TIDMTEEC
RNS Number : 2295A
Triple Point Energy Efficiency
01 February 2022
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1 February 2022
Triple Point Energy Efficiency Infrastructure Company plc
("TEEC" or the "Company" or together with its subsidiaries, the
"Group")
Update on Operations, Deal Exclusivity and Revolving Credit
Facility
Triple Point Energy Efficiency Infrastructure Company plc
(ticker: TEEC), a closed-ended investment company investing in a
diverse portfolio of energy efficiency assets in the United
Kingdom, is pleased to provide an update on its operations, deal
exclusivity and pipeline development.
Update on the Hydro Portfolio
-- Towards the end of 2021, TEEC invested GBP47 million across a
portfolio of nine ungeared hydroelectric power assets, with a total
generation capacity of 6.6 MW.
-- Q4 2021 performance of the portfolio was 17 per cent. ahead
of budget (which provides the base case for valuation purposes)
from a generation and revenue perspective, and 5 per cent. ahead in
terms of availability.
-- c.90 per cent. of revenues for the Hydro Portfolio are
underpinned by government supported Feed in Tariffs (" FiT ") with
a remaining FiT period of c.14 years.
-- All FiT revenues under the Hydro Portfolio benefit from
annual indexation to UK RPI, with the next uplift due in April
2022. With UK RPI currently at c.7.5 per cent., this is expected to
result in a meaningful uplift to revenues and underpins the highly
defensive and attractive nature of this portfolio.
-- The Investment Manager and the operations and maintenance
provider have commenced investigative work aimed at enhancing the
performance of the hydro assets further (the " Hydro Enhancement
Programme ").
-- The Hydro Enhancement Programme revolves around optimising
the flow from the catchment area which will improve the generation
profile for the assets. A key aspect of this programme is the
re-instatement of peatland which has significant associated
environmental benefits related to biodiversity and carbon
sequestration.
Update on the CHP+ Portfolio
-- Earlier in 2021, TEEC invested a total of GBP29 million
across three CHP+ assets in the form of senior debt with a weighted
average return on capital of 7.65 per cent. The underlying assets
comprise:
o Harvest and Glasshouse (March 2021) - two operational,
established energy centres on the Isle of Wight comprising 22 MW of
power generation facilities; and
o Spark Steam (June 2021) - one operational, established energy
centre located in Teesside comprising 3.3 MW of power generation
facilities.
-- Each of the CHP+ assets supply heat, electricity, and also
carbon dioxide to the UK's largest tomato grower.
-- Spark Steam has signed a new, additional Power Purchase
Agreement with a well-known, large food manufacturer through a
private wire arrangement. This arrangement benefits the food
manufacturer by providing it with savings against its electricity
costs, whilst enabling Spark Steam to benefit from a greater level
of contractual cashflows at more attractive rates. By supplying
power through a short private wire, significantly greater energy
savings will be made than previously expected due to much reduced
transmission losses as compared to sales to the national grid .
Deal exclusivity and Pipeline development
Battery Energy Storage Systems opportunity
The Investment Manager, on behalf of the Company, has been
looking at a number of opportunities to invest in grid-scale
battery energy storage systems in the UK. These fall within the
distributed energy segment of TEEC's mandate.
We are pleased to announce that the Investment Manager has
secured, under exclusivity, a near-term pipeline of GBP108 million
of grid-scale battery energy storage systems assets which it is
progressing.
With the continued roll-out of intermittent renewable energy
facilities across the UK's grid, demand for grid balancing and
storage solutions in the UK is likely to stay high for a
significant period of time. Grid-scale battery energy storage
systems provide one of the most effective and proven solutions to
the issue of loss of electricity in transmission, storing power
when it is produced in excess and then making it available when
demand is higher.
Wider pipeline
In addition to the grid-scale battery energy storage system
opportunities under exclusivity, the Investment Manager is also in
discussions on a wider pipeline of GBP454 million across a range of
sectors.
RCF
Following the investment in the additional portfolio of Hydro
Assets announced in December 2021, TEEC is now substantially
deployed. To fund the short-term pipeline and to allow greater
financial flexibility going forwards, TEEC is in the process of
arranging a revolving credit facility (" RCF ") of up to GBP40
million.
John Roberts, the Company's Chairman, said:
"I am pleased with the performance of TEEC's existing
investments as well as the emerging diverse pipeline of high
quality assets which provides a great opportunity to accelerate
TEEC's growth ambitions. Batteries are essential to improve front
of meter energy efficiency, to maximise and make use of the
intermittent power from the grid scale renewables which are making
up an increasingly larger proportion of the UK's generating
capacity."
For further information, please contact:
Triple Point Investment Management LLP
Jonathan Parr
Jonathan Hick 020 7201 8989
Akur Limited (Financial Adviser)
Tom Frost
Anthony Richardson
Siobhan Sergeant 020 7493 3631
RBC Capital Markets (Joint Broker)
Matthew Coakes
Jill Li
Kathryn Deegan 020 7653 4000
Winterflood Securities (Joint broker)
Neil Langford
Hande Derinkok 020 3100 0000
LEI: 213800UDP142E67X9X28
Further information on the Company can be found on its website:
www.tpenergyefficiency.com .
NOTES:
The Company is an investment trust which invests exclusively in
a diversified portfolio of Energy Efficiency assets in the UK,
which have a positive environmental impact. The Company's
investments will focus on the core sectors of industrial energy
efficiency, distributed generation, and battery storage
solutions.
The Investment Manager is Triple Point Investment Management LLP
("Triple Point") which is authorised and regulated by the Financial
Conduct Authority. Triple Point manages private, institutional, and
public capital, and has a proven track record of investment in
Energy Efficiency and decentralised energy generation projects.
The Company was admitted to trading on the Specialist Fund
Segment of the Main Market of the London Stock Exchange on 19
October 2020 and was awarded the London Stock Exchange's Green
Economy Mark.
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