The Lemon Fool

NextEnergy Solar Fund, the specialist solar and energy storage climate impact fund with a combined installed power capacity of 865MW, is pleased to announce it has acquired the development rights, permits, and initial grid milestones for a 250MW portfolio of high-quality battery storage projects and grid connections. The strategic portfolio named 'Project Lion', located in the East of England, was acquired for a consideration of £32.5m and will increase the current announced standalone battery storage in NESF's joint venture partnership with Eelpower to 300MW.

Once constructed, the project will provide vital grid balancing services whilst harnessing excess electricity generation from wind at low import prices and then exporting electricity at times of low generation and high prices. The project has secured planning permission and grid connection rights.

The project provides a very attractive return profile for the Company's portfolio as battery storage is a highly complementary technology to solar photovoltaics, being uncorrelated and providing further diversification to the Company's portfolio from a technology, revenue and geographic perspective.

The project is a two-hour (500MWh) duration system and is expected to be energised in 2025, targeting an asset life of at least 50 years.

NextEnergy Solar Fund, the specialist solar and energy storage climate impact fund with a combined installed power capacity of 865MW, will announce its Interim Results for the period ended 30 September 2022 on Monday, 21 November 2022.

An analyst presentation will be held at RBC's offices, 100 Bishopsgate, London, EC2N 4AA. To register to attend please contact Camarco on nesf@camarco.co.uk . The Company will also live stream the presentation via webcast for investors.

NextEnergy Solar Fund, the specialist solar and energy storage climate impact fund, with a combined installed power capacity of 865MW, is pleased to announce an interim dividend of 1.88 pence per Ordinary Share for the quarter ended 30 September 2022. The interim dividend of 1.88 pence will be paid on 30 December 2022 to shareholders on the register as at the close of business on 18 November 2022. The ex-dividend date is 17 November 2022.

The Company continues to offer shareholders a Scrip Dividend alternative to this interim dividend as detailed in the Scrip Circular dated 15 July 2022, a copy of which can be viewed and / or downloaded from 'Circulars' in the Investor Relations part of the Company website ( nextenergysolarfund.com ). The Scrip Share reference price will be announced on 24 November 2022, with elections to be made by 2 December 2022.

Financial Highlights

· +9.4p (c.8.3%) increase in Net Asset Value ("NAV") per ordinary share to 122.9p over the six-month period (31 March 2022: 113.5p).

· +£56.2m increase in ordinary shareholders' NAV to £724.7m (31 March 2022: £668.5m).

· Earnings per ordinary share of 13.1p (30 September 2021: 7.74p).

· Total Gearing (including preference shares) of 42% (31 March 2022: 42%).

· Second interim dividend of 1.88p per ordinary share for the quarter ended 30 September 2022 (30 September 2021: 1.79p).

· Estimated cash dividend cover of 1.3x - 1.5x for FY22/23 (31 March 2022: 1.2x).

· Total dividends paid of 3.76p per ordinary share in respect of the six months ended 30 September 2022 (30 September 2021: 3.58p).

· Target dividend of 7.52p per ordinary share for the year ended 31 March 2023 (a year-on-year increase of 5%, above the 4.1% calculated Retail Price Index ("RPI") rise for the 2021 calendar year).

NextEnergy Solar Fund, the specialist solar and energy storage climate impact fund, with a combined installed power capacity of 865MW, is pleased to announce the reference price of a new Ordinary Share under the Scrip Dividend alternative for the interim dividend for the quarter ended 30 September 2022 which has been set at 122.9 pence. This is based upon the prevailing Net Asset Value per Ordinary Share. The final date for receiving elections on the Scrip is 2 December 2022.

NextEnergy Solar Fund, the specialist solar+ fund, with a combined installed power capacity of 865MW, is pleased to announce an interim dividend of 1.88 pence per Ordinary Share for the quarter ended 31 December 2022. The interim dividend of 1.88 pence will be paid on 31 March 2023 to shareholders on the register as at the close of business on 17 February 2023. The ex-dividend date is 16 February 2023.

The Company continues to offer shareholders a Scrip Dividend alternative to this interim dividend as detailed in the Scrip Circular dated 15 July 2022, a copy of which can be viewed and / or downloaded from 'Circulars' in the Investor Relations part of the Company website ( nextenergysolarfund.com ). The Scrip Share reference price will be announced on 24 February 2023, with elections to be made by 3 March 2023.

