Good day, ladies and gentlemen, and welcome to Foresight Solar's interim results presentation. At this time, all participants are in listen-only mode. Later, we will conduct a question and answer session. If you wish to ask a question, we ask that you please use the Raise Hand function at the bottom of your Zoom screen. If you've dialed in, please select star nine to raise your hand and star six to unmute. Instructions will also follow at the time of Q&A. Participants can also submit questions through the webcast page using the Ask a Question button. I'd like to remind all participants that this call is being recorded. Questions will follow after the presentation. I will now hand over to Ross Driver to start the presentation. Good morning, and thank you for the introduction. It's Ross Driver here, managing director at Foresight Group and fund manager for Foresight Solar Fund. Joined today by Toby Virno, associate director and part of the fund team in the infra team, David Goodwin, who's finance director for the fund, and Matheus Fierro, who's our IR lead here in the room. Just pushing forward, we'll go through into the summary of the first half of the year here and appreciating that there are a number of things that have already been released in the NAV update. We'll focus on a few of those and add a bit more context around this in the case of interim results. I think key message for us here is that we continue ourselves and the board to follow through on the capital allocation policy that we've got here. There's three main pillars to that, which is the buybacks, divestments, and future modest capital put into future growth of the fund. We've agreed to increase the buyback program by up to GBP 10 million, up to GBP 50 million now, which is relatively the largest in the sector. We have been buying back, as is noted, on a very regular basis in the market and returning capital to investors there. I think new in this update and update on the divestments is that we can now say we've commenced a process for the divestment of the entire Australian portfolio. We'll talk a little bit more about that going forward and what we've been able to add to that and the timing considerations around it. On the future growth side, I think again, that point, whilst we're looking to pay down debt and make the divestments, refocus the fund as well into sort of U.K. and Europe, we're not losing sight of the need for future growth in there, but it's putting modest amounts into a proprietary development pipeline that we will see coming through to build the future growth of the fund. In terms of portfolio performance for the year, key point of this, it was the wettest first half of the year on record for the fund in the 10 years that we've been operating. I think actually with results showing that revenue itself was only about 6.5% below budget at GBP 74.5 million, given that poor performance that we'll jump into a little bit more on the irradiation side, that actually it shows the resilience of solar. If that's one of our worst periods for input resource that we've had in the 10 years of the fund, it just shows that's probably about as bad as it gets from that side in terms of the irradiation. Only 6% down there on generation and revenue. Hopefully, the Q3 is starting to look a bit brighter in that sense. Distributions from the underlying assets, though, noting that there's a bit of a time lag on these in terms of when we release cash up from the portfolios as we need to pay dividends. We're only about GBP 1.5 million behind budget. Also looking on that, actually our total shareholder return over the last, as we calculate it, over the last 12 months is just over 10% for the fund that we think compares favorably. I think that's also a view of some of the prudent assumptions that we have for the fund and the valuation. We'll just note that point particularly on the U.K. valuation, our price per megawatt of GBP 1.16 million, we do think that that compares prudently towards other data points out there and transactions that we've seen in the market. Looking forward, I think we would continue to say that we're well hedged and covered. The dividend cover for this year, FY 2024, has moderated slightly, which is predominantly down to the lower generation, but it's only moved down to about 1.4 times, so very comfortably covered. Say we are comfortably on target for our dividend for this year. Also we're on current assumptions, we're forecasting a 1.3 times dividend cover for 2025 as well. I think those are the, those are the key highlights looking at. I think just to recap as well on the next slide in terms of that, it is very important for ourselves and the board in terms of the capital allocation strategy and in terms of we are completely aligned in terms of that. I think just a few more data points in terms of this, in terms of what we've done. Share buyback, actually over the last 12 months, there's been GBP 36 million repurchased there, which is why we've expanded it up to GBP 50 now. The average price, we are now getting back to with a bit of hopefully a few macroeconomic tailwinds, we are now getting back above the average purchase price of those shares, which were GBP 0.935. To date, up to the last set of results at June, it's added GBP 0.02 per share of NAV accretion there. On the dividend payments on current share price, we're on about an 8.5% yield. Again, those points of the dividend cover for the next couple of years. I'll come on to this in a bit more detail in the next slide, but we have always stated as you'll have seen, that we have that planned divestment program of circa 200 MW. It's 200 MW plus a little bit now because actually with moving forward with the stated sale of Australia portfolio, it's 170 MW our ownership of solar there, and we've also in-house developed two BESS projects there as well. They're still development stage, but they are up to around 122 MW of BESS on at least a two-hour basis. The debt repayment, we will be looking to make the further divestments to sort of materially pay down the RCF variable rate debt, but there is other options that we've been looking at. I think one of the benefits of having a multi-currency facility is that we've been able to shift about GBP 45 million of sterling into EUR and benefit from the lower rate on Euribor there. That is gonna save us about GBP 350 thousand through to the end of the year. Obviously the final point is around the proprietary pipeline that we continue to build out. Just jumping