NextEnergy Solar Fund (NESF) has reported that its ordinary shareholders’ unaudited net asset value (NAV) for the second quarter of 2021 was £580m, in line with £581m in the first quarter of 2021.
Unaudited NAV for the second quarter, ending 30 June, was 98.7p per ordinary share, while for the first quarter, ending 31 March 2021, it was 98.9p per ordinary share.
Ordinary shareholders’ unaudited gross asset value (GAV) reached £1058m in the second quarter of 2021, while in the first quarter it reached £1025m.
By 30 June NESF had increased its total installed capacity to 893MW, up from 814MW at the end of March 2021, across 99 operating solar assets.
In the second quarter the fund had energised five sites, including South Lowfield (51MW).
Electricity generation 3.8% above budget for the quarter, equating to c.£1.1m in additional revenue for the quarter.
NESF has committed $50m to NextPower 3, a private solar infrastructure fund, adding 28MW to NESF installed capacity on a look-through equivalent basis.
The company said short-term forward UK baseload power prices continue to strengthen and in part were already captured in NESF’s previous NAV due to its successful forward hedging strategy which locked in higher prices as they emerged.
“Our hedging activities demonstrated NESF’s continued ability to deliver consistent NAV performance, whilst removing short-term merchant risk, cash flow volatility and ensuring guaranteed stable future cash flows,” stated NESF.
The latest power price projections of the Company’s consultants indicate that future power price estimates are currently lower than the figures used in March 2021, signalling a slight reduction in the power price consultant estimates from 2027 onwards.
NESF continues to lock in tapered power price hedges over a 36-month period at levels above the three independent market consultant’s predicted levels.
NESF implements this strategy through NextEnergy Capital’s specialist in-house energy sales team with direct access to energy market trading.