation rebates, and business rate rebates. ROC recycle revenue is included assuming a 10% recycle rate for both actual and forecast revenue

[graph images]

Total revenue for the Period was £55.0 million, 8.4% lower than forecast. The Average Total Power Price was 1.2% below forecast at £198/MWh, and 9.3% lower per MWh than the prior year, as historically high PPA agreements which commenced from 2022 onwards came to an end.

Solar PV Optimisation & Enhancement Activity

The Investment Adviser continues to take proactive steps to mitigate risks to both the short-term and long-term operational performance of the portfolio. This is achieved through a rolling data-led capital investment programme to address key risks to operational performance.

Large central inverter revamping projects commenced during the Period, with key projects due to be completed before the start of the Summer and high irradiance. These projects are expected to further de-risk the portfolio, improve portfolio performance both short and long-term and reduce ongoing costs.

As at 31 December 2025, 392MW of the PV portfolio (being 61% of the solar PV portfolio) have leases that allow for terms beyond 30 years. Wherever viable, the Investment Adviser remains focused on negotiating extensions for the outstanding portfolio leases.

GLIL Partnership Portfolio

Further to the successful signing of Phase Three of the strategic partnership with GLIL, and the energisation of Romsey Extension, the total UK operational solar portfolio capacity increased to 412.1MW. During the Period, the portfolio's generation was broadly in line with expectations, finishing 0.1% above forecast.

Onshore Wind Performance

As at 31 December 2025, the Company held an operational onshore wind portfolio of 135 installations, comprising 109 small scale turbines (55-250kW) and 26 larger turbines (850kW-2,300kW), with an aggregated capacity of 58.3MW.

During the Period, the wind portfolio generated 73 GWh, 5.8 % below forecast. This was mostly due to several turbine outages resulting in extended downtimes across the portfolio. 

Total revenue during the Period was £13.5 million (Prior Year: £13.3 million), with an average revenue per MWh of £184. Revenues achieved were 16.5% below forecast, with the average revenue per MWh being 11.4% below forecast.

  Table 2. Aggregated Wind Portfolio Performance for H1 2025/26:

Onshore Wind Optimisation & Enhancement Activity

In Northern Ireland, 17 of the 29 small-scale turbines were identified for repowering with replacement EWT 250kW turbines. These increase both efficiency and output, whilst maintaining their respective NIRO accreditation status. 

As at 31 December 2025, 14 turbines have been repowered and returned to operation, with the remaining three turbines having received planning approval for repowering, with a new 25-year term.

General Portfolio

OFGEM Audits

As part of the industry-wide audits of FiT and RO-accredited generating assets, the Asset Manager has been working closely with the regulator on certain assets that have been selected, at random, for audit. All closed OFGEM audits have had relevant enquiries satisfied, with the respective assets' accreditation being maintained.

Health & Safety Activities & Cyber Security

Please refer to the Environmental, Social and Governance report for further information on health & safety activities and cyber security.

3.    Power Purchase Agreements

The Company actively monitors power market conditions, ensuring that contract renewals are spread evenly through any 12-month period, with competitive tender processes on both fixed and floating price options run for PPA renewals in the 3 months prior to the commencement of a new fixing period.

Flexibility within the Company's capital structure enables PPA counterparties to be selected on a competitive basis and not influenced by lenders requiring long-term contracts with particular offtakers. This means the programme of achieving value and diversification from contracting with multiple counterparties is executed for the benefit of Shareholders.

As at 31 December 2025, the average contractual term of PPAs across the portfolio is 29.7 months without adjusting for capacity (Prior Year: c. 26 months). The Company has a price confidence level of c. 76% at December 2025 and c. 51% at 30 June 2026 (on a capacity basis), representing the percentage of the Company's portfolio that already has fixed prices in place and therefore no exposure to power market fluctuations. Looking ahead, the strategy has also secured power fixes, and thus revenue certainty, at levels that are in line with the latest forecasters' expectations.