through in a little bit more detail around Australia, I know it's something that we've talked about for quite a while. There has been a number of reasons why we've waited to now until to announce this really. A key one of them is positioning this portfolio within the market conditions. I think if we went back a couple of years, there wasn't necessarily as much transaction volume going on in the Australian market for operational solar. That's changed, there is now quite a bit of transaction volume taking place. We are working with advisors to navigate through that, advisors that have run similar practices and helping us find the right time to put these assets out to the market. There's also been value enhancements, a number of commercial matters we've had to work through there, as we've previously noted, looking at restructuring the debt. It's all about looking to protect shareholder value in that and going to the market at the right time. I would say this is. If there's a positive to that, it's also allowed us to self-develop these BESS projects pretty much from scratch internally with our local team and enhanced team that we've got now out in Australia. There is currently no value attributed to those really, short sale of the very modest development costs and capital costs that we've assumed in terms of that. A lot of the main cost is in-house work. They are still development stage, but I think it's fair to say that actually most of the portfolio sales being brought to the market in Australia now will include BESS alongside them in terms of to helping to balance the curtailment that we see in the market, and it's also an interesting and attractive development opportunity for new investors to be able to come in and deploy capital into this as well. This, in terms of it, we do believe that our portfolio includes assets with some unique, scarce and attractive features, i.e. the what we call the Solar 150 PPAs on the Queensland assets, Oakey One and Longreach, that have a price of about, a guaranteed price of about AUD 88 per megawatt when generating. That's pretty attractive compared to where the market price is at the moment. Just saying the timing of this, like we've given ourselves through to H1 2025, a bit of leeway on that. I think we'll be looking to kick off, move the process forward to get indicative pricing back before the end of this year. Being realistic that the process will take through to 2025 to manage expectations on that. As discussed with the board, the intention as we stand at the moment, on capital allocation will be to use that to pay down a significant chunk of the RCF when that comes through, but that's based on where things are in the market at the moment. I'll just hand over to Toby to talk through the with, I guess, that, you know, planned exit from the Australian market. There is alongside that a refocus of the fund on the home market here in the U.K. and also our key market in Spain, but also continental Europe. Toby, do you want to Yeah, sure thing. Take that. Thanks, Ross. As Ross says, following the sale of the Australian portfolio, the intention is to refocus the portfolio on the U.K. and European markets. We're laying the foundations for future growth through investment in FSFL's proprietary development pipeline. We've talked in some detail at the most recent capital markets event in May around the development strategy and our targets that we've set ourselves there to build a sustainable development pipeline of between 2 and 3 GW. We're not going to dwell for too long now on the rationale or target returns, we, you know, remind those listening that the materials are available at the capital markets event itself. What we instead wanted to do was to take the opportunity to dive into the outlook for the two core markets for the fund of the U.K. and Spain, where we're at and activity is focused currently. First looking to Spain, it is one of the biggest utility scale solar markets in Europe, and this is set to continue with very ambitious targets for solar capacity by the end of the decade. The revenue model for Spain is underpinned by quite a mature corporate PPA market, and that has facilitated quite high volumes already of unsubsidized solar capacity to be deployed. Foresight Solar has got a successful track record in delivering projects, securing PPAs and securing third-party financing to enhance equity returns. The case study for this is the partial realization of the Lorca portfolio, which is something we are very much seeking to replicate with the little under 1 GW pipeline that we have currently secured rights to within the market. Key to the deployment of further renewables in Spain, both wind and solar, is the deployment of further battery storage and flexible storage technologies. This is due to the very low interconnection, relatively that Spain has with the rest of the continent and internationally. As you know, we have already secured pipelines in each of solar and battery storage, and we are working with our local Madrid office and the development team that are overseeing the structures with our development partners to secure capacity and deliver on these first projects. We also continue to leverage the network of the Madrid office to originate new opportunities, and we'll take advantage of those opportunistically going forwards. Moving now to the U.K., it continues as a market to attract significant volume of development activity. This is due to the broadly stable and supportive regulatory framework that the U.K.'s seen to date. We view reform of the grid connection process as being positive. There's been a lot in the news and the press recently, a lot of coverage of this, and also necessary to meet the targets that the government is setting itself. From an investor's perspective, we see ourselves as being enabling for development partners, as a well-financed party to progress projects and potentially jump the queue over projects that are otherwise stalled, and so have otherwise just, you know, kind of created a bottleneck in capacity and grid connection to the grid. We view CFDs as being critical to support the build-out of new solar capacity, and one of the best things that the new government has done is to immediately come in and increase the allocation for AR6 by 50%. We hope and feel that further increases in the CFD budget and future auction rounds will be critical to meeting deployment targets by the end of the decade. In general, there is a sense of momentum following the change