Harmony Energy Income produces strong first set of results

Harmony Energy Income has published its first full set of accounts. These cover the period from its incorporation on 1 October 2021, through its IPO on 9 November 2021 and run up to 31 October 2022. The fund raised £210m at launch and by the end of October 2022 these assets had grown to £257.8m or 122.7p per share. This was augmented by its £14.8m C share issue on 14 October, and debt finance facilities of up to £130m.

Thanks to the mini budget, a sizeable discount had opened up on the trust at the end of October, but that has almost closed since and, with the C share conversion complete, the shares are currently trading at a 2.4% discount.

Dividends totalling 2p per share have been declared so far – in line with initial projections. Harmony Energy Income says that it is on track to meet its target returns of paying an 8p dividend on the ordinary shares for the 2023 financial year, paid quarterly commencing in March 2023.

Today, it has nine projects just one of which (Pillswood) is operational, seven are under construction and the ninth (Rye Common) is awaiting final planning permission for its second phase and has a plan to commence operations in the third quarter of 2024. Five of the seven under construction, totalling 214.5MW should come on stream over the course of 2023.

Harmony Energy Income can earn money both by trading fluctuations in power prices and through the capacity market.

Capacity market

The Capacity Market auctions which took place in February 2022 saw record prices in both the T-1 and T-4 auction (see our glossary item on the capacity market for an explanation). Due to an undersupply of qualifying generation plant, the T-1 auction cleared at its maximum amount of £75/kW/yr. The T-4 auction cleared at a record high level of £30.59/kW/yr as some of the older generation plant (coal and nuclear) failed to take contracts.

Pillswood, Rusholme and Little Raith each secured 15-year index-linked contracts (commencing in October 2025) at £30.59 /kW/yr in the T-4 auction (commencing in October 2025). Farnham and Broadditch projects secured similar length contracts in the T-4 auction 2021 (commencing in October 2024) at a clearing price of £18 /kW/yr. None of Harmony Energy’s projects participated in the T-1 auction in February 2022.

In the most recent auction held on 14 February 2023,  Pillswood, Broadditch, Farnham and Rusholme projects secured T-1 Capacity Market for delivery from October 2023 at the price of £60/kW/yr, the second highest T-1 price on record. The combined contracts represent a total of £3.65m of revenue in exchange for services to be delivered between October 2023 and September 2024. The Bumpers project as well as the recently acquired Wormald Green and Hawthorn Pit projects, each pre-qualified for the T-4 auction held on 21/22 February 2023 (for delivery from October 2026). The Rye Common project is anticipated to pre-qualify for the 2024 auctions, once final planning for Phase 2 has been obtained.

Capacity Market revenue can be earned simultaneously with normal daily operating strategies without disruption. This is known as “stacking” revenues.


The trust has an exclusive right of first refusal to acquire up to 1 GW of battery energy storage projects from Harmony Energy Limited. 494.4 MW has been acquired, leaving at least 505.6 MW. The investment adviser has identified more than 400 MW in Great Britain which have the potential to be acquired over the next 12 months, and could commence operations over the next 36 months. [There’s a strong hint here that more money needs to be raised from investors.]

HEIT : Harmony Energy Income produces strong first set of results


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