NextEnergy Solar Fund, the specialist solar+ fund, with a combined installed power capacity of 865MW, is pleased to announce the reference price of a new Ordinary Share under the Scrip Dividend alternative for the interim dividend for the quarter ended 31 December 2022 which has been set at 120.9p. This is based upon the prevailing Net Asset Value per Ordinary Share, which was 120.9p. The final date for receiving elections on the Scrip is 3 March 2023.

The process for electing to receive Scrip Shares or making changes to an existing Scrip Dividend Mandate is detailed in the Scrip Circular dated 15 July 2022.

If you wish to receive this interim dividend in cash on the whole of your holding, and do not have a Scrip Dividend Mandate in place, you do not need to take any further action.

If you already have a Scrip Dividend Mandate in place and you wish to continue to receive Scrip Shares, you do not need to take any further action.

NextEnergy Solar Fund, the specialist solar+ fund, is pleased to announce that Camilla, its first standalone 50MW battery storage project to be energised under its successful joint venture with EelPower, has been selected to provide battery storage capacity in the UK Government's latest Capacity Market Auction.

The Capacity Market contracts successfully secured in the February 2023 T-1 and T-4 auctions run by the Department of Energy Security and Net Zero are expected to earn Camilla £557k over winter 2023 and £576k per annum over 2026 to 2032, adding to Camilla's existing Capacity Market contract for delivery in winter 2025-26 worth £305k. Under these agreements, Camilla will be ready to support the electricity grid during stress events in winter 2023 and for six winters from October 2026. The contracts will provide a stable and complementary foundation for the operation of the asset, albeit representing only a small percentage of the total revenues the asset is expected to generate in the relevant years.

Camilla's success in the Capacity Market Auction exemplifies the importance of deploying energy storage at scale alongside solar and other grid-scale renewable technologies, strengthening the UK's energy security and supporting the transition to a net-zero carbon economy. The Company's growth strategy anticipated this evolution of the market and the Company has well-developed plans to introduce additional energy storage to its portfolio.

NextEnergy Solar Fund, the specialist solar+ fund, is pleased to formally welcome Helen Mahy CBE to the Board of Directors as a non-executive Director. Helen will succeed Kevin Lyon as Chairman of NESF from the next AGM in August 2023.

Helen currently sits as a non-executive Director of SSE plc and Gowling WLG (UK) LLP. Helen has previously served as Group General Counsel and Company Secretary of the National Grid plc, and more recently as Chairman of The Renewables Infrastructure Group having served her full nine-year tenure.

As part of the Company's transparent approach to corporate governance, Helen currently holds 38,586 ordinary shares in NESF, purchased after the Company announced her succession to the Chairman of the Board.

NextEnergy Solar Fund, the specialist solar+ fund, is pleased to announce that its second international solar co-investment named Santarém, a 210MW project in Portugal in which NESF holds a 13% stake, has signed a long-term Power Purchase Agreement ("PPA") with Statkraft, a leading renewable producer in Europe's energy market.

Under this agreement, Statkraft will acquire the electricity production from Santarém, made up of three photovoltaic solar plants currently under construction in Portugal, for eight years. The PPA builds on the existing successful relationship between NextEnergy Capital and Statkraft, following an earlier signed PPA between the two covering Agenor, a 50MW Spanish solar asset and NESF's first co-investment, where the Company took a 25% stake alongside NextPower III ESG.

Santarém and Agenor were the first direct international co-investments made by the Company, sourced alongside its $50m commitment in NextPower III ESG. NextPower III ESG is a $896m private solar fund focused on utility scale solar assets in OECD markets, which provided NESF the opportunity to efficiently and quickly access an established portfolio of operational and in-construction international solar assets. To date, NextPower III ESG has acquired 1.8GW of solar, made up of 149 individual high-quality assets across the USA, India, Chile, Portugal, Spain, Greece, and Poland. Co-investments alongside NextPower III ESG remain attractive to NESF as they are undertaken on a no-fee, no-carry basis.

BullDog wrote:Interesting news from NESF who are selling some assets to pay down debt, buy back shares and reinvest in other renewable energy projects. Shares are at a significant discount to NAV presently so I think the plan makes sense. Link to Citywire article -

https://citywire.com/investment-trust-i ... efea=29529

richfool wrote:

BullDog wrote:Interesting news from NESF who are selling some assets to pay down debt, buy back shares and reinvest in other renewable energy projects. Shares are at a significant discount to NAV presently so I think the plan makes sense. Link to Citywire article -

https://citywire.com/investment-trust-i ... efea=29529

Thanks for that update Bulldog.

