REG - Renew Infra Grp Ld - Announcement of Interim Results

Renewables InfrastructureAnnouncement

08/08/2025 07:00

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RNS Number : 5005U  Renewables Infrastructure Grp (The)  08 August 2025

 

 

8 August 2025

The Renewables Infrastructure Group Limited

"TRIG" or "the Company", a London-listed renewables investment company advised
by InfraRed Capital Partners ("InfraRed") as Investment Manager and Renewable
Energy Systems ("RES") as Operations Manager.

Announcement of Interim Results for the six months to 30 June 2025

£199m of operational cash generated despite low wind resource in the UK,
France and Germany:

·      In line with the expectation set out in the Q1 2025 Net Asset
Value ("NAV") update, dividend cover was 1.0x in the period (30 June 2024:
1.1x), or 2.2x before the repayment of £105m of project level debt. TRIG's
dividend guidance of 7.55p/share for FY 2025 is reaffirmed by the Board.

·      Generation in the period was 10% below budget driven by poor wind
resource.

·      Offshore export cable faults are now fixed. Further insurance
payments on account received in the period and expected in H2 2025 for East
Anglia 1. Insurance claim continues to be progressed for Hornsea 1. Financial
impact of Beatrice OFTO outage non-material given commercial protections in
place.

·      TRIG's balance sheet strength underpinned by amortising and fixed
interest rate debt, with no significant interest rate or refinancing risk(1).
Forecast revenues benefit from 81% fixed per unit of electricity generated for
the next 12 months.

·      H1 2025 saw a 7.7p reduction in NAV per share to 108.2p as at 30
June 2025 (31 December 2024: 115.9p), predominantly due to external factors
including lower power price forecasts.

·      The positive impact of technical enhancements relating to turbine
hardware and software upgrades on several projects across the portfolio added
£19m to portfolio value.

·      The weighted average portfolio discount rate increased by 0.2% in
the period to 8.8% (31 December 2024: 8.6%), with discount rates for projects
based in mainland Europe having been increased by 30 basis points in the
period.

1.     As at 30 June 2025, TRIG had £1.8bn of fixed-rate, amortising
project level debt and £0.3bn RCF borrowings. The RCF was refinanced in the
period and has a maturity date of 31 March 2028

Disciplined capital allocation:

·      Share price materially improved since publication of 2024 Annual
Results but recognition from the Board and Managers that more needs to be done
to deliver further improvement.

·      Action being taken includes progressing new debt financings and
further disposals. Share buybacks continue to set the hurdle rate for new
investments. The pace of the buyback programme is regularly reviewed by the
Board and amongst other factors will reflect the prevailing share price and
the Company's resources.

·      Since commencement of TRIG's share buyback programme, 80m shares
have been repurchased for £67m, recognising the accretive investment
opportunity presented by acquiring TRIG's shares when they are trading at
their current discount to NAV. Share buybacks added 0.6p to the Company's NAV
per share in the period to 30 June 2025.

·      During the period the Board and Managers approved the repowering
of the Cuxac onshore wind farm in France. The repowered site will be 25MW,
which is more than twice the generation capacity of the current project and it
will benefit from a new 20-year, inflation linked tariff.

A large, diversified portfolio of renewable energy assets, with a significant
1GW development pipeline:

·      2.7TWh of clean electricity was generated during the period (30
June 2024: 2.9TWh), which is the equivalent of displacing 0.9 million tonnes
of carbon emissions.

·      Construction of the 78MW two-hour Ryton battery storage project
in the UK remains on time and on budget, with batteries now being installed
ahead of energisation towards the end of the year.

·      The 100MW two-hour Spennymoor battery storage project in the UK
is being prepared for final investment decision

in Q3 2025.

·      We welcome the UK government's decision to extend the term of new
Contracts-for-Difference ("CfD") from 15 to 20 years as well as allow
repowered projects to bid for new CfDs. Whilst no residual value is assumed
for the vast majority of the portfolio this policy change improves the
prospects for the Company beyond the lifespan of the current asset base.

