TIDMTEEC
RNS Number : 8686G
Triple Point Energy Efficiency
01 April 2022
NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, DIRECTLY OR
INDIRECTLY, IN OR TO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN,
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PUBLICATION, DISTRIBUTION OR RELEASE OF THIS ANNOUNCEMENT WOULD BE
UNLAWFUL.
1 April 2022
Triple Point Energy Efficiency Infrastructure Company plc
("TEEC" or the "Company" or together with its subsidiaries, the
"Group")
Investment in portfolio of Battery Energy Storage System
("BESS") assets
The Board of Directors of Triple Point Energy Efficiency
Infrastructure Company plc (ticker: TEEC) is pleased to announce
that the Group, via TEEC Holdings Ltd, has signed contracts to
provide a debt facility (the " Facility ") to a subsidiary of
Virmati Energy Ltd (trading as " Field ") (the " Borrower "), for
the purposes of building a portfolio of four geographically diverse
Battery Energy Storage System (" BESS ") assets in the UK (the "
Portfolio "). The total Facility amounts to GBP45.6 million and
carries a fixed interest rate which will support TEEC to meet its
dividend target.
The Portfolio has a total capacity of 110MW. The first BESS
asset, which is a one hour duration battery, is expected to become
operational in June 2022. It is located in the North of England and
has a total capacity of 20MW. The other three BESS assets are
located in Scotland (two hour duration battery; total capacity
50MW), Wales (two hour duration battery; total capacity 20MW), and
the South East of England (one hour duration battery; total
capacity 20MW). These are expected to become operational in
2023.
Key terms of the Facility include:
-- funding will only occur once the projects are each
sufficiently de-risked against construction and operational risks.
It is expected that draw down will take place over the financial
year to 31 March 2023;
-- committed amortising term of 18.25 years following an initial 1 year period;
-- increased yield in the event of inflation (consumer price
index) exceeding base case expectations, subject to a cap;
-- security including, amongst other rights, charges over the assets of the Borrower;
-- TEEC will receive an arrangement fee, annual monitoring fees,
and a non-utilisation fee on undrawn amounts of the Facility;
and
-- the Borrower benefits from an ESG margin ratchet which
delivers a potential reduction in the rate payable if ambitious
avoided carbon targets are met during trading.
The Portfolio forms part of the pipeline of BESS asset
investment opportunities identified by the Company in its
announcement of 1 February 2022, including over 500MW of further
assets to be commissioned by Field. With the continued roll-out of
intermittent renewable energy facilities across the UK's grid,
demand for grid balancing and storage services in the UK is likely
to stay high for a significant period of time. Grid-scale battery
systems provide one of the most effective and proven solutions to
this requirement, storing power when it is produced in excess and
then making it available when demand is higher. As with other
infrastructure asset classes, long-term debt capital has an
important role to play in the scale up of BESS in the UK.
Field was established in 2020 with a vision to finance, build,
operate and monetise the renewable infrastructure needed to reach
net zero, starting with battery storage, and has aspirations to be
a market leader in sustainable practices in energy storage.
Alongside Field, the Group has negotiated robust provisions around
responsible sourcing, as well as a strategy for tracking emissions
associated with the projects, including scope 3. The Group also has
consent rights over recycling strategy at end of cell life to
ensure it meets its environmental standards.
This transaction is in line with the Company's targeted
risk/return profile and objective of delivering a portfolio of
secure investments that generates a total return for investors
comprising sustainable and growing income and capital growth
predominantly supported by long-term contracts. It also supports
the transition to a low carbon economy in accordance with the UK
government's overall environmental targets.
Commenting on the transaction, John Roberts, the Company's
Chair, said:
"Now more than ever, we are seeing the increasingly urgent need
for energy efficiency solutions. As the world moves towards greater
use of renewable sources of energy, battery storage is essential to
improve front of meter energy efficiency, maximising and making use
of the intermittent power generated from such renewable sources.
Efficient use of such power reduces the reliance on traditional
fossil fuel generation, thus reducing energy costs and carbon
emmissions."
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
Field was advised on this transaction by Elgar Middleton.
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 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 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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