in government, which is really welcome. Ed Miliband has grabbed headlines with early approvals for NSIP projects and ambitions to drive reform centrally through new public institutions. We ourselves are reserving judgment as to how effective Great British Energy and the newly rebranded National Energy System Operator will be in supporting an acceleration in solar until we hear more details of the policy. The focus is really positive, and we think the fact there's more experienced ministers in that area will hopefully provide greater visibility and progress. There's not been much insight yet from the new government on their stance on REMA. There was some discussion pre-election, we're yet to hear anything post. There's been quite substantial lobbying of the new government since they've come to power from all sides. We are not expecting to receive any further formal update from the consultation until the new year. Through speaking with industry bodies and through our own understanding, our expectation is that evolution of existing market mechanisms is the most constructive approach to driving future investment rather than revolution and wholesale reform of the way the market operates. You know, we, with the rest of the market, will await further formal announcements later this year and into next. Yeah. A key priority for the Fund is to target U.K. development-stage solar opportunities, and principally this is with a view to putting projects into the CFD regime, and following the same co-development model as we have been following in Spain. Right. Thanks, Toby. I think just to add to that, in terms of the capital allocation as well, I'll just recap on that point to preempt any questions around this, is we do see the development pipelines as giving us optionality there. I think we will very much see when those projects come through, the first hopefully in 2025 now. In terms of what the state of the market is, our capital allocation policy is, we have the opportunity to flip those rights, to sell them. I think even although we've talked about the first stage of this 200 MW now Australia that we're looking to divest, there'd be nothing stopping us selling down further chunks of other U.K. projects to then recycle into things such as CFD-backed projects. Similarly, we've got optionality in Spain to sell down out of that to actually put into projects. It's not that we realize it isn't gonna be necessarily straight away to be able to raise money again anytime soon, so we're looking at options, various options to bring that through once we've got these opportunities to take forward. Right. I think if we're just jumping on to net asset value here, I don't think. Nothing here is particularly new. Just to recap, I mean, the main downside really throughout the first half of this year has really been down to power price forecasts, project actuals coming through, poor weather and lower and lower generation there. Does feel like we've got to something of a bottom in terms of power prices, and we are, something we'll come to touch on, we are seeing more favorable pricing in the forward markets and what we can tap into going forward for the rest of this decade. I think the key thing really to add in that, on those levers that we can actually pull ourselves, it's not on a NAV basis, 'cause it's bringing the overall NAV down, but on a pence per share basis, the buyback has delivered that sort of GBP 0.02 upside on there. Moving to the next slide, we just wanted to touch on a number of our sort of core assumptions here as well. In terms of we do see our inflation, that's RPI inflation there, CPI being slightly lower than that, actually as remaining quite prudent, for the next period and especially in the long term there. On discount rates, they haven't changed for the U.K. We still believe that is a fair value in terms of where we've seen pricing on other transactions. For Spain, just worth noting, it does look like quite a large drop on paper, but actually it is actually even a reduction from where we were holding our assets at the sale value that we achieved for the Lorca portfolio. Actually, even bringing those valuations down slightly, we have no reason to believe that we wouldn't be able to, if we were to, say, sell the other half of the Lorca portfolio, that we wouldn't be able to achieve the same pricing at the moment. Euribor debt is coming down, so absolutely we think that that is, that reflects a reasonable sale price. In terms of Australia, we would just say that we will continue to look at these. This is probably more of an adjustment between the portfolio and relative values of those assets as we're working with advisors and getting more feedback coming through. There may be some movements around on that as we progress through the rest of the year. I think as we're just trying to firm that up, and we'll be driven by market pricing. In terms of that, I think the other side just goes to the view on the valuation per megawatt. Sorry, you want to talk to performance? Yes. Onto operational performance, and firstly starting with the weather, it will come as a surprise to no one to hear that the first half of the year saw below budget solar irradiance here in the U.K. As Ross touched on at the head of the presentation, what might come as a surprise is the fact that in spite of one of the wettest starts to the year on record, the U.K. portfolio was just 4.3% below budget. This is really testament to both the dependability of solar generation and the kind of high level of confidence that we have in the budgetary forecasts, but also FSFL's proven approach to forecasting and budgeting. For context, we have disclosed here in the presentation and in the results, the historic radiation and production variance. You can see how that has moved since IPO, to give a feel for this as being, you know, one of the poorer resource periods to date, but yet still performing robustly in terms of the natural results. Spanish production was similarly hampered by bad weather, also significantly by the soiling of modules, caused by Saharan dust. The phenomenon known as Calima was particularly strong in the first half of 2024, uncharacteristically so. You know, we see that as being more of a one-off or temporary impact. Whereas production in Australia was impacted yet again by high instances of economic curtailment and also grid outages. In the case of the latter, most notably, outages associated with upgrades in the Victoria network. There's not much else to add on