Foresight Solar’s net asset value dips in ‘uniquely challenging’ 2020

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on email
One of Foresight Solar’s assets in Spain. Image: Foresight Solar.

Green investment group Foresight Solar’s net asset value took a hit last year, driven by declining power price forecasts in some of its key markets.

Foresight Solar’s net asset value (NAV) reached £582.2 million (US$808.53 million) in the 12 months to 31 December 2020, down from £628 million in 2019. The company said in its annual results announcement that this was largely driven by a fall in long-term UK and Australian power price forecasts  Share value also fell and stood at around £0.96 at the end of 2020, down £0.08 on the previous year’s NAV per share.

Despite power price declines, the company reported “strong operational performance” that was 8.4% above base expectations in its UK portfolio, helped by asset availability and high irradiation. Foresight Group, Foresight Solar’s parent company, recently announced the formation of a joint venture to develop five solar PV plants in England and Wales, with a total generating capacity of close to 700MW.

Foresight Solar currently has 58 solar assets in its portfolio located in the UK, Australia and Spain, with a combined capacity of 994MW, and generated 969,564MWh of electricity last year, it said in a statement. The company made its first foray into the subsidy-free solar market last year when it acquired a 26.1MW project in Spain last September. It then bought another three assets in Andalucia at the start of 2021, with a capacity totalling 98.5MW. Chairman Alex Ohlsson said the array “should deliver stable cash flows at attractive risk-adjusted returns”, and marks an “important step” towards its planned global expansion.

Ohlson said the company will “continue to monitor and evaluate targeted growth opportunities,” and this year it would focus on delivering various optimisation initiatives and a “strong operational performance”.

“In a uniquely challenging environment, 2020 saw the company deliver a strong operational performance in the UK, make good progress on its Australian solar portfolio, reach a significant milestone with its first investments in continental Europe and in unsubsidised solar and again, meet its dividend target for the year,” he said.

Read Next

April 8, 2021
Green hydrogen may become cheaper than natural gas by 2050, falling by 85% over the next 30 years, but declining costs in the solar sector will be crucial for the nascent technology's growth.
April 1, 2021
As the solar industry has matured and sustainable investment has moved up on the global market’s list of priorities, power purchase agreements (PPAs) have become a mutually beneficial arrangement between developers and the corporate world. But SMEs have remained difficult to cater for in comparison to larger, more bankable offtakers or utilities with permanent facilities. Edith Hancock explores how this might be changing.
April 1, 2021
Solar investor NextEnergy Capital has energised two new subsidy-free solar farms in the UK, claiming one of these - a 75MWp asset in south Wales - to be the largest constructed PV plant in the country.
March 30, 2021
Local authorities in New South Wales, Australia, have given French independent power producer Neoen the green light to develop a large scale solar-plus-storage production facility in the region despite receiving 50 complaints from members of the public.
March 29, 2021
Solar developer ReneSola returned to net profit last year despite struggling with declining revenues throughout 2020.
March 25, 2021
A new study in the UK has found that floating solar installations may help to reduce the impact of climate change on rivers and lakes and help preserve water quality, but more research is needed.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
April 20, 2021
Upcoming Webinars
April 28, 2021
4:00 - 4:30 PM CET
Solar Media Events
May 11, 2021