Table 3. PPA Fixed Power Prices (average for fixes completed vs blended average forecaster prices)

Footnote: data excludes assets which are part of the Strategic Partnership with GLIL; values shown are as at the beginning of the month

The Investment Adviser believes its PPA policy is the best strategy for Shareholders, who are looking for stable revenues and forecastable, sustainable dividends with high visibility of revenues on a rolling multiyear basis.

5. Proprietary Pipeline

Since 2019, the Investment Adviser has been implementing its project development and new build strategy across the solar value chain to ensure that the Company has the option to build its market share amongst UK solar power producers. During this time, the Company has signed co-development agreements to fund new solar sites, as well as selectively funding battery storage developments, which will enable the diversification of the Company's revenues and allow us to monetise the expected increases in volatility of power prices in the future.

This focus on development activities has enabled the Company to identify a significant pipeline of assets which can be built in the period to 2030. As confirmed in the RNS issued to the market on 23 January 2026, BSIF has received Gate 2, Phase 1 offers on c. 660MW of its development pipeline (540MW solar PV and 120MW BESS). This means these projects have had their connection date confirmed as being between 2026-2030 and so have attained a highly protected status in the queue of projects to be connected to the grid. As these projects progress, the Company is working with selected construction contractors to ensure that projects are designed and built to a high specification for long-term performance.

The new build strategy has delivered well on its objectives thus far; the first three developments to enter the construction phase (Yelvertoft, Mauxhall Farm solar and Romsey Extension) have all been connected to the electricity network and the development pipeline now stands at over 1.5GW. Nine sites have achieved CfDs across AR4, AR5 and AR6, representing potentially over 450MW of installed capacity. The Investment Adviser has also submitted several projects for the AR7 auction round and awaits the outcome for these projects.

The following sections provide a more detailed update on both our construction and development programmes.

Construction Programme

As at 31 December 2025, 102MW of solar PV projects had been energised and had passed provisional acceptance tests. Performance will be monitored closely to ensure it is in line with the contracts over the two year warranty period. These projects are Yelvertoft Solar Farm (a 48.4MW solar PV park in Northamptonshire) and Mauxhall Farm Energy Park (a 44.5MW solar PV project in North East Lincolnshire) and Romsey X (a 9.2MW solar PV extension to Romsey solar farm in Hampshire). Mauxhall Farm is planned to be a co-located project and construction of a 25MW battery energy storage scheme is underway.

As at the end of the Period, the Company had a pipeline of future solar assets with a capacity of 694MW and battery storage assets with 510MW capacity that are fully consented and are in pre-construction. The projects have connection dates between 2026 and 2035.

Of these, the Company is actively exploring EPC contracts for seven projects (c. 360MW capacity in total), which have CfDs under AR4, AR5 and AR6. EPC agreements for the Company's new build projects are expected to be fixed price contracts comparable to Yelvertoft and Mauxhall Farm and will require contractors to provide full procurement activity and to supply all materials. The Investment Adviser completes a full assessment of each contractor's procurement and supply chain management processes to ensure compliance with the Company's ESG policies and standards.

Development Programme

The Investment Adviser has been pursuing its development strategy since 2019 to enable the Company to continue to be a key player in the UK renewable energy market. Since this time, a portfolio of over 1GW of solar and 1.5GW of batteries has been funded across 31 development projects. The Company has an investment limit in pre-construction development stage activities, restricted to 5% of gross assets;  currently less than 3% is committed.

Currently, no value is attributed to projects without planning consent. Once developments receive planning consent and move from the development stage to pre-construction, the Investment Adviser believes it is appropriate to reflect this change in the Company's valuation. At this point in their lifecycle, the projects will have received all the necessary planning consents, land rights and valid grid connection offers and so have discernible value beyond the direct costs of development.