that. If we can move to the next slide. We're going to cover a bit on power price hedging, as a key strength of the portfolio continues to be its contracted revenue position, particularly the remainder of 2024 and into 2025, where we have very high levels of fixed power price sales, on top of the inflation-linked ROC sales, which underpin contract revenues of in excess of 80% in both periods. As we build out our position for 2026 and beyond, we are actively pursuing additional options to enhance the Fund's ability to hedge its power sales exposure. There may be more on that in due course. Whilst we're not offering dividend guidance, we, you know, based on current assumptions, are happy to give a view as to the level of dividend cover to the end of this year and then also out into 2025. It has moderated slightly for this year, down from 1.5 times to 1.4 times owing to below-budget production. Looking out to 2025, dividend cover of 1.3 times its forecast, underpinned by that very strong contracted revenue position, giving us a high degree of visibility and confidence in the ability to generate revenues and cash. Moving on to the next slide, please, we now discuss the gearing position. There is not much of material note in terms of movement since the full year, save for the regular repayments of the fully amortizing long-term debt. Whilst the RCF drawings, which is our one floating rate exposure that we have, has not moved materially since the start of the year. As Ross mentioned earlier, we have taken advantage of the multicurrency nature of the facility, and to have converted a portion of the balance from GBP to EUR. This is taking advantage of the circa 150 basis points spread between SONIA and Euribor, but it also acts as a natural hedge for the Fund's European-denominated, EUR-denominated holdings, and has meant that we've been able to more efficiently manage that hedge position and release collateral. That is all I think we can say on gearing. I'll hand over to Ross to talk about biodiversity now. Yeah, just something a little bit different in here. There's a case study in the interim report as well about Biodiversity Net Gain and also biodiversity credits. You may be aware that the Environment Act in 2021 has actually mandated new infrastructure projects to deliver a minimum of 10% Biodiversity Net Gain. Those that are unable to do so, and you're probably thinking more sort of very urban, sort of real estate developments and things like that where it's difficult to do this, will have to buy credits to compensate, creating a market which is expected to be similar to carbon credits. We've already been working for a few years now with our partner, the Eden Project, to look at biodiversity across our projects because it's well, it's the right thing to do anyway and in keeps with our ethos. There is this potential, and we've already done an exercise to look through some of the higher value projects where we know that there is a lot of Biodiversity Net Gain that we already have, can demonstrate, and that we're rolling this out across the entire portfolio to get an idea of what can be done. There is a lot there in terms of spaces around the solar projects, in terms of the hedgerows, the additional land where we are looking to enhance biodiversity across those projects. I think the key question is what does this mean for investors? There will be a market. Government has put out some guidance around what those biodiversity credits could be worth. I think we sort of take them, they're a sort of government guidance. This will be market and exchange traded. We could be looking at these running into the sort of tens of thousands of GBP per credit. Actually, when you look at the cost and the number of credits and units potentially available from each of these sites, it could start becoming meaningful amount for the likes of ourselves and others. I think it's still got a bit of work to do in that area. The key thing is the market, it will be market driven. It will come out in terms of supply and demand. It generates what the pricing for those credits is. I think what we're flagging at the moment is that we do see significant potential across the portfolio in terms of being able to push this. At that point I'll just sort of bring it back in a summary in terms of this. I think the few new things that we've mentioned here, I think the key takeaways for us are the resilience shown, especially given by far the worst Q1 that we've seen in our U.K. history and a pretty low H1 overall. Good availability during Q2 is really and the active power price hedging has really brought that back. Again, the capital allocation distributions of just under GBP 39 million to shareholders between buybacks and dividend, reducing the costs of the debt by doing other optimization on there, but acknowledging that we will need to press ahead with further divestments to pay that down materially, and also preparing for future growth in terms of that. We're not losing sight of the fact that if we don't continue to at least have the options there in the future, that that will reduce the NAV over time. I think the tailwinds are starting to be interesting, notwithstanding what we may hear in terms of interest rate cuts either later today from the Fed or the Bank of England tomorrow. I can see things still being quite choppy, at least there's tailwinds coming through from there. The power prices appear to have stabilized sort of post the shock of Russia's invasion of Ukraine. We do have a government, as Toby was referring to, a government that seems to be giving strong priority to push forward with renewables, solar in particular, making some good no-noises so far. I think if they put the right framework in place, sort of step out of the way to let the market deliver, we in the U.K. at least, we very much want to be part of that and continuing to build out the solar capacity in this country. That's it from us. Hopefully we haven't taken up too long, we're happy to hand over as much time as possible for questions. First, you want to guide us on that? Shall we start with questions in the room? Hi. Good morning. Nice presentation. It's [inaudible] from Stifel. I've got a couple. Firstly, just on PPAs, can you give us a bit of indication as to what your 2025 levels are? Also, have you been writing new PPAs recently, given the relatively low pricing? The second question's on Spain. Discount rate obviously down, I think cannibalization rates are going up. Yeah. What sort of percentage of the Spanish revenue is locked in through corporate PPAs? Yeah Where this cannibalization isn't? No, fine. No, no, in the notes, wasn't surprised by the questions about it. On the PPA front when we talk about it, we've got different options under that. Where we usually have historically talked about this is actually fixing under our existing PPAs. It's the option to fix pricing. I would say actually we've got already very well hedged in terms of the fixes that we have for this year and next. I think the big question for everybody is going to be when these roll off, it's 2026 and beyond. I think we are looking, we're here to in our noted when at our capital markets event, there are other options we have apart from the going to our standard offtakers. 