Diversified portfolio helps DORE’s NAV grow despite falling UK power prices

Downing acquires 96MWp UK solar PV Seed Assets portfolio

Published: 21 May 2021, 10:33

Image: DORE.

Strong power prices in Europe helped offset falling UK power prices to allow Downing Renewables & Infrastructure Trust plc’s (DORE) Net Asset Value (NAV) to grow 1.3% in the first quarter of 2021.

The company’s NAV rose to £121.6 million, or 99.2 pence per share, up from £119.9 million or 97.9p per share as of December 2020. A little over half of this was due to an increase in the long-term power price forecasts in Sweden, where DORE purchased a hydro asset following raising £122.5 million through IPO on the London Stock Exchange in December.

Following the IPO, the company also acquired a c.96MW operating UK solar asset in March. UK solar generation and power prices were in line with its expectations it said, with a drop in both long term power price forecasts in Q1 and a jump in corporation tax factored into the acquisition and so reflected in the 31 March NAV.  

“DORE has invested 83% of the funds raised at IPO ahead of schedule and has an attractive pipeline of near-and-medium term opportunities,” said Tom Williams, partner and head of energy and infrastructure at Downing LLP.

“This set of results clearly demonstrates the benefits of DORE’s strategy of investing in different technologies in different locations selling power into different electricity markets.”

Falling long term power prices in the UK along with corporation tax rising to 25% for all businesses with profits over £250,000 have impacted the NAV of a number of renewable energy companies over Q1. For example, Foresight Solar Fund pointed to these two aspects as the biggest drivers of its NAV falling 2.3 pence per share in Q1.

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