Investec view: This morning, Greencoat UK Wind (UKW) announced a NAV of 167.1p/share as at 31 December 2022. This reflects an increase of 12.1p/share in the fourth quarter (+7.8%) and 33.6p/share (+25.1%) over the year. The increase in Q4 was driven by an update to its power price assumptions, which added c.20p/share, offset by the impact of the Electricity Generator Levy (EGL), which reduced NAV by 8p/share. Overall, 2022 generation was 5% below budget reflecting lower wind resource in H2; however, given the elevated power price environment, the 2022 dividend was covered 3.2x by operational cashflow. UKW has maintained an RPI-linked dividend since launch in 2013. It announced a dividend target of 8.76p/share for 2023 (current yield of 5.7%), which represents an increase of 13.4% versus 2022, in line with December RPI. Whilst the forward power price curve has reduced materially over recent months, it remains elevated against historic levels, albeit with significant volatility. The EGL has removed a significant amount of the upside above £75/MWh; however, UKW is the largest beneficiary in the listed renewables sub-sector from the elevated power price environment given its limited PPA fixes. The company continues to generate significant cashflow and this more than underpins its RPI-linked dividend and also allows excess cashflow to be reinvested into pipeline assets. We reiterate our Buy recommendation. Power prices: The forward curve for short-term power prices used in the 31 December valuation has reduced from the levels seen in Q3 (see page 2), and is at a similar level to that used in the Q2 NAV. UKW had not included the higher Q3 forward curve in its Q3 NAV as at 30 September 2022, given the elevated level and heightened volatility. The short-term power price assumptions now baked into the valuation are an average of £120/MWh for both 2023 and 2024. The company has retained a discount of c.30% to the forward curve. The previous valuation included a c.50% discount, with implied prices of £120/MWh for 2023 and £90/MWh for 2024. The discount applied has reduced given the greater clarity on the regulatory environment following the EGL. Balance sheet: UKW has aggregate group debt of £1.78bn (31% of GAV) comprising £900m of term debt, £680m share of Hornsea 1 debt and £200m of drawings on its RCF (£600m capacity). The company is committed to acquire Kype Muir (c.£50m, although c.£40m has been funded to date) and South Kyle (£320m). The company has £160m of cash on its balance sheet, and this, alongside excess forecast cashflow in H1, will be used to finance these commitments.