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13 February 2024
The Renewables Infrastructure Group
Limited
"TRIG" or "the Company", a
London-listed investment company advised by InfraRed Capital
Partners ("InfraRed") as Investment Manager and Renewable Energy
Systems ("RES") as Operations Manager.
Acquisition of a development platform
·
TRIG has acquired 100% equity interest in Fig
Power, a UK-based developer focused on battery storage
·
Acquisition furthers TRIG's technological
diversification and bolsters TRIG's development pipeline with 400MW
of advanced stage battery storage projects
· Fig
Power's management team brings extensive industry experience, has a
proven track record of success in the energy sector, and will
benefit from the expertise of TRIG's Managers
TRIG has acquired a 100% equity
interest in Fig Power, an energy projects developer based in
Bristol, formerly a sister company of Hydrock Consultants Limited.
The expected outlay over the next two years is c. £20m -
approximately half for the upfront consideration and half relating
to ongoing development expenditure. Thereafter, Fig Power is
projected to be self-funding from the proceeds of selling a portion
of its pipeline once developed and prior to construction. Funding
of the business plan will be subject to annual budget reviews and
at the discretion of TRIG.
Fig Power has a 1.7GW development
pipeline in the UK, including nine more advanced projects (c. 400MW
with grid offers ranging from 2025 to 2033) and a further c. 1.3GW
of exclusive sites. Fig Power's two-hour projects are expected to
participate principally in the UK wholesale and balancing markets.
The investment case for the individual projects Fig Power is
developing are not expected to be dependent on the ancillary
services market, which is shallower than the wholesale and
balancing markets.
In addition to securing a pipeline
of projects for TRIG to build, the Investment Manager anticipates
opportunities to sell developed projects to third parties and
crystallise development value for TRIG. Fig Power may also consider
development opportunities in solar PV.
Prudent capital allocation remains a
priority for TRIG. Alongside making investments such as Fig Power,
the Company is at an advanced stage on divestment activities.
Proceeds from these divestments are expected to be applied to
reducing RCF borrowings, which were £364m at 31 December
2023.
Richard Crawford, Head of Energy
Income Funds at InfraRed Capital Partners, said:
"Flexible capacity, of which battery
storage is a key component, is core to the energy transition and
important to the rollout of renewables. Batteries, therefore,
represent an important investment sector for TRIG, providing
diversifying and often complementary revenues to the
portfolio.
Adding development capabilities
within TRIG's investment portfolio creates the opportunity to
capture higher returns for shareholders and generate a proprietary
pipeline through a team that is closely aligned with TRIG's
objectives. Fig Power will leverage the development experience of
TRIG's Managers. InfraRed has a strong track record of investing in
flexible energy platforms for over a decade, most recently in
Statera Energy. RES has been a pioneer in UK battery
storage.
Fig Power also builds on the four
development-stage battery investments that TRIG added in 2022.
Preliminary construction works on the first of these projects began
in January 2024 and we expect to start groundworks on the second
project in H2 2024."
Enquiries
InfraRed Capital Partners Limited
+44 (0) 20 7484 1800
Richard Crawford
Phil George
Minesh Shah
Mohammed Zaheer
Brunswick
+44 (0) 20 7404 5959 / TRIG@brunswickgroup.com
Mara James
Investec Bank
Plc
+44 (0) 20 7597 4000
Lucy Lewis
Tom Skinner
BNP
Paribas
+44 (0) 20 7595 9444
Virginia Khoo
Carwyn Evans
Notes
The Company
The Renewables Infrastructure Group
("TRIG" or the "Company") is a leading London-listed renewable
energy infrastructure investment company. The Company seeks to
provide shareholders with an attractive long-term, income-based
return with a positive correlation to inflation by focusing on
strong cash generation across a diversified portfolio of
predominantly operating projects.
TRIG is invested in a portfolio of
wind, solar and battery storage projects across six countries in
Europe with aggregate net generating capacity of over 2.8GW; enough
renewable power for 1.9 million homes and to avoid over 2.4 million
tonnes of carbon emissions per annum. TRIG is seeking further
suitable investment opportunities which fit its stated Investment
Policy.
Further details can be found on
TRIG's website at www.trig-ltd.com.
Investment Manager
InfraRed Capital Partners is an
international infrastructure investment manager, with more than 170
professionals operating worldwide from offices in London, New York,
Sydney, Seoul and Madrid. Over the past 25 years, InfraRed has
established itself as a developer and steward of infrastructure
assets that play a role in supporting communities. InfraRed manages
US$14bn of equity capital1 for investors around the
globe, in listed and private funds across both core and value-add
strategies.
A long-term sustainability-led
mindset is integral to how InfraRed operates as it aims to achieve
lasting, positive impacts and deliver on its vision of Creating
Better Futures. InfraRed has been a signatory of the Principles of
Responsible Investment ("PRI")2 since 2011 and has
achieved the highest possible infrastructure rating for eight
consecutive PRI assessments, having secured a 5-star rating for the
2023 period3. It is also a member of the Net Zero Asset
Manager's Initiative and is a TCFD supporter.
InfraRed is part of SLC Management,
the institutional alternatives and traditional asset management
business of Sun Life. InfraRed represents the infrastructure equity
arm of SLC Management, which also incorporates BGO, a global real
estate investment management adviser, and Crescent Capital, a
global alternative credit investment asset manager. Further details
can be found on the website at www.ircp.com
[1] Uses
5-year average FX as at 30th September 2023 of GBP/USD of 1.2944;
EUR/USD 1.1291. EUM is USD 13.597m
2 Principles
for Responsible Investment ("PRI") ratings are based on following a
set of Principles, including incorporating ESG issues into
investment analysis, decision-making processes and
ownership policies. More information is available
at https://www.unpri.org/about-the-pri
3 In the 2023
Principles for Responsible Investment ("PRI") assessment, InfraRed
achieved a 5 star rating for the Policy Governance and Strategy and
Infrastructure and a 4 star rating for the newly created Confidence
Building Measures. Please find InfraRed's report available for
download on our website here:
https://www.ircp.com/sustainability/
Operations Manager
TRIG's Operations Manager is RES
("Renewable Energy Systems"), the world's largest independent
renewable energy company.
RES has been at the forefront of
wind energy development for over 40 years, with the expertise to
develop, engineer, construct, finance and operate projects around
the globe. RES has developed or constructed onshore and offshore
wind, solar, energy storage and transmission projects totalling
more than 23GW in capacity. RES supports over 12GW of operational
assets worldwide for a large client base. Headquartered in
Hertfordshire, UK, RES is active in 11 countries and has over 2,500
employees engaged in renewables globally.
RES is an expert at optimising
energy yields, with a strong focus on safety and sustainability.
Further details can be found on the website
at www.res-group.com.