The pipeline status and valuation as at the Period-end is summarised in the graphic below. In the six-month period to 31 December 2025, 4 projects received planning consent, with a cumulative capacity of 105MW solar and 120MW battery storage.

Current pipeline status and valuation at 31 December 2025

Pipeline Valuation

[graph images]

Development and Construction Pipeline (2.9GW)

[graph images]

Pipeline Technology - Capacity Split

[graph images]

6. Analysis of underlying earnings

The total generation and revenue earned in the Period by the Company's wholly owned portfolio, split by subsidy regime, is outlined below:

The Company includes ROC recycle assumptions within its long-term forecasts and applies a market based approach on recognition within any current financial year, including prudent estimates within its accounts where there is clear evidence that participants are attaching value to ROC recycle for the year.

The key drivers behind the changes in Underlying Earnings for this Period are the combined effects of lower PPA pricing, lower than expected wind speeds and grid outages.

Underlying Portfolio Earnings

1 Other Revenue includes ROC mutualisation, ROC recycle late payment, insurance proceeds, O&M settlement agreements and rebates received.

2 Includes the Investment Adviser fees and other fees at Company and BR1 level.

3 Excludes one-off transaction costs and the release of up-front fees related to the Company's debt facilities

4 RCF Interest and commitment fees

Note: Due to rounding some totals may not exactly equal the sum of their individual components.

The table below presents the underlying earnings on a per share basis.

* Average number of shares is calculated based on the weighted average shares in the Period.

** Reserves carried forward are based on the shares in issue at the point of Annual Accounts publication being 592m shares for 30 June 2025 and 597m shares for 30 June 2024).

7. NAV and Valuation of the Portfolio

The Investment Adviser is responsible for advising the Board in determining the Directors' Valuation and, when required, carrying out the fair market valuation of the Company's investments.

Valuations are carried out on a quarterly basis at 30 September, 31 December, 31 March and 30 June each year, with the Company committed to conducting independent reviews as and when the Board believes it benefits Shareholders.

As the portfolio comprises only non-market traded investments, the Investment Adviser has adopted valuation guidelines based upon the IPEV Valuation Guidelines published by the BVCA (the British Venture Capital Association). The application of these guidelines is considered consistent with the requirements of compliance with IFRS 9 and IFRS 13.

Following consultation with the Investment Adviser, the Directors' Valuation adopted for the portfolio as at 31 December 2025 was £761.3 million (30 June 2025: £820.3 million).

Discounting Methodology

The Directors' Valuation is based on the discounting of post-tax, projected cash flows of each investment, based on the Company's current capital structure, with the result then benchmarked against comparable market multiples, if relevant. The discount rate applied on the project cash flows is the weighted average discount rate. In addition, the Board continues to adopt the approach under the 'willing buyer/willing seller' methodology, that the valuation of the Company's portfolio be appropriately benchmarked to pricing against comparable portfolio transactions. 

Key factors behind the valuation

There have been several factors that have been considered in the Investment Adviser's recommendation to the Directors' Valuation (and which are quantified in the NAV movement chart on page 28):

(i)    Despite short-term interest rates continuing their decline through 2025, the Directors' portfolio discount rate has been increased to 8.50% (June 2025: 8.00%). The discount rate remains a key area of consideration but with continuing low transaction volumes of operational solar portfolios, UK Gilt yields remaining elevated over the course of the last twelve months, and increased market uncertainty as a result of recent ROC and FiT indexation consultations, the decision has been made to increase the discount rate by 50bps with a view to continuing to monitor the discount rate in future quarters.

(ii)   Renewable Energy Guarantees of Origin have been updated to reflect the latest available forecast and checked against pricing achieved in the latest round of tendering.

(iii)  Inclusion of the latest forecasters' power price curves as at 31 December 2025 has resulted in a reduction in the valuation as there have been decreases in projected electricity prices in the near-term due to revised gas prices driven by additional capacity. Further information regarding power prices is included in section 3 of this report.