'Cause I think it's fair to say the key thing to look at, a number of you have noted, is where the futures prices are there. The other issue is we can fix out up to five years ahead with our current offtakers, but it's down to the liquidity as well. If the liquidity there isn't there and the pricing isn't there, we're not gonna fix a lot if it's not gonna offer us that dividend cover. We have different routes, as Toby was alluding to slightly, we have different routes out to market to get improved pricing out of there. If you look at the wholesale pricing and forwards there, they're actually looking quite good. Around that, we're saying that probably around the GBP 60 per megawatt hour level works for us, and we can see routes through to that. I think we'll have to give an update a little bit further in the year 'cause that's something we're working on here to sort of fix out that position from 2026 and beyond. It's something. But it's different from the traditional route to offtakers. In terms of your questions on Spain, yeah, I've noted it in the notes. I think it's fair. In terms of the level of curtailment, we do make a note on here. I think even the forecasts of the revenue providers are assuming around 40%-50% on average. I'd say for our portfolio, and this again will be very specific, we've got the same thing in the U.K. I think it comes down to portfolio and location. For the assets that we have, it hasn't reached that sort of average per year over that point at the moment. It's something we're keeping a close eye on going forwards. I think the key thing out of there, like a number of markets that we'll look at, is coming down to battery storage as well. Spain will need that build-out of battery storage. We would very much like to be part of that as well. Actually that will help alleviate these solar discount pricing there. I think on average, the assumptions that we've got in there are reasonable at the moment, but we'll continue to monitor them based on what we do in the U.K. portfolio, seeing what is coming through from the portfolio, but also what the consultants are seeing, and also their assumptions. The key thing is the assumptions around build-out. I think they're probably closer and more realistic for Spain than they are for the U.K., at least to date, in terms of how much is being put forward. Final point on your, with fixed price PPAs, it's about 70% that is fixed for the next 10 years. A decent one are now decent prices. Prices did shoot up significantly over the last few years, but we're pretty happy with them. They're locked in. They've got another eight years left on those. It also includes the GOs going through that as well. They're fixed as part of that. Okay. Thank you. That's helpful. That's just on the development pipeline. On the Spanish side, what's the quantum of assets by megawatt that's gonna come to sort of ready to build stage next year? On the U.K. side, how would you bring U.K. development pipeline into the fund in practice? Is it something that's sitting in the wider Foresight Group with JV, et cetera? No. Fair, fair point. I mean, I, I won't be drawn on exact MW. I think it would be good to see the first projects coming through in 2025. We got a couple medium-sized solar projects, and the BESS will be driven by where we get to in the, in the markets. Right. I would say, This is a, we are having to build this. We expect it to roll out over several years. It will take time to establish this, and development is that game where things can move back and forth. I think just to add to that, yeah, so the goal as we talk about the capital markets data is to build that sustainable, kind of rolling pipeline, and for that to be an ongoing feature of the fund. We are clearly in that transition and building that pipeline at the moment. Yeah, development is a multi-year game. It would be great if we can have some early successes. Yeah, the principle being that we want to do something sustainable for the fund going forward. That is a rolling pipeline that continues to then predictably churn out ready-to-build assets with summary clarity. Yeah. In terms of the question around U.K. W e've got various options on that. I think one of the key lessons for us here is the reason we're comfortable with this in the U.K. and looking to partner with with developers is Foresight has you right. Foresight does have existing relationships there and JVs. I think in terms of that, though, they are owned by the funds. The key thing for really for us to do those JVs have existed, we have first right over some of those assets. What we, what we knew when we set this up, it is better for the fund to do this work itself and do those partnerships. Otherwise, really to be there. Other funds have different investors, and they have the developer. You'll probably be looking to pay a similar fee to what you would at a ready-to-build asset. We have good track record in working on those. Those have been very successful. There are a number of options around how we could put that in place. It would probably be a similar sort of set up to what we've done there in Spain. I think looking to that two to two and a half, 2 GW to 3 GW a month, it's getting in there, finding the right partner, finding the right projects that will come in over a period of time. Again, adding to that. Oh, Toby, do you want to add anything else to that? There's a number of Yeah. discussions that we've got ongoing. Having worked quite extensively in structuring some of the Foresight's development pipelines in the past and some of the partnerships that the other funds are party to, key focus for us is finding the right parties to get into bed with. You know, it's all about match and team. You know, the strength of