Drax has agreed to acquire renewable infrastructure investor Bluefield Solar Income Fund (BSIF) in a recommended all-cash deal valued at approximately £548m, making it one of the largest acquisitions in the energy group's history.

The takeover will significantly expand Drax's renewable energy portfolio, adding around 0.9GW of operating and under-construction solar and wind assets, alongside a substantial development pipeline exceeding 1GW. Drax said the deal supports its strategy to invest up to £2bn in renewable and flexible energy projects by 2031 while strengthening its contribution to the UK's energy security and decarbonisation goals.

"BSIF could potentially be the biggest acquisition our business has ever made. It represents an attractive opportunity to substantially grow our renewable generation business, while being highly complementary to the Wider Drax Group's existing operations and FlexGen portfolio. This deal can help meet the UK's energy goals of security of supply, affordability and decarbonisation as rising levels of renewable electricity are expected to meet growing national power demand," said Will Gardiner, CEO of Drax.

"The UK's energy system is rapidly evolving and to meet its changing needs Drax is transitioning too. We are excited about the opportunities we have to invest in growing our business and supporting the country's long-term energy security by adding new sources of generation and storage to our portfolio," Gardiner added.

BSIF chair Michael Gibbons also welcomed the proposed transaction, stating that it "represents a highly attractive outcome for BSIF shareholders and a compelling opportunity to crystalise value in cash".

BSIF, which was established in 2013 as the first UK-listed investment company focused on solar energy infrastructure, currently operates and invests in a portfolio of solar, wind and battery storage assets with total operating capacity of more than 850MW. The fund is expected to generate enough renewable electricity this year to power around 326,000 homes.

The market responded positively to the deal, with BSIF shares jumping about 16% on the announcement, from around £0.79 to £0.91.

The acquisition has been unanimously recommended by the BSIF board and is expected to complete during the third quarter of 2026, subject to shareholder and regulatory approvals.

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