(iv)  Updated 2025 to actual RPI inflation in-line with Bloomberg.

By reflecting these core factors in the Directors' Valuation for 31 December 2025, the enterprise value of the operational portfolio is £1,022 million (June 2025: £1,095 million), representing an effective price for the solar component of £1.07m/MW (June 2025: £1.11m/MW). These metrics sit within the pricing range of precedent market transactions, and the 'willing buyer-willing seller' methodology upon which the Directors' Valuation is based.

The assumptions set out in this section remain subject to continuous review by the Investment Adviser and the Board.

Power Prices

As has been the case for some years, a blend of the forecasts^[1] from three leading consultants is used within the latest Directors' Valuation, as shown in the graph below. This is based on the latest forecasts available as at 31 December 2025.

The curves used in the 31 December 2025 Directors' Valuation reflect the following key updates:

1.     Forward electricity prices from 2026 to the 2030 broadly trending lower, driven by pressure on gas prices through increased production capacity;

2.     Beyond the mid-2030s, power prices have remained broadly consistent with the previous two quarters.

Change in blended power price forecast

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NAV Bridge (£m)

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Movements in NAV

The Company's NAV decreased to £638.3m (107.80pps) in December 2025 from 690.1m (116.56pps) in June 2025. The movement in NAV was driven primarily by the following factors:

Power Prices

This is a Combination of power curve impact of -1.48pps and PPA impact of +0.01pps. The power curves available from the Company's three leading independent power forecasters as at 31 December 2025 report electricity prices falling slightly, particularly in the period 2026 to 2030. The decline is attributed to a combination of factors, including downward pressure on gas prices.

REGO Update

REGO prices were updated for the latest annual REGO curve available and contracted REGOs struck with counterparties.

Actual Generation vs Forecast

Solar portfolio generation for the Period was 7.3% below forecast and wind portfolio generation was 5.8% below forecast resulting in the total portfolio revenue of £3.1m below forecast (-0.52pps).

Impact of Grid Outages

This reflects the grid outages and curtailments outside of the Company's control. The impact for the Period being £1.6m of lost revenue (-0.28pps).

Dividends Paid

Total dividends paid in the Period amounted to £26.6m (-4.50pps).

Discount Rate Update

The discount rate has been increased by 50bps from 8% to 8.5% resulting in a decrease in NAV of £14.8m (-2.51pps).

Inflation Update

The RPI inflation for 2025 was updated to 4.2% in line with actual inflation as per Bloomberg resulting in an increase in NAV of £10.5m (+1.78pps).

Other Movements

This movement reflects the change of the calculation date of cash flows from June 2025 to December 2025, along with tax, degradation, debt, and working capital adjustments.

UK ROC and FiT Consultation

On 31 October 2025, the UK's Department for Energy Security and Net Zero published a consultation regarding potential changes to the indexation of Renewable Obligation Certificates ('ROCs') and Feed-in Tariffs ('FiTs').

Post Period end, on 28 January 2026, the UK's Department for Energy Security and Net Zero published a response to the consultation and has confirmed the intention to proceed with what was described as Option 1 for both ROCs and FiTs. This means that there will be a switch from RPI to CPI-based indexation for both ROCs and FiTs in the next annual adjustment scheduled in April 2026, rather than in 2030 as originally planned.

The Company confirms this adjustment will result in an indicative NAV reduction of c. 2% (c. 2 pence per share) as anticipated in Bluefield Solar's announcement responding to the consultation on 7 November 2025.

Reconciliation of Directors' Valuation to Balance sheet

*GAV is the Net Assets, as at 31 December 2025, of £638.3m plus RCF of £134.9m and third party portfolio debt of £418.5m (giving total debt of £553.5m).

Enterprise Valuation sensitivities

Valuation sensitivities are set out in tabular form in Note 7 of the interim financial statements. The following diagram reviews the sensitivity of the EV of the portfolio to the key underlying assumptions within the discounted cash flow valuation.

