Foresight Solar has reported unaudited net asset value (NAV) of £657m at 30 June 2024, down the figure of £665m on the previous period at 31 March 2024.
Near and long-term power price forecasts for the UK and Spain trended up in the second quarter, leading to a positive impact on NAV, while UK electricity production recovered after the wettest first quarter on record – irradiation was 2.7% below budget and generation was 4.3% lower than forecast in the first half.
In a trading update released with the second quarter NAV results, Foresight Solar stated that improved weather and good availability from April to June in the UK helped the asset owner recover from the wettest first quarter on record.
The better conditions, however, were not enough to completely mitigate the negative impact of the rainy start to the year.
At the end of June, cumulative irradiation for the six months was 2.7% below budget, and production was 4.3% lower than expected in Foresight Solar’s main market due to unplanned network outages and a small number of inverter issues.
Spain and Australia also suffered from poor weather and network outages.
Overall, production for the global portfolio was 7.1% below budget for the first half of the year – a considerable improvement from first quarter, when it was 15.6% behind budget.
Notwithstanding the below-budget start of 2024, Foresight Solar’s active power price hedging strategy ensured another quarter of steady cash flow from operations, with cash distributions only modestly down against budget.
The investment manager continued to forward-fix electricity sales at attractive rates to provide revenue visibility for the medium term.
Overall, the proportion of contracted revenue for the global portfolio now stands at 89% for 2024, 83% for 2025 and 63% for 2026.