their pipeline is clearly a factor in that and their track record. You know, it's about the match of team and their processes. We typically take a relatively defensive position given that we are not a development fund. You know, this is a portion of our capital allocation that's, you know, there to drive pipeline and to kind of boost returns and generate some capital growth as well. We do typically take a slightly more defensive position, and that comes out in the, you know, the overall returns that we get, but then also mitigate some of the downside risks. There's a number of different structures we can achieve that through, whether it's joint ventures, whether it's, you know, owning assets outright or, and having a GSA. Really it's about finding the right partners, and then making sure everyone's aligned to try the best outcome. Thanks. It is useful. Helps. Just picking up on that in terms of finding the right partner and coming back to what you touched on in terms of some of the market reforms that are ongoing, particularly around the group connection queue, and sort of some of the potential reforms in terms of projects that don't have land rights, but maybe going to back of a second queue. How do you see that if kind of those reforms do come in this year, probably actually next year? How does that evolve the market for solar developers? Does it? Does it become more competitive to get access to those projects that actually do have planning permissions, grid connections, and, you know, land rights in place? Are you gonna actually see there's gonna be kind of an opportunity time to try and time your entry with those partnerships with developers? Yeah. No, no, definitely. We are already seeing, you know, enhanced rights for people to be booted out the queue, if they're not progressing with their projects, you know, or already announced and, you know, coming into force. A lot of discussion around that gating of projects and dynamically moving people up and down the queue, depending on how quickly they're progressing. We're already seeing DNOs, you know, as early as November this year, placing requirements on developers to have land options in place, like a three-year land option, before you can apply for grid capacity, and that's a very significant hurdle in terms of money out the door through lawyers, et cetera, compared to what was previously just a, you know, a letter of intent or, you know, a letter of support for the landlord. There's already movements in that direction. For us as funders and investors in the space, we think it's a positive, because we are turning up with capital and the intention to progress these projects. What we can offer developers is a partner who's, you know, got experience of doing this, and can enable them to kind of amplify their pipeline, and give the best opportunity to bring their projects, you know, earlier in the connection queue. There's a lot of projects that are stranded out in the mid-2030s at the moment, but a lot of potential if you come and, you know, show the grid operator that there's a future to those projects to accelerate them to the, you know, start of next decade. I think if you look at the number of the transactions that have been done in this development space, you know, you are looking at those sort of, yeah, projects coming in through from 2030 beyond, and the developers that we're speaking to see a lot of potential to bring those forward. I mean, you're right, I think there's a good time to be having that conversation because hopefully these reforms will be making them come forward as opposed to going back further. It's just quite. I think there's an interesting comparison there between we'll see what those reforms mean and hopefully is starting to push things out of the grid queue that are not moving forward. Interesting comparison there versus Spain, which I think is a good one. You are required to put down grid bonds. That's a, it's about EUR 40,000 euros, at least, EUR 40,000 euros still to be, might even be a bit more in there, to be confirmed in terms of the, in terms of bonds that you need to put down and put your money where your mouth is as a developer. We see that as being really quite beneficial to us because we can bring along that financial firepower even if it's between RCFs or actually surety bonds that we could look to put in place. That helps the developers, and there's a real point to be a partner there with them to bring that sort of financial clout that we can To that position in the queue, which developers themselves are usually quite. Unless they're developers that have now got a big partner behind them, they're usually quite lean operations. It's a people business. They're quite thin on capital. That's where we think there's a, there's a really good tie-up there, which is what we're doing in Spain. I guess just kind of picking up on kind of market reforms, you obviously mentioned you're big fans of the CFD regime, and see that kind of being the structural support going forward. I'm wondering if you've, like, any crystal ball out, whether you sort of have any views on how the CFD regime, whether it needs to evolve kind of going forward. You kind of compare where sort of on pace to kind of fund capacity build that to versus sort of what key trends, scenarios kind of predict we need. Is there scope to maybe move it to sort of twice yearly CFD. Yeah Yeah, yeah. I wonder if you have any views on sort of how that market evolves. I'll give you my views on that and then maybe Toby can jump in as well. I think what was a very quick move by the government to increase the solar pot by over 50% initially was a good move in the first instance. I think it's starting to give clarity. We've seen another good price in terms of which the CFD cleared at, which is clearly supportive out of that. I think to be able to offer a level of consistency, well, twice yearly would be fantastic if we're to factor that in. At least annualized and sort of some consistency for the next few years in terms of that, if there is an ability to continue to increase pot sizes. I think per my personal view is the CFD has been a fantastic success in driving offshore wind in this country, and the other thing that's not mentioned quite regularly is that it's not a subsidy, and the offshore wind projects will have paid back GBP billions to Treasury in the last few years. Obviously, the key thing is where that price is set. If the new government is intent on reaching those 2030 targets, putting the