High power prices drive up NextEnergy Solar Fund’s asset value

NextEnergy Solar Fund (NESF) has seen its net asset value continue to surge amid high wholesale power prices, as its trading team takes advantage of its growing portfolio of assets.

The specialist solar and energy storage fund has seen its NAV per share grow by 7.2% as of the end of June 2022, due predominantly to increases in energy costs.

“Today's reported NAV is the highest that NESF has ever released, and it is encouraging to see that NESF's share price has started to strengthen in line with peers,” said Kevin Lyon, chairman of NextEnergy Solar Fund. 

“We believe the current share price continues to offer investors an attractive entry point to a compelling investment opportunity. The team at NextEnergy Capital continue to work hard to deliver NESF's outstanding performance and exciting future growth pipeline.”

Around 50% of NESF revenues come from government-backed subsidies via ROCs and FITs, while the remainder comes from the sale of budgeted power generation into the market. This final segment has seen the most growth, as power prices have continued to be high against the backdrop of continuing macroeconomic and geo-political events. 

The company has a total installed capacity of 865MW including 100 operating solar assets, which have outperformed by +4.5% for the quarter ended 30 June 2022, translating into additional revenues of c.£2 million. It has a number of assets in Spain and Portugal as well. 

Additionally, NESF also has a 6MW co-located battery storage project at its North Norfolk Solar Farm and a 50MW standalone battery storage project in Fife, Scotland, that is currently under construction as part of a 250MW joint venture with Eelpower. 

NESF has capital to pursue the short-term immediate pipeline, including bringing online this secured battery storage project and completing the construction of its post-subsidy solar assets. 

“I am very pleased to be able to report the third consecutive NAV uplift that NESF has released; 12 months ago NESF reported an unaudited NAV per ordinary share of 98.7p, today NESF announced 121.7p, an increase of c.23%,” said Michael Bonte-Friedheim, CEO of NextEnergy Group.

“NESF continues to provide investors with an attractive income return protected against inflation, as well as providing an investment opportunity which makes a real difference in the fight against climate change.”

The fund saw its NAV per ordinary share increase by 8.2p (c.7.2%) with it now sitting at 121.7p.

An increase in ordinary shareholder NAV has also been observed with an increase of £48.7 million to £717.2 million. Out of the total £145 million Revolving Credit Facilities available to the company, £48 million remains undrawn and available for deployment as of the 30 June 2022.

The company has stated it has exclusivity over or owns the project rights for the vast majority of an attractive pipeline of £350 million of domestic and international assets across the solar and battery space.