TIDMUSF TIDMUSFP
RNS Number : 0369X
US Solar Fund PLC
18 December 2023
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18 December 2023
US SOLAR FUND PLC (USF, the "Company")
NEW RENEWABLE ENERGY CERTIFICATE CONTRACTS SIGNED
US Solar Fund plc (LON: USF (USD)/USFP (GBP)) is pleased to
announce that six of USF's Oregon projects have signed new
long-term contracts to sell Renewable Energy Certificates (RECs).
The REC contracts and revised estimates of future REC prices are
expected to result in a NAV increase of approximately $7.6 million
based on the 30 September NAV ($286.3 million) and contribute to
additional operational cash dividend coverage from 2024
onwards.
Renewable Energy Certificates are awarded to generators of
renewable energy and are tradeable financial instruments. The award
of RECs to incentivise renewable power generation in the US has
increased in recent years as states seek to meet their renewable
energy objectives. The new REC contracts will commence in January
2024, following the expiry of existing contracts in December 2023
and will expire in 2031/32. The offtaker is 3Degrees, a leading
global provider of climate solutions who will pay a fixed price per
REC for the duration of the contracts.
The revenues resulting from the new REC contracts exceed the
assumptions made for income from REC's for these assets in the
Company's current NAV, reflecting a trend for increasing REC prices
in Oregon and across the US. The relevant projects are Chiloquin,
Turkey Hill, Merrill, Lakeview, Dairy and Tumbleweed, which
represent in aggregate 79.4MW of generation.
The new REC contracts will be included in USF's NAV as at 31
December 2023 when the Company's Solar Power Assets are next valued
by an independent third-party appraiser [1] . In line with the
strategy of the manager, Amber Infrastructure Investment Advisor
LLC ('Amber'), Amber will continually appraise opportunities for
recontracting RECs, entering into accretive power purchase
agreements and securing new credits or grants attributable to
renewable power generation in the US on behalf of the Company.
Tom O'Shaughnessy, Head of North America at Amber, US Solar
Fund's Manager, said:
"US state-level policies are mandating increasing levels of
renewables output and driving rising renewable power prices,
particularly from operational solar assets. These supportive
long-term trends underpin US Solar Fund's portfolio with favourable
income characteristics and a more stable outlook for the asset
class .
"Those characteristics are evidenced in the higher prices for
the recontracted RECs we have announced today. Our active approach
to capitalise on these trends means we see more opportunities to
create value in the portfolio, and we look forward to keeping
shareholders updated."
For further information, please contact:
US Solar Fund
Meredith Frost (Amber Infrastructure) +44 20 7939 0550
Cavendish Securities Plc
Tunga Chigovanyika
James King
Will Talkington +44 20 7397 8900
Jefferies International Limited
Stuart Klein
Gaudi Le Roux +44 20 7029 8000
KL Communications +44 20 3995 6673
Charles Gorman
Charlotte Francis
Patrick Lodge
About US Solar Fund plc
US Solar Fund plc, established in 2019, listed on the premium
segment of the London Stock Exchange in April 2019. The Company's
investment objective is to provide investors with attractive and
sustainable dividends with an element of capital growth by owning
and operating solar power assets in North America and other OECD
countries in the Americas.
The solar power assets that the Company acquires or constructs
are expected to have an asset life of at least 30 years and
generate stable and uncorrelated cashflows by selling electricity
to creditworthy offtakers under long-term power purchase agreements
(or PPAs). The Company's portfolio currently consists of 41
operational solar projects with a total capacity of 443MW (DC) ,
all located in the United States.
Further information on the Company can be found on its website
at http://www.ussolarfund.co.uk .
About Amber Infrastructure Group
Amber Infrastructure is an international infrastructure
specialist, focused on investment origination, development, asset
management and in Europe, fund management. Amber's core business
focuses on infrastructure assets across the public, transport,
energy, digital and demographic infrastructure sectors that support
the lives of people, homes and businesses internationally.
Among other funds, Amber Infrastructure advises International
Public Partnerships, a FTSE 250-listed company with a market cap of
approximately GBP2.5 billion and 15-year track record of long-term
investment in infrastructure assets globally. Amber is
headquartered in London with offices in Europe, North America and
Australia and employs over 180 infrastructure professionals. Amber
has had a strategic partnership with the Hunt
Group of Companies in the US since 2015. Learn more at www.amberinfrastructure.com .
[1] Fair value and NAV movements at 31 December 2023 may be more
or less than $7.6 million depending on the impact of tax, working
capital, and other adjustments applied on that valuation date.
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END
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