CFD in place there, we think will help achieve that. It's not the be-all and end-all. We think it also has a positive impact on corporate PPA pricing and look, we've maintained options for looking CFDs, corporate PPAs that we know. I think it will make the pricing around that also move to be competitive and also an element of merchant in there. We like a range of options because we do know that things that are driven by government can also sort of sometimes have a change in the weather as well, in terms of that. Toby, anything to add on that? Yeah. The only point to add really is that there's a very ambitious target to triple solar capacity by the end of the decade. That is going to be, you know, very challenging to achieve, and it does take a bit of a shove. We think that the most constructive way to go about that is to, you know, to look at increasing the CFD budget for the future rounds in between now and then, whether or not it means further rounds or just, you know, communicating there'll be budgetary increases, remains to be seen. Looking to the longer term, and REMA, we think that kind of evolving or enhancing the existing CFD framework is probably more appropriate than some of the bigger wholesale changes that, you know, were potentially considered at the outset. We think the CFDs play a really important role. The corporate PPA market in the U.K. is still kind of fledgling. There have been some, you know, some deals done, you know, but the pool of bankable parties is relatively shallow still, people looking at that. The CFD has a really good role to play in terms of, you know, offering that contract revenues to finance these projects. Okay. Charlie. Just on the biodiversity credits. Thank you for bringing those up. What sort of timeline should investors be thinking about? Is it a couple more years of development and then you're keen to see a bit of evolution of volume and then actually right till the end of the decade? I think it will be a couple of years. I think it'll be a couple of years for the market to truly develop there. I think the thing to look at is, look, we're just trying to flag this as potential at the moment. I wouldn't hang too much on the numbers. If you look at the numbers for credits that are actually put out by government themselves, we can always sort of point you in the direction of that. You have some quite, what look like some very high numbers in there, depending on its hedgerows or even high for ponds on there. Yeah. In terms of improving that biodiversity, I think we'll take a more conservative view of that. The most important thing to say is we do think there is something here, especially with the level of development, and what we do see is a good opportunity to be doing this. It's something that we were looking to do anyway across the portfolio or for an ESG and a sustainability point of view. Being able to link those two up, do the right thing, make sure that our projects are meeting their biodiversity potential there, if there is something that can come out of this over the next few years. I think it will be an evolution over a few years, Charlie. How long do you think it'll take before you've done your baseline measurement and worked out your potential-? I think we can be there on that. I think we can be there on that for next year. Yeah. It's worth noting that Foresight was already kind of leading the field in this sense, through our Nature Recovery Blueprint as working with the Eden Project and Natural England, to drive exactly these types of initiatives. I think we are very much on the front foot when it comes to this. Okay. Okay. Operator, can I please move to the Zoom questions? We will now start the Q&A. If you wish to ask a question, please use the raise hand function at the bottom of your Zoom screen. As a reminder, participants can also submit questions through the webcast page using the Ask a Question button. We will pause for a moment to allow the queue to form. We will take our first question from Marcus Jaffe at Peel Hunt. Please unmute your line and ask your question. Hi. Morning, guys. Thanks for the presentation. A few questions from me. Do you disclose the Australian portfolio equity value? I just couldn't seem to find it. I'm not sure if I've missed it. Secondly, where can you see construction and development exposure getting to as a percentage of the portfolio with the kind of refreshed strategy? Finally, could you just comment on, you mentioned the optionality around potentially selling development rights in the future. How long do you think that could typically take? Thank you. Sure. Okay. I guess, firstly on that, no, we don't actually include a breakdown on the equity or NAV per jurisdiction on that. We just say and we're not putting out a specific number on the Australian portfolio at the moment. We'll continue to tweak the discount rates and give further guidance on that as it becomes clearer, I think, in terms of the NAV. All I'd say is we're comfortable at the moment with where the NAV is on that given the information that we have. There is information there on sort of historic values and things such as that. I think all I'd say at the moment, not being drawn too much on that because the process is a little bit out of our control and dependent on market circumstances, probably much more than it is for the U.K., 'cause I think it's very more project specific in Australia. I think what we're saying is that we do expect proceeds from that to be able to pay off a good chunk of the RCF once that is realized. In terms of the construction and development exposure, and it's a fair point because we can, we can always look for to provide some further disclosure on this. The construction risk outstanding is now absolutely de minimis. We are now down to GBP 2 million on the Sandridge BESS project in the U.K. that is effectively now built. We are just waiting for the grid to connect, that will probably be Q1 next year. There are final payments for that, a couple of GBP million on that. Really, in terms of We can help to sort of guide you, we have put out previously, I think, some disclosure around what we, what we would be in for on the development pipelines. Off the top of my head, what we're saying with the Celliant BESS portfolio is really in our base case there, it's about up EUR 2 million through to the end of 2026 in terms of the development monies attributable to that. There would obviously be beyond that, there would be further larger payments at the point that those