Downing Renewables & Infrastructure Trust (DORE) has reported a net asset value (NAV) of £217m as at 30 September 2022, an increase of 1.5% from the company’s NAV as at 30 June 2022.
On 23 November 2022, DORE completed an additional accretive acquisition of a 14GWh hydropower portfolio consisting of seven assets in Sweden for a total investment amount of £6m.
The acquisition increases the hydropower portfolio to 26 plants and was funded on an ungeared basis.
DORE reported no impact from UK Electricity Generator Levy and EU Price Cap.
The annual generation forecast for the company’s UK portfolio is below the proposed threshold of 100GWh, falling outside of the scope of the UK government’s proposed electricity generator levy.
DORE’s European portfolio is focussed on Northern Europe which results in exposure to electricity markets with average prices materially lower than those of central and southern Europe and the UK.
The company reiterated its guidance from October that its price forecasts for its European portfolio fall below €180/MWh from 1 January 2023 and so to the extent that the EU price cap is introduced by the Swedish Government at this level (and the plants do not fall within the various exemptions applicable to hydropower installations), this will have “an immaterial impact on the Company’s NAV, if any”.
Operating profit in the wind portfolio was slightly above expectations, supported by strong wind speeds and good levels of availability.
Generation across the hydro portfolio was below budget, mainly driven by low levels of precipitation, though operating profit was c.30% above budget, with high power prices offsetting low levels of generation.