I had been looking at NESF only yesterday and had been wondering whether to reduce my holding. The dividend yield of 6.90% was certainly an attraction to hold on. In view of the above, I'll sit tight.

I note TMF's recent article on NESF didn't mention the debt or debt levels:

https://uk.finance.yahoo.com/news/1-fts ... 01923.html

and another (second part):
https://uk.finance.yahoo.com/news/2-for ... 34191.html

BullDog wrote:

richfool wrote:Thanks for that update Bulldog.

I had been looking at NESF only yesterday and had been wondering whether to reduce my holding. The dividend yield of 6.90% was certainly an attraction to hold on. In view of the above, I'll sit tight.

I note TMF's recent article on NESF didn't mention the debt or debt levels:

https://uk.finance.yahoo.com/news/1-fts ... 01923.html

and another (second part):
https://uk.finance.yahoo.com/news/2-for ... 34191.html

It's a recent-ish holding for me. Given the yield I won't be looking to sell unless the price picks up and it moves to a premium to NAV. That's not going to happen until interest rates are lower. Not anytime soon, I think.

NextEnergy Solar Fund, the specialist solar+ fund, announces its unaudited Net Asset Value as at 31 March 2023, and its latest operational update.

Financial Highlights

· 11% dividend target increase to 8.35p per ordinary share for the financial year ending 31 March 2024.

· Forecasted target dividend cover of 1.3x-1.5x for the financial year ending 31 March 2024 based on high visibility of future cash flows.

· Total dividend of 7.52p per ordinary share declared for the financial year ended 31 March 2023.

· Total dividends declared since IPO of £305.8m or 55.72p per share.

· Net Asset Value ("NAV") per ordinary share of 114.3p.

· Ordinary shareholders' NAV of £674.4m.

· Total gearing (including preference shares) of 45%.

Portfolio & Operational Highlights

· Total installed capacity of 865MW.

· 99 operating solar assets.

· Portfolio generation outperformance of +3.8% against budget for twelve months ended 31 March 2023, translating into additional revenues of c.£4.8m.

· Capital Recycling Programme announced on 27 April 2023, aiming to capture significant value from the divestment of a 236MW portfolio of subsidy-free UK solar assets, the proceeds from which will be used to:

o Reduce gearing;

o Invest in future long-term growth opportunities; and

o Buy back shares

NextEnergy Solar Fund, the specialist solar+ fund, is pleased to announce its dividend target for the financial year ending 31 March 2024. The Board of NESF has approved a dividend target of 8.35p per ordinary share, representing an 11% increase from the previous year's dividend of 7.52p per ordinary share.

The Company has declared total dividends since IPO of £305.8m or 55.72p per share. This announcement represents NESF's tenth consecutive dividend target increase, in line with the Company's progressive annual dividend policy. The Company has achieved all of its dividend targets whilst maintaining a covered dividend throughout the nine years since IPO and continues to target a covered dividend beyond the current financial year.

The dividend target is forecasted to be 1.3x-1.5x covered, supported by a high degree of visibility of the Company's revenues. The Company's RPI-linked subsidised revenues represent approximately 50% of total revenues. Remaining revenues are derived from budgeted electricity generation, prices for 88% of which have been fixed through to 31 March 2024 through the Company's active power hedging strategy.

The dividend target increase is not dependent on the completion of the Company's recently announced Capital Recycling Programme and dividend cover forecasts do not assume revenues from, or sale proceeds connected with, the Capital Recycling Programme.

In deciding the target dividend, the Board considers projected future power prices and associated price hedges, inflation in renewable markets, historic and budgeted technical, financial, and operational performance of NESF's portfolio, and the ratio of cash cover to proposed dividend payments.

The Company continues to offer ordinary shareholders a scrip dividend alternative.

Kevin Lyon, Chairman of NESF, commented:

"We are proud to announce NESF's tenth consecutive year of dividend growth with a target dividend of 8.35p per ordinary share for the financial year ending 31 March 2024. This represents an 11% increase from the previous year's dividend of 7.52p per ordinary share, and we are pleased, given the current macroeconomic environment, to offer shareholders an increase to their dividend. This announcement reflects the strong position of the Company, its secured revenue flows, robust operational asset base and attractive growth prospects. It also demonstrates the resilience of NextEnergy Solar Fund, which continues to offer investors an attractive dividend yield through access to a high-quality portfolio of solar and battery storage assets."

funduffer wrote:Good news indeed.

To signal an 11% dividend rise for this financial year shows confidence in the business.

Held NESF for nearly 3 years now. Never regretted it.

I am a big fan of solar energy.

FD