REG - Renew Infra Grp Ld - Acquisition of a Development Platform

Renewables InfrastructureAnnouncement

13/02/2024 07:00

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RNS Number : 8878C  Renewables Infrastructure Grp (The)  13 February 2024

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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
(http://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
capital(1) 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 period(3). 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 (http://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
(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 (http://www.res-group.com/) .

 

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