Boosts in power cost forecasts provide boost for Bluefield, Octopus Renewables

May 6, 2022 11:47 AM ET
  • Bluefield Solar and Octopus Renewables Infrastructure Trust (ORIT) have detailed the continued influence of the high power prices seen across Europe in a lingering fad across the sector.
Boosts in power cost forecasts provide boost for Bluefield, Octopus Renewables
Image: Bluefield Solar

The adoption of power price contours from Bluefield's power forecasters, along with Power Purchase Agreement (PPA) solutions, the acquisition of Good Energy's 47.5 MWp solar and wind portfolio as well as Shaw-Energi's 20MW battery storage space project, in addition to rolling forward its portfolio working capital and also operating presumptions have all increased the company's net asset value (NAV) during Q1.

It climbed from an unaudited NAV of ₤ 610 million on 31 December 2021 to ₤ 630.2 million as at 31 March 2022.

Bluefield introduced plans to restrike 150MWp of agreements-- around 25% of its portfolio-- during H1 2022 earlier this year, with James Armstrong, handling companion at Bluefield Partnets, informing Solar energy Portal at the time that these were to be restruck "at dramatically greater levels than they are currently".

Increases in short-term wholesale power price forecasts, specifically in Sweden, Poland and also Finland, have also increased ORIT's NAV by ₤ 9.8 million to ₤ 587.5 million.

Power costs have actually surged considering that late summer last year, resulting in greater family energy costs and the development of new federal government strategies to make certain energy protection. Foresight Solar Fund lately described how during 2021, the average power rate across its UK portfolio including set price setups raised 83% year-on-year, from ₤ 37.05/ MWh in 2020 to ₤ 67.93/ MWh.

Furthermore today, Insight introduced it had actually tape-recorded revenues considerably over budget during the very first quarter of 2022, with this driven by rising power costs. Like ORIT as well as Bluefield, this also lifted its NAV.

Adhering to the boosts in power costs, ORIT has actually fixed pricing on what it stated is a substantial section of output for the rest of 2022 and also 2023 at its Ljungbyholm, Saunamaa as well as Suolakangas wind farms in Sweden and Finland. As at 31 March 2022, 56% of ORIT's forecast revenue over the 24-month duration to 31 March 2024 is repaired, with this number having enhanced to 61% as at 30 April 2022, omitting the recent effect of the Lincs offshore wind farm procurement.

Bluefield, meanwhile, said it has actually proceeded its technique of taking care of power rate contracts for durations in between 12 and also 36 months with many contracts continuing to be struck for a minimum of 18 months. The business has a rate self-confidence level of 100% to June 2022 and also 82% to June 2023 over its power and subsidy revenue streams.

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