Australia grid outages weigh down Foresight solar asset performance

Facebook
Twitter
LinkedIn
Reddit
Email
Foresight Solar Fund’s Longreach solar farm in Victoria, Australia (pictured) was connected to the grid in 2018.

Grid outages in Australia dented the performance of UK-based solar asset owner Foresight Solar Fund (FSFL) in the first nine months of the year.

However elevated wholesale power prices in the UK and beyond helped mitigate any drag on the investor’s financial performance, boosting actual cash generated by Foresight’s portfolio of solar assets.

Issuing a Q3 net asset value (NAV) and operational update today, Foresight noted that electricity generation from the company’s portfolio was 3.2% below expectation for the first three quarters of the year, driven primarily by underperformance of the company’s assets in Australia.

Foresight owns 146MW (net peak capacity, with FSFL owning a share of some assets) of grid-connected solar assets in Australia, however grid outages and lower than forecast irradiation in Australia was a drag on performance in the reporting period.

While Australia is not the only market which has experienced issues with its power grid, concerns about curtailment and the regulatory framework surrounding it were cited by solar investors who have withdrawn from the market. PV Tech Power volume 28 covered the issue within a feature article exploring the investment landscape for solar in Australia, which can be read here.

Nevertheless, total revenue in the nine-month period was some 14% ahead of budget as a result of spiking power prices in the UK. High gas prices and tight power margins have contributed towards spiking merchant power prices in the country, with operational generation assets able to capitalise.

Foresight noted that its NAV rose by around £0.061 per share throughout the three months ended 30 September 2021, around £0.007 per share of which was attributable to the fund’s UK solar assets being able to capture the “exceptionally high” power prices during the reporting period.

Furthermore, approximately one-quarter of this uplift – around £0.015 – was attributable to an increase in power price forecasts, with the effects of Europe’s energy crisis set to continue.

4 October 2022
Solar & Storage Finance USA, the only event that connects developers to capital and capital to solar and storage projects, will be back in November 2022.

Read Next

September 26, 2022
Swedish developer Solkompaniet and investment firm Niam have entered into a framework agreement to invest €300 million in utility-scale solar PV in Sweden.
PV Tech Premium
September 23, 2022
Plans for a temporary revenue cap on solar PV assets across the European Union (EU) could dent investor confidence in renewables, experts have warned, amid concerns that individual member states may be able to set lower caps specific to different technologies.
September 22, 2022
Parts of a new US energy permitting bill that aim to accelerate the construction of transmission infrastructure have been welcomed by trade association ACORE.
September 22, 2022
Tech major Amazon has expanded its renewables portfolio globally with 71 new projects with a total capacity of 2.7GW.
September 21, 2022
Under the REPowerEU scenario to install 750GWdc of solar across the European Union by 2030, the bloc will require 1 million solar workers, double the numbers from 2021.
September 21, 2022
A new consortium has been formed in Queensland with a MOU to build a green ammonia corridor between Australia and Korea.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 4, 2022
New York, USA
On-Demand Webinars, Solar Media Events
October 11, 2022
Virtual event
Upcoming Webinars
October 18, 2022
10am (EDT) / 4pm (CEST)