Business
General Update
General Update.
About this update from Aquila European Renewables Plc Registered
[{"type":"text","content":"\n \n \n RNS Number : 2985I\n Aquila European Renewables Income\n 31 March 2020\n \n \n \n \n \n \n \n \n \n \n \n 31 March 2020\n \n \n Aquila European Renewables Income Fund - General Update\n \n \n \n \n \n COVID-19 Update\n \n \n Since the launch of Aquila European Renewables Income Fund plc (\n \"\n AERIF\" or the \"Fund\") in June 2019, the portfolio has been built on the basis of a robust investment strategy, from which AERIF is currently benefiting. In particular, this includes assets with low gearing, the lowest possible foreign currency impact and a high level of contracted revenues in the near and mid-term. Further, the portfolio of assets is diversified across renewable technologies, energy markets and regions.\n \n \n The Fund's existing investments in Sagres, Holmen II, Tesla, Olhava, Svindbaek I and II are connected to the power grid as existing investments and continue to produce electricity regardless of current market conditions. There is no project development risk for these investments. \n \n \n Each of the Fund's existing investments continue to benefit from contracted revenue either in the form of government subsidies (i.e. feed-in tariffs) or private power purchase agreements (\n \"PPA\") \n which last between 6 and 10 years. As a result, the electricity prices for a large portion of the production volume are protected and not fully dependent on short to medium term macroeconomic developments. Over 70% of the present value of AERIF's forecast revenue over the next 5 years is contracted in the form of governmental subsidies or fixed price PPA, providing excellent earnings visibility.\n \n \n As a result of the pro-active asset management practices implemented by Aquila Group, all existing facilities are technically in top condition and production is not affected by current market conditions. In fact, the production during January and February outpaced forecast across all investments in the portfolio. Aquila Group's asset management teams are in close contact with the technical and commercial operating managers of the affiliated companies in order to continue to ensure the best possible operation of the plants and, if necessary, to react to changing risk profiles.\n \n \n AERIFs investment adviser, Aquila Capital Investmentgesellschaft mbH (\"Investment Adviser\n \"\n ) and oth...