Aquila sees opportunities for expansion – In its first set of results, Aquila European Renewables Income reports an NAV of €158.9m, 4.8% higher than the NAV at IPO in June 2019. Two 0.75 cent dividends were announced, in line with forecasts. The company is targeting a dividend of 4.0 cents in relation to the year ending 31 December 2020, subsequently increasing to 5.0 cents thereafter.
Another €40m was raised in March 2020 to add to the €154.3m raised at IPO. The company has invested in five operating and income bearing assets, deploying 70.9% of the initial IPO proceeds and has entered into a conditional commitment for a further 23.8% in relation to a sixth asset, an in-construction wind farm . The company now has an interest in a 132 MW of operating assets, located in Denmark, Norway, Finland and Portugal.
The portfolio produced 318.5 GWh of electricity, 5.1% below budget. The shortfall is directly related to the portfolio’s wind assets, as they were collectively off target by 10.4% as a result of below-average wind conditions and minor disruptions (below-average wind conditions during this period were an industry wide phenomenon and have improved in 2020).
“Europe is expected to generate 87% of the electricity mix from renewables by 2050 with wind and solar PV being the most prominent. It is expected that onshore wind will contribute approximately 80% of the wind electricity provided to the European grid. Hydropower is also seen as a key source of energy, providing around 14% of electricity for the period 2018-2050. By 2030, more than half of Europe’s electricity is expected to be supplied by wind and solar PV. With respect to fossil fuel, coal and gas are expected to be in constant decline from 35% in 2017 to 10% by 2032. Nuclear is also expected to phase-out from 25% in 2017 to 8% in 2050. The advancement of the renewables market is anticipated to drive investments totaling USD 1.8 trillion until 2050, providing sufficient opportunity for the company’s continued growth.”
AERI : Aquila sees opportunities for expansion