TIDMTEEC
RNS Number : 8006T
Triple Point Energy Efficiency
29 November 2021
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29 November 2021
Triple Point Energy Efficiency Infrastructure Company plc
("TEEC" or the "Company" or together with its subsidiaries, the
"Group")
Investment in portfolio of hydroelectric power assets
The Board of Directors of Triple Point Energy Efficiency
Infrastructure Company plc (ticker: TEEC) is pleased to announce
that the Group has acquired a portfolio of operational, Feed in
Tariff (" FiT ") accredited, "run of the river" hydroelectric power
projects in Scotland (the " Hydro Assets ") for an aggregate
consideration of GBP26.6 million (excluding costs). This investment
was identified in the IPO prospectus and formed part of the
original pipeline.
The Company announced on 29 September 2021 that it had secured
exclusivity to acquire a portfolio of Hydro Assets. The portfolio
acquired comprises six Hydro Assets with a total installed capacity
of 4.1MW, all of which have five years or more of operational
performance history. The Company continues to have exclusivity to
acquire a further three Hydro Assets, valued up to GBP19.7 million
and it is expected that these additional projects will be acquired
in Q1 2022. The Hydro Assets benefit from the FiT, government
supported pricing that provides a payment for every kWh of
electricity produced, and a price floor (the " Export Tariff "). To
the extent the Hydro Assets are able secure prices higher than the
Export Tariff, they are able to enter power purchase agreements ("
PPAs ") with commerical offtakers.
The Hydro Assets were owned by entities advised by the
Investment Manager and, as a result, additional measures were
implemented and carefully monitored to manage any potential
conflict of interest appropriately, including dedicated buy and
sell side teams within the Investment Manager and obtaining an
independent third-party valuation. In accordance with the IPO
Prospectus, the Board were required to approve the transaction and
were satsified by the conflict management procedures put in
place.
The Hydro Assets have a remaining FiT period of c.14 years, and
a useful life beyond the remaining FiT period of a further 20
years, during which the Hydro Assets would be operated as
unsubsidised assets selling power to the grid through PPAs.
Each of the Hydro Assets is subject to a long-term lease with
the local landowners, the majority of which are with Forestry and
Land Scotland, which cover the expected useful life of the asset,
with rent based on a percentage of gross income of the asset. They
are also subject to an operations and maintenance contract with
Green Highland Renewables, one of the UK's leading developers and
services provider for hydropower schemes.
The Investment Manager has identified a number of opportunities
to optimise the efficiency of the Hydro Assets, in particular, to
help to regulate the flow feeding existing intake, protecting
against periods of unusually high or low rainfall, thus increasing
overall generation. Such projects will also be valuable in
regulating power generation in the future when the assets are
subject only to PPAs.
The Hydro Assets have been assessed to deliver nearly 4,000
tCO2e of avoided emissions per annum based on average generation
assumptions and modelling indicates that performance of the assets
is relatively robust under climate change scenarios which see
increasing seasonality and extremes of precipitation and river
flows. The Hydro Assets have also been developed in line with the
Scottish Environmental Protection Agency (SEPA) biodiversity
standards for "run of the river" hydropower schemes, for example,
with relevant measures in place to enable the safe passage of
fish.
The transaction is aligned with the Company's targeted
risk/return profile and objective of delivering secure investments
that generate a total return for investors comprising sustainable
and growing income and capital growth. It also supports the
transition to a low carbon economy in accordance with the UK
government's overall environmental targets.
John Roberts, the Company's Chairman, said:
"I am delighted that TEEC has acquired the portfolio of Hydro
Assets which were first identified ahead of our IPO. Not only does
this portfolio deliver in terms of avoiding carbon emissions, the
Investment Manager has identified a number of opportunities to
improve the performance of the assets further. We look forward to
closing the next phase of this investment soon."
For further information, please contact:
Triple Point Investment Management LLP (via FTI below)
Jonathan Parr
Jonathan Hick
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
FTI Consulting
Ed Berry 07703 330 199
Mitch Barltrop 07807 296 032
LEI: 213800UDP142E67X9X28
Further information on the Company can be found on its website:
www.tpenergyefficiency.com .
NOTES:
The Company is a recently incorporated 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: low carbon
heat distribution; social housing retrofit and industrial energy
efficiency; and distributed generation.
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. In
2018, Triple Point was appointed as the Delivery Partner to BEIS, a
department of the UK government, to deliver the GBP320 million Heat
Networks Investment Project ("HNIP").
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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