Renewable Energy Infrastructure

[bonrepos]

I have a number of ITs in this sector like , I suspect, a lot of other fools.

I have had these holding for some time attracted by the good yield and relatively low volatility
in comparison to the main market. I accepted that the premium always seemed present and large.

I try and keep up with general macro trends but with all the recent increase in energy prices and
with the current focus on green issues I thought that would make this sector more attractive.
So far this has not come through.

One example of my holdings is Jlen environmental Assets IT which I like because it has a wide
portfolio of different assets not to mention a yield of over 6%. However its performance has
been poor this year and the NAV has been negative this year.

I wonder what other fools think about this sector?

[seagles]

Strangely I have been looking at buying into this sector in the last couple of days. The 2 I have been looking at are UKW and TRIG. Not decision made yet though as early days.

[Gerry557]

I think a lot in this area are doing well as a company but at shareholders expense. They often do placing's (see UKW currently) to reduce debt but this dilutes your holdings unless you can take part, which is not always the case. The UKW is allowing a 1 for 13 buy to holders on this particular occasion.

I tend to look at these as low/no growth companies with a growing dividend although this has slowed down too.

You need to buy on market dips really or add when they do placing's as the prices drop close to the offer. Currently 132 for UKW but you can buy in the market for a penny and a half more.

Can get complicated when tax sheltered and you have used your allowance

[funduffer]

Yes, I own Greencoat UK Wind (UKW), and NextEnergy Solar Fund (NESF) in this sector.

My limited (about 1 year) experience of these are the share price goes nowhere, but the yield is great, and the dividend steadily rising.

UKW does these new open offer share sales periodically, but I think this is usually to purchase more renewable assets. More assets leads to more revenue. In the current case it is to acquire a 25% stake in the Burbo Bank Extension offshore wind farm. So if you don't partake, your share of the company falls, but the company grows proportionally so does not really affect the share price or dividend. I topped up on the last occasion, but you only save a few pence on the share price. I won't be partaking this time.

I think of these companies like a type of 'green bond', but unlike the NS&I version, they pay 5%-6% interest rather than the 0.65% on offer at NS&I!

Of course they are not the same, but they behave very similarly.

FD

[dredd0]

I have Greencoat UK Wind (UKW), NextEnergy Solar Fund (NESF) and Gresham House Energy Storage Fund (GRID). I have sold my big oil and recycled into these over the last 18 months, having dumped coal before that. Read into this what you wish.

From the pure investment angle, I am concerned that these renewable energy trusts are in a market which may be overinvested (by people like me as well as institutions), that the funds are buying assets too dearly, and that I am missing the early mover advantages in storage in particular. But the yields are, hopefully, fair recompense for capital risk over the long term. If they are sustainable.

[Alaric]

I think of these companies like a type of 'green bond', but unlike the NS&I version, they pay 5%-6% interest rather than the 0.65% on offer at NS&I!

Of course they are not the same, but they behave very similarly.

That seems about the size of it. What's more, there's a stream of IPOs, both new entrants and existing funds seeking fresh capital for new projects. Capital is at risk, which it isn't with NS&I.

[richfool]

Yes, I own Greencoat UK Wind (UKW), and NextEnergy Solar Fund (NESF) in this sector.

My limited (about 1 year) experience of these are the share price goes nowhere, but the yield is great, and the dividend steadily rising.

UKW does these new open offer share sales periodically, but I think this is usually to purchase more renewable assets. More assets leads to more revenue. In the current case it is to acquire a 25% stake in the Burbo Bank Extension offshore wind farm. So if you don't partake, your share of the company falls, but the company grows proportionally so does not really affect the share price or dividend. I topped up on the last occasion, but you only save a few pence on the share price. I won't be partaking this time.

I think of these companies like a type of 'green bond', but unlike the NS&I version, they pay 5%-6% interest rather than the 0.65% on offer at NS&I!

Of course they are not the same, but they behave very similarly.

FD

I couldn't find a specific thread for NESF., but made a post about NESF, on another thread about Green Energy Infrastructure funds (IT's)., which may be of interest to you, as a holder of NESF:

viewtopic.php?p=510951#p510951

High-yielding NextEnergy Solar lifts dividend target as RPI-linked fund eyes share issue
29 June 2022
The 6.9%-yielding renewable infrastructure fund hopes a 5% increase in this year’s dividend target will help re-rate its shares as it looks to raise more money for a £350m investment pipeline.

NextEnergy Solar (NESF ), the highest-yielding renewable infrastructure fund, will hope a 5% increase in this year’s dividend target will help re-rate its shares as the £642m investment company looks to raise more money for a £350m investment pipeline.

https://www.theaic.co.uk/aic/news/cityw ... -fund-eyes