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Renewable Energy Infrastructure

Closed-end funds and OEICs
surdavy
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Renewable Energy Infrastructure

#463810

Postby surdavy » December 7th, 2021, 12:08 pm

Hi All,
Does anyone have any experience/views on the Renewable Energy Infrastructure sector. As I am reasonably diversified in most sectors I would like to get into a new sector. I have been looking at Foresight Solar but the divi looks too good to be true, am I missing something or being over cautious.
All views and suggestions would be most welcome.
Surdavy

dundas666
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Re: Renewable Energy Infrastructure

#463832

Postby dundas666 » December 7th, 2021, 12:46 pm

There's an old thread that probably covers a lot of what you might be interested in:
https://lemonfool.co.uk/viewtopic.php?f=8&t=17343

BullDog
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Re: Renewable Energy Infrastructure

#463840

Postby BullDog » December 7th, 2021, 12:57 pm

Yes, I have exposure to wind energy and pumped storage hydro via SSE and their projects. I have exposure to grid scale battery storage through Gresham House Energy Storage GRID and Harmony Energy Income Trust HEIT. The latter recently floated and is still available at par for 100p. HEIT is partnered with Tesla for a few battery storage projects in the UK. As far as I am aware, HEIT is the only renewable energy focused investment trust not presently trading at a premium. HTH.

seagles
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Re: Renewable Energy Infrastructure

#463897

Postby seagles » December 7th, 2021, 3:35 pm

I have just added Renewables to my portfolio (makes me feel like I am contributing to saving the planet, :D ). Have gone for UKW in mine and my daughters portfolios. Was considering TRIG as well, but that maybe for a future punt. However, I also see renewables in SSE and some of my other ITs have an interest as well.

taken2often
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Re: Renewable Energy Infrastructure

#465122

Postby taken2often » December 11th, 2021, 9:42 pm

Thanks Bulldog

Had a look at Harmoney this week. Market not very active this week, so no automatic trade through H-L. Had to leave an order. Price 102 but got them at 99p. They did manage to pull in about 185m. This now my 61st IT. Will it work who knows. Storage is the only way to make renewables work.

BullDog
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Re: Renewable Energy Infrastructure

#465169

Postby BullDog » December 12th, 2021, 8:45 am

taken2often wrote:Thanks Bulldog

Had a look at Harmoney this week. Market not very active this week, so no automatic trade through H-L. Had to leave an order. Price 102 but got them at 99p. They did manage to pull in about 185m. This now my 61st IT. Will it work who knows. Storage is the only way to make renewables work.

Well done. A good time to enter this one, I believe. Harmony is an established energy business and they are partners with Tesla for the energy storage business. The technology works. Once the projects start to come on line you can likely expect the trust to trade significantly above NAV. Based on the performance of Gore Street Energy and Gresham House Energy storage trusts, the already established trusts in the same business. Energy storage at grid scale remains in it's infancy while interuptible renewable energy becomes an ever greater part of the energy mix in the UK.

dundas666
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Re: Renewable Energy Infrastructure

#465372

Postby dundas666 » December 12th, 2021, 9:26 pm

Yes storage of unpredictable renewable energy generation is going to be the key to switching away from burning fossil fuels for energy, but many of these companies are only doing comparatively small-scale (albeit very important) grid balancing rather than grid-scale storage, but it's very, very early days for all of this so we don't know how it will all end up. OTOH these could also be used as energy trading assets for buying electricity cheaply overnight and then selling during peak periods.

Incidentally the combination of the impending mass adoption of electric vehicles and vehicle-to-grid capability looks a likely practical solution to large-scale storage of unpredictable renewable energy generation. Full Charged did a recent video from Utrecht where the city council estimated that they only needed 10% of the existing vehicles to be electric and vehicle-to-grid enabled to meet the city's renewable balancing requirements. Google "Fully charged Largest Vehicle-To-Grid Charging Project On The Planet?" if you're interested.

depota
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Re: Renewable Energy Infrastructure

#471269

Postby depota » January 7th, 2022, 8:46 pm

Hi,

very interesting sector. Some would call this asset class private markets and there are about 15 funds/trusts/plc in the UK. Interesting dividend yields can be achieved, most try between 5 and 7. Some are steady cash flows, some a bit more expose to market risks.

A lot to consider, currently one of my favour cluster to invest in.

PS: Foresight is very interesting at the moment. Had some discounts on their NAV, but looks like they are catching up again.

BullDog
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Re: Renewable Energy Infrastructure

#471270

Postby BullDog » January 7th, 2022, 8:49 pm

depota wrote:Hi,

very interesting sector. Some would call this asset class private markets and there are about 15 funds/trusts/plc in the UK. Interesting dividend yields can be achieved, most try between 5 and 7. Some are steady cash flows, some a bit more expose to market risks.

A lot to consider, currently one of my favour cluster to invest in.

PS: Foresight is very interesting at the moment. Had some discounts on their NAV, but looks like they are catching up again.

Best to be patient and wait for discounts or new capital raise events to buy in with no premium. I won't buy anything above par to NAV.

JuanDB
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Re: Renewable Energy Infrastructure

#471291

Postby JuanDB » January 7th, 2022, 9:36 pm

Gore Street Energy Storage fund LON:GSF did a couple of raises last year with retail access through PrimaryBid. Has the advantage of pricing at a discount to nav and avoiding both trading and stamp duty fees. Worth keeping an eye out for future raises. Only downside is if the raise is over subscribed you may get scaled back.

UncleEbenezer
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Re: Renewable Energy Infrastructure

#471378

Postby UncleEbenezer » January 8th, 2022, 12:52 pm

BullDog wrote:Best to be patient and wait for discounts or new capital raise events to buy in with no premium. I won't buy anything above par to NAV.

Possibly relevant to NAVs in the sector: viewtopic.php?f=106&t=32798#p470746

mickeypops
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Re: Renewable Energy Infrastructure

#471560

Postby mickeypops » January 9th, 2022, 2:48 pm

I hold the Renewables Infrastructure Group (TRIG) as part of our IT income portfolio and it has performed well for us. The capital value is up 28% since the portfolio's completion (31.07.18) and the yield is 6.3% v. the original value, and about 5% at the current price. It has sailed through the pandemic with little fuss and no dividend cuts.

It's a good diversifier away from more equity focused trusts I think.


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