projects get consented, but we see the trade-off really is you're putting very minimal amounts at risk. Once those success payments are payable through to the developer, you've also got an asset that is worth value, and that asset will be worth several times what we'll have paid them in development fees. It's a similar, if I remember, it's a similar amount for the Quair development pipeline with where we see that going currently. We'll check back on that one as well to give you, see from what we've disclosed so far in terms of what we, what we think on that. We'll look to give some further disclosure around that going forward. I think just stepping back, at a high level and kind of future aspiration for development, we've got a cap in our investment policy of 5% of GAV for development. That sort of capital would go an awfully long way in terms of development where, you know, the investment requirements are much lower than, you know, building out projects clearly. I guess what we would say, and I think what we've emphasized before, is that we don't really anticipate getting up to the, you know, the extent of that limit in order to reach our initial targeted pipeline. On that, I mean, we are still single-digit million EUR through to the next couple of years on that, it's fair to say. The optionality around it, I mean, through and if you go back to slide, where is it? Slide eight, in terms of looking at this, it will be very much driven by when these projects roll out and become available. Say, if we were to get one of the first projects to come through would be a solar project in Spain. I think the big question for us in current market conditions, if that was to come out in the next, say, 12 months, is, you know, how would we fund that? How would we take that forward? Which we would very much like to do to continue to expand the portfolio out there. If it made sense, we know that there's a very active market out there, and we could sell those project rights for several times what we've already agreed. We own 100% of the rights, instant potential upside to sell that off to another party. What we could also look to do is, depending on where market conditions are at the moment, is also bring in a partner. I mean, we've sold, we've shown through the sell down of the portfolio there that there are sort of willing European participants that are looking for operational projects. We've still got some flexibility with the balance of the portfolio there. We could consider selling down some more of the assets. We also have partners that would be willing to maybe co-invest with us to take some of those projects forward. I think it's looking at the options. Really, I think if you're looking sort of into next year, again, that discussion from ourselves and the board will take place given where things stand and on a capital allocation decision, whether it still makes sense to be paying down debt, still makes sense to be doing buybacks versus, I think, just to round that off, we'd be saying we'd be looking at the returns that we think we could make out of that and what is the best route for capital, whether it's to sell or whether it's to build out on a hold to maturity basis. Hope that helps, Marcuz. Yeah, really good. Thank you. As a reminder, if you wish to ask a question, please use the raise hand function at the bottom of your Zoom screen. Our next question is from Conor Finn at Barclays. Please unmute your line and ask your question. Morning, all. Quick question on the valuation of the Australian assets. Just want to get a sense of, you know, what gives you confidence on current generation assumptions given the poor track record there to date. Fair question on that, Conor. I think it really all comes down to curtailment in the Australian market, and you've got market-driven curtailment and technical curtailment there. I think in terms of that, I think it's fair to say that we have, since setting up a portfolio, we have gone through quite a bit of pain on that versus original assumptions, so curtailment has been higher in the markets. There are a number of things coming through. Our assumptions at the moment for what curtailment will be in those for those projects is in line with what we're currently experiencing in terms of that. As we're speaking to advisors out there, investors and others in the Australian market have got a lot more comfortable with curtailment over the last couple of years. I think that's part that feeds into us looking to waiting until now to look to divest the portfolio. I think that is reflected in the number of deals and transactions that are now going on. You need to have some sensible assumptions in there that are grounded in what has happened to date. That would be the way that we're looking to divest of that portfolio. I think the other thing is actually there are some positive movements in the Australian market for new investors to come through to take these projects forward, I would say, into Australia's ambitions for decarbonization. One of the key things that there is the changes that need to be made to the grid that will be coming through later this decade, and also the ramp down of coal that has added so much base load into the system that has added to those negative pricing events. Those things are moving forward, I'd say, not necessarily within the timeline of our investment in those assets, but there is an attractive future case for the Australian market there. Have you anything to add on? No, I don't think anything else to add on that one. No. No. It comes down to the assumptions that we've got. Conor, hope that helps. Yes. Thank you. There are no further questions on the webinar. I will now hand over to Ross Driver for closing remarks. Well, thank you. Thank you, and those here in the room and online this morning. I think there were probably a couple of new things and a few more insights into what's going on at the moment. We do feel that, hopefully, things could be, if we are experiencing some rate cuts and a bit of a softening in the macroeconomic environment, that can only be helpful for the sector. We're not relying on that on its own. There's a number of initiatives that we're doing there, particularly looking at shareholder and investor value. All I'll say is there is more to come from that in terms of initiatives that we're looking at, and we can hopefully update you on later in this year and early next. Thanks very much. Thank you for joining today's call. We are no longer live. Have a nice day