NextEnergy Solar Fund Limited Response to DECC Solar PV Strategy Announcement
May 19 2014 - 2:50AM
RNS Non-Regulatory
TIDMNESF
NextEnergy Solar Fund Limited
19 May 2014
19 May 2014
NextEnergy Solar Fund ("NESF")
Response to DECC Solar PV Strategy Announcement
Further to the DECC consultation announcement last week in
connection with the development of solar PV infrastructure in the
UK, the Company and its Investment Adviser have given consideration
to its content.
The proposed changes to the regulatory regime have been widely
expected and NESF's Investment Adviser has been building up its
capabilities to act under Contracts for Difference - Feed in
Tariffs ("CfDFit").
In addition, NESF will be fully invested well before any changes
take place and, in the medium term, the solar PV industry will
benefit from the greater efficiency required by reducing costs
associated with the ROC banding going forward.
Specifically, the scale of growth and the efficiencies that can
be delivered through transparent and well devised regulatory change
create an opportunity for greater consumer benefit and allow the
government to maintain control over the deployment of renewable
energy in the UK. The proposed changes announced by the government
have been well publicised and commented on but essentially relate
to the fact that:
- there has been a far greater investment in large scale solar
photovoltaic than originally expected; and
- the UK government is seeking to take greater control of market
demand by bringing forward the regulatory shift from the RO
(Renewable Obligations) regime to CfDFit for larger projects and to
reinforce their support for distributed roof top based systems that
have lower local community and energy grid impact.
These potential changes do not, however, alter the UK
government's target for installed solar capacity of in excess of
10GW by 2020, the market growth opportunity for UK solar and the
requirement for significant further investment. Furthermore, the
Company believes that its outlook, target returns and growth
prospects remain unchanged by the proposals which may, indeed,
present certain opportunities:
- the Company remains firmly on track to have fully invested the
IPO proceeds within previously disclosed timescales, significantly
ahead of the date planned for implementation of any changes in
April 2015;
- the Company has access to a significant further pipeline of
projects and, in addition, the effects of the consultation has the
potential to accelerate the growth in the Company's asset base in
the short term as projects are brought forward in order to secure
commissioning under the current regulation; and
- the NEC Group has experience of operating in solar markets
where there has been significant regulatory change, and is well
placed to manage change in the UK to the Company's benefit, in
particular as it:
o is experienced in reducing investment cost and delivering
operational excellence (both on revenue maximisation and cost
minimisation), something which will be a key driver of returns
under the new regime;
o has significant experience at building, managing and operating
roof top based systems; and
o is building significant partnerships and capabilities to
manage the CfDFiT process.
The Company will keep investors updated on further developments
as they arise.
NextEnergy Capital Limited 020 3239 9054
Michael Bonte-Friedheim
Aldo Beolchini
Cantor Fitzgerald Europe 020 7894 7667
Sue Inglis
Gareth Price
Shore Capital 020 7408 4090
Bidhi Bhoma
Anita Ghanekar
MHP Communications 020 3128 8100
Rupert Trefgarne
Jamie Ricketts
This information is provided by RNS
The company news service from the London Stock Exchange
END
NRADMGMKNLRGDZG
Nextenergy Solar (LSE:NESF)
Historical Stock Chart
From Jun 2024 to Jul 2024
Nextenergy Solar (LSE:NESF)
Historical Stock Chart
From Jul 2023 to Jul 2024