NESF doubles down on PPA strategy as its mounted capacity rises by 10%.

Nov 19, 2021 01:36 PM ET
  • NextEnergy Solar Fund's (NESF) overall set up capability currently stands at 895MW, with the company remaining to focus on long-lasting corporate power acquisition arrangements (PPAs).
NESF doubles down on PPA strategy as its mounted capacity rises by 10%.
Image: NESF

Launching its acting results for the period finished 30 September, NESF highlighted just how the addition of five solar properties has actually enhanced its variety of operating solar possessions to 99, with its installed ability having actually climbed by 10% compared to 31 March.

It likewise stated that it is remaining to combine its leadership placement in the UK long-lasting corporate PPA market. It pointed to the energisation of the 50MW South Lowfield website, which it claimed stands for a "significant turning point" in it method of developing a footing in the lasting, high-credit UK company PPA market. The Camden portfolio, that includes South Lowfield and also the 50MW The Grange, has a 15-year PPA in place covering c. 75% of the electricity to be generated over the following 15 years, with the counterparty being maker abdominal InBev. This portfolio shows NESF's capacity to develop itself as a leader in this subsidy-free space, the firm said.

Its remaining subsidy-free development possessions, the 50MW Hatherden as well as 36MW Whitecross websites have been planned for building during the period, although beginning building and construction of these sites will certainly depend on the supply-chain environment. NESF is targeting a 150MW subsidy-free portfolio, which is set to be full with the energisation of these assets.

Along with the business's subsidy-free strategy, NESF has actually agreed to fund, layout, build, operate and also possess a portfolio of solar assets on sites operated by the Anglian Water Group, with the power created from these possessions to be sold straight to Anglian under a 25-year PPA.

" This arising PPA market can supply lasting, reputable cashflows for the business, whilst sustaining big corporates' power needs through their wish to take in eco-friendly eco-friendly power and also to assist deal with climate change," NESF said.

Throughout the period, its portfolio generated +1.1% over budget, with 539GWh generated, although this is a drop on 2020, when the portfolio created 551GWh; +11.1% over budget. NESF stated that the portfolio would have created c. 2.6% above spending plan, but Distribution Network Driver Outages negatively impacted on portfolio generation.

It described exactly how, as at 30 September 2021, 35 UK properties with a combined ability of 337MW had safeguarded five, 10 or 15 year lease extensions, with NESF continuing to work with prolonging the life of the staying assets. It is targeting a further 5 possessions for the rest of the existing financial year to 31 March 2022.

The duration likewise saw NESF expand into energy storage space through a ₤ 100 million joint venture partnership with Eelpower, with the very first 50MW procurement now authorized and being prepared for building.

The company's revenue gross was ₤ 45.5 million, an increase on ₤ 23.6 million for the exact same duration in 2020. Incomes per normal share were 7.74 p, while money income was ₤ 28.7 million, a decline on the ₤ 32.5 million for 2020.

Of the firm's earnings throughout the period, 59% were stemmed from federal government subsidies, with the typical weighted life of the subsidies being 13.5 years at the end of the duration. The remaining 41% of the company's revenues were stemmed from marketing the electricity produced to counterparties outdoors market.

Kevin Lyon, chairman of NextEnergy Solar Fund, lauded the period as both finacially and operationally successful for the company, with its battery diversification and also dedication of US$ 50 million (₤ 37 million) for its NextPower III fund being key turning points.

" The 2021 acting period has actually placed UK power at the center of minds and also agendas driven by extraordinary high-power prices in the UK, worldwide gas scarcities, and also the current UN climate modification seminar, COP26, highlighting the instant need to switch over to renewable resource sources like solar," he claimed.