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8. Financing 

Debt Strategy

Since its IPO, the Company has focused on a simple and defensive approach to debt. This means having debt agreements that have, primarily, fixed interest rates and are amortising. Debt is split into (1) long-term asset-level debt, and (2) a revolving credit facility at fund-level for short-term funding. Debt in the portfolio is generally not subject to stringent lender requirements on PPAs, allowing the Company to take advantage of more competitive PPA pricing.

The Company's weighted average cost of long-term debt at 31 December 2025 is 4.07% (30 June 2025: 3.95%) and is largely locked in via fixed interest rates. Whilst the Company has some index-linked debt, it also has significant levels of RPI linked revenues, leaving the Company a net beneficiary of inflation.

The revolving credit facility, detailed below, is the only short-term floating-rate debt instrument in the portfolio and represents 24% of the total debt balance. 73% of asset-level debt has a fixed interest rate. 26% of the  long-term debt principal is inflation-linked.

Revolving Credit Facility

In May 2025, the Company extended the term of its Revolving Credit Facility (the 'RCF') with RBS International, Santander UK and Lloyds Bank Plc by two years to May 2027, reducing the commitment of the facility from £210 million to £150 million. The RCF also has an uncommitted accordion feature allowing it to be increased by up to a further £30 million.  

The RCF has Green Loan status, which introduces enhanced monitoring and reporting obligations in line with the Company's Green Financing Framework. The margin for the facility is 1.85%, a reduction from the previous margin of 1.90% as a benefit of the Green Loan status.

The RCF balance drawn as at 31 December 2025 is £134.9 million (30 June 2025: £134.9 million).

External Debt

Excluding the Company's RCF, outstanding loans from third-party lenders as at 31 December 2025 totals to £418.5 million, with each loan secured against a portfolio of assets and fully amortising within the life of the respective asset's subsidies.

Note: Index-linked debt treated as fixed for the purposes of this table as proportion fixed represents interest rate risk only.

Due to rounding some totals may not exactly equal the sum of their individual components.

GAV Leverage

The Group's total outstanding debt as at 31 December 2025 was £553.5 million (30 June 2025: £581 million) and its leverage stands at 46.4% of GAV (30 June 2025: 45.7%).

9. Market Developments

UK renewable generation capacity and deployment

Latest Government data showed that UK solar PV capacity stood at c.21GW across c.1.9 million installations. Of this amount, c.7GW (34% of the total solar capacity in the UK) and c.5GW (24%) is accredited under the RO and FiT schemes, respectively, c.9GW (40%) is unaccredited and less than 6% is under the CfD scheme. Each of the onshore and offshore wind installed capacity stands at around 16GW and 17GW, respectively. The UK has over 6GW of operational battery storage capacity, according to data from energy association RenewableUK.

The UK's total renewable generation capacity is projected to continue to grow over the coming years as the Government strives to meet its Clean Power 2030 targets. Deployment is expected to be supported by several policy initiatives, including the CfD scheme and various significant planning and grid reforms already underway.

The Clean Power 2030 Action Plan outlines the Government's roadmap to achieving a clean power system by 2030, based on expert independent advice from the National Energy System Operator. The plan focuses on accelerating the deployment of renewable energy, investing in new innovative flexible technologies and policy and legislation reforms to support the energy transition.

The chart below illustrates the distribution of total installed capacity across different renewable generation technologies at 30 September 2025 compared with a year earlier.

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Secondary market transactions and construction activity

Transactional activity in the UK renewables market remains depressed, despite ambitious decarbonisation targets and increasing preferences by customers for clean energy. Several infrastructure funds have continued to complete capital recycling via asset disposal programmes to demonstrate value and support deleveraging efforts.

Some construction activity has been observed in the UK solar and battery storage area, although this comes against a backdrop of supply chain challenges, elevated development costs and grid connection timing uncertainties. Converting the UK's significant development pipeline into operational solar and storage projects over the next five years will require developers to adopt innovative approaches to overcome challenges surrounding high construction costs, grid connection challenges and limited access to new capital.

