Power rates improve Foresight Solar asset value

• Fund sees a positive effect on NAV of roughly 2.9 cent per share in first quarter of 2021-2022 FY

Enhanced power prices have aided to improve Foresight Solar Fund's net asset value (NAV) in the initial quarter of the 2021-2022 fiscal year.

NAV at the end of June stood at ₤ 596.4 m (EUR698.46 m), up from ₤ 558.7 m at the end of March this year.

Foresight claimed the upward shift in power rate projections caused a favorable effect on NAV of approximately 2.9 pence per share.

It said power prices in the UK have actually continued to enhance during the initial 6 months of 2021 because of high product rates and also complying with the easement of the Covid-19 social and financial limitations.

Various other pertinent NAV motions include the adjustment of real inflation numbers for the very first 6 months of 2021, an independent evaluation of service rate assumptions for UK assets after completion of the ROC subsidy period and also an evaluation of the generation projection for assets offering historical performance for a minimum duration of two years constantly over base case.

Gross asset value, including the company and also subsidiaries, since 30 June was ₤ 1057.2 m, up from ₤ 1023.5 m at the end of March.

Electrical power generation from the fund's UK portfolio for the six months to June was 3.4% above budget, driven by solid asset operational efficiency and irradiation degrees above budget.

Foresight included that there has actually declared development throughout the company's 146MW Australian portfolio with all projects completely operational.

In Spain, the Virgen del Carmen subsidy-free project presently under construction is expected to be commissioned by the end of September.

In relation to a 98.5 MW subsidy-free solar portfolio gotten on 31 December 2020, the investment supervisor remains to review long-term power purchase agreement (PPA) alternatives with significant European power vendors.

The company said it reaffirms its objective to finalise the PPA as well as introduce a project finance facility at portfolio degree to partially fund construction turning points during the program of 2021.