Increased power prices have helped to boost Foresight Solar Fund’s net asset value (NAV) in the first quarter of the 2021-2022 financial year.
NAV at the end of June stood at £596.4m (€698.46m), up from £558.7m at the end of March this year.
Foresight said the upward shift in power price forecasts resulted in a positive impact on NAV of approximately 2.9 pence per share.
It said power prices in the UK have continued to strengthen during the first six months of 2021 due to high commodity prices and following the easement of the Covid-19 social and economic restrictions.
Other relevant NAV movements include the adjustment of actual inflation figures for the first six months of 2021, an independent review of business rate assumptions for UK assets after the end of the ROC subsidy period and a review of the generation forecast for assets presenting historical performance for a minimum period of two years consistently above base case.
Gross asset value, including the company and subsidiaries, as of 30 June was £1057.2m, up from £1023.5m at the end of March.
Electricity generation from the fund’s UK portfolio for the six months to June was 3.4% above budget, driven by strong asset operational performance and irradiation levels above budget.
Foresight added that there has been positive progress across the company’s 146MW Australian portfolio with all projects fully operational.
In Spain, the Virgen del Carmen subsidy-free project currently under construction is expected to be commissioned by the end of September.
In relation to a 98.5MW subsidy-free solar portfolio acquired on 31 December 2020, the investment manager continues to evaluate long-term power purchase agreement (PPA) options with major European energy suppliers.
The company said it reaffirms its intention to finalise the PPA and introduce a project finance facility at portfolio level to partially fund construction milestones during the course of 2021.