01

Sep

‘For the exact same project design in February, it would’ve been £2m cheaper’ says Bouygues. Image: Getty. “For one project, if it was the exact same scheme, supplier prices and everything, had we signed a deal in February 2022, just on the exchange rate alone, it would’ve been £2 million cheaper,” said Patrick Doyle, head of energy business development at Bouygues. This statistic showcases the startling rise in the cost of project development in the UK, amid surging inflation and a weak pound. Because of this, radical price hikes have occurred across the industry with a major impact on supply chains. There is a major opportunity to increase solar’s development amid the energy crisis, but the price to develop could present a stumbing block to these projects. To counteract this, Bouygues has optimised the designed of solar projects in order to achieve a levelised the cost of electricity to prevent these startling increases. This allows contractors to know exactly what they will be paying, Doyle said, speaking the the UK Solar Summit in London this week. “This increase in just 6 months is absolutely crazy,” Doyle said. But despite this, demand for the technology is high with investors clamoring to be part of the sector, due to its key role in net zero, the still relatively low cost of the technology, and its ability to boost domestic energy security amid the current crisis. “Solar is a brilliant, non-brainer technology at the moment for the transition to net zero emissions,” he added.

20

Aug

Foresight Solar Fund has 50 solar assets in the UK, as well as sites in Spain and Australia. Image: Andreas Gücklhorn (unsplash). Power prices are continuing to boost solar asset value, with Foresight Solar Fund reporting its net asset value (NAV) per share, EBITDA and consolidated revenues jumping over the first six months of 2022, but they are unsustainably high currently, the fund said. The company’sNAV increased from £660 million as of 31 December 2021,to £754.9 million as of 30 June 2022. As such, its NAV per share increased 14.4% from 108.2 pence to 123.8 pence. During the same period, its consolidated revenues grew 18% ahead of budget, and EBITDA grew 26% ahead of budget. This growth came predominantly from the continued high power prices seen in Britain, as the market remains particularly volatile due to high gas prices, driven by the Russian invasion of Ukraine and subsequent geopolitical tension. For example, baseload prices for November and December were being traded above £900/MWh during the first week of September on the back of Gazprom stopping flows of gas through its Nord Stream 1 pipeline. “The war in Ukraine has compounded upward pressure on European gas prices that had already started the year at elevated levels due to supply shortages. In the current environment it is difficult to judge when energy prices and inflation will peak, although present levels are unsustainably high and in need of downward correction,” Foresight Solar Fund’s chairman Alexander Ohlsson wrote in a statement alongside the updated financial results. “The Board is pleased with the operational performance of the portfolio during the first half of this year. Strong asset availability has allowed the Company to benefit from particularly high irradiation in the UK, resulting in generation significantly above budget.” Foresight Solar Funds’ UK portfolio – made up of 50 solar assets – performed 8.0% above base case, with irradiance 8.9% above budget. Globally, the company’s portfolio performed 2.8% above base case for H1 2022. The company has continued its active management of power price exposure, and has entered into new fixed priced agreements for UK assets for various periods of up to four years in advance. It noted that this has allowed Foresight to secure more stable and predictable incomes streams for the years ahead, underpinning its dividend cover. As a percentage of total expected revenues, the company’s fixed revenues are now at 82% in 2023, 80% in 2024 and 72% in 2025. Average fixed prices are at £106/MWh in 2022, £115/MWh in 2023, £96/MWh in 2024 and £87/MWh in 2025. “During the first six months of 2022, the Investment Manager focused on securing new fixed price energy sale agreements for periods up to four years ahead,” wrote Ohlsson. “A flexible approach to power price hedging has allowed the Company to secure strong forecast dividend cover for 2022 and provides greater certainty on future revenues for the coming years, underpinned by attractive ...

16

Aug

On Monday 18th July, SolarPower Europe’s Emerging Markets met with the Egyptian New and Renewable Energy Authority to present their .report on solar investment opportunities in the Middle East, and discuss the latest developments for solar in Egypt since the report’s launch last November. With COP27 taking place in Egypt later this year, this meeting provided a timely opportunity to discuss the country’s renewable energy ambitions.  Egypt’s Integrated Sustainable Energy Strategy (ISES) outlines new targets for the country including 55% renewables in the energy mix by 2035 and 61% by 2040. Among these renewable energy targets, Egypt will tap into its massive solar potential with the goal of reaching 45% solar PV capacity by 2040