With 793.5MW of solar capacity - comprised of wholly owned and BSIF's share in the joint venture partnership - the Company maintains a strong position within the UK solar market, owning c. 4% of the UK's utility-scale solar PV capacity.

10. Regulatory Environment

The regulatory environment is undergoing significant change as the Government seeks to support renewable energy deployment in a co-ordinated way across multiple segments, including planning, network build, connection regimes, locational charges and generation and storage support mechanisms, in order to deliver on its Clean Power 2030 Action Plan. Key themes are outlined below.

Update on Contracts for Differences (CfD)

In July 2025, the Government released its response to the consultation on further reforms to the CfD scheme for AR7 which ran from February - March 2025. Several positive reforms were announced, including CfD contract tenor extension from 15 years to 20 years for solar and other key technologies. This marks a significant positive step forward for the renewables sector. The Government also committed to increasing the length of the target commissioning window for solar new build projects from 3 months to 12 months, providing developers with greater flexibility to adapt to unexpected construction related events and aligning solar with other "Pot 1" technologies.

The Government published the auction results for AR7 - pot 3 (fixed-bottom) and pot 4 (floating) - offshore technologies in January 2026. A total of c. 8.4GW secured contracts across pot 3 (c.8.2GW) and pot 4 (c. 0.2GW) projects. The final budget for pot 3 was c. £1.78 billion which was almost double the original level of £900 million due to new rules permitting the Secretary of State to view anonymised sealed bids for fixed-bottom offshore wind before finalising the auction budget. The auction results for AR7a - pot 1 and 2 technologies - were released in February 2026. A record 4.9GW was awarded to solar photovoltaic technologies at a clear price of £46.82/MWh (in 2012 prices) which was c. 6% lower than the equivalent AR6 clear price of £50.07/MWh. The budget set for pot 1 is £295 million and pot 2 £15 million.

The movement in AR7a administrative strike prices compared with AR6 was mixed across technologies. The ASP for solar (Pot 1) was £54/MWh (in 2012 prices), down from £61/MWh in AR6 (or c. 11%) driven in part by longer tenors and lower cost assumptions, while onshore wind (Pot 1) was up by just c. 3% at £66/MWh driven in part by lower onshore wind load factor assumptions.

The Government's consultation on proposed refinements for AR8 and future rounds closed on 30 January 2026. Several reforms were proposed aiming to support timely delivery of renewable generation capacity, maintain investor confidence and ensure the CfD scheme remains fit for purpose especially as projects increase in capacity and complexity. We welcome opportunities to engage collaboratively with the Government, and we look forward to contributing towards the success and evolution of the CfD scheme.

Renewable Obligation Certificates and Feed-in Tariffs

In October 2025, the Government published a consultation regarding potential changes to the indexation of Renewable Obligation Certificates ('ROCs') and Feed-in Tariffs ('FiTs'). In January 2026, the Government confirmed its intention to proceed with what was described as Option 1 for both ROCs and FiTs. This means that there will be a switch from RPI to CPI-based indexation for both schemes in the next annual adjustment scheduled in April 2026, rather than 2030 as originally planned. Bluefield Solar remains committed to supporting the UK's energy transition and will continue to advocate for policy stability and fair treatment of renewable investments.

Review of Electricity Market Arrangements

The Government is expected to publish its Reformed National Pricing (RNP) Delivery Plan in early 2026, following the publication of the Review of Electricity Market Arrangements ("REMA") Update in July 2025. The Strategic Spatial Energy Plan is expected to play a key part in the RNP and will assess and map the optimal locations, types and quantities of infrastructure required to achieve a cleaner energy system. The Investment Adviser looks forward to continuing collaborative initiatives with Government and supporting its Clean Power 2030 Action Plan.