·      Operational and technical enhancements to deliver capital growth
through enhanced energy yields are being rolled out across the portfolio this
summer, with the programme for 2026 being developed.

·      TRIG's expert management team draws from the investment pedigree
of InfraRed and operational excellence of RES to enhance the value of TRIG's
portfolio and enhance the Company's growth potential.

Richard Morse, Chair of TRIG, said: "Of fundamental importance for investment
companies to succeed in this uncertain environment is a close attention to
risk management, with diversification and scale being important components,
and the execution of a growth strategy, to provide the risk and reward balance
that shareholders seek. TRIG is already well placed and the Board and Managers
are committed to furthering these fundamentals to provide resilient and
attractive returns to our investors."

Enquiries

InfraRed Capital Partners
Limited                              +44 (0) 20
7484 1800

Minesh Shah

Phil George

Mohammed Zaheer

 

Brunswick
+44 (0) 20 7404 5959 / TRIG@brunswickgroup.com

Diana Vaughton

Charles Malissard

 

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 markets in Europe with a net operational capacity of 2.3GW. During
2024 TRIG's portfolio generated enough clean energy to power the equivalent of
1.6 million homes and avoid 2.0 million tonnes of carbon emissions.

 

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 asset manager,
with more than 160 professionals operating worldwide from offices in London,
New York, Madrid, Munich,(2) Sydney and Seoul. Over the past 25 years,
InfraRed has established itself as a highly successful developer and steward
of infrastructure assets that play a vital role in supporting communities.
InfraRed manages US$13bn of equity capital(1) for investors around the globe,
in listed and private funds across both core and value-add strategies.

InfraRed is part of SLC Management, the institutional alternatives and
traditional asset management business of Sun Life.

For more information, please visit www.ircp.com. (https://www.ircp.com.)

 

(1) Uses five-year average FX as at 31 December 2024 of GBP/USD of 1.2818;
EUR/USD 1.1092. EUM is USD 13.186bn.

(2) Being launched in 2025

 
Operations Manager

 

TRIG's Operations Manager is RES ("Renewable Energy Systems"). RES is the
world's largest independent renewable energy company, working across 24
countries and active in wind, solar, energy storage, biomass, hydro, green
hydrogen, transmission, and distribution. An industry innovator for over 40
years, RES has delivered more than 24GW of renewable energy projects across
the globe and plans to bring more than 22GW of new capacity online in the next
five years.

As a service provider, RES has the skills and experience in asset management,
operations and maintenance (O&M), and spare parts - supporting 41GW of
renewable assets across 1,300 sites. RES brings to the market a range of
purposeful, practical technology-based products and digital solutions designed
to maximise investment and deployment of renewable energy. RES is the power
behind a clean energy future where everyone has access to affordable zero
carbon energy bringing together global experience, passion, and the innovation
of its 4,500 people to transform the way energy is generated, stored and
supplied.

Further details can be found on the website at www.res-group.com
(http://www.res-group.com/) .

 

Chair's Statement

The Renewables Infrastructure Group is a large and diversified London-listed
renewables investment company. In the first half of 2025, our 2.3GW portfolio
produced 2.7TWh of clean electricity. Cash generated from the portfolio and
disposal proceeds received funded the payment of £92m in dividends, the
repurchase of 51m shares for £40m, the reduction in debt by £113m and £39m
of construction and development activities.

We are pleased to have set out our disciplined approach to capital allocation
and our clear vision for growth at the Company's Capital Markets Day in May
2025, and are grateful to shareholders for their ongoing support. Whilst it is
encouraging that the share price discount to NAV has narrowed, we consider the
current 21% discount to be disappointing and remain focused on ensuring that
the share price properly reflects the value of TRIG's portfolio. We are
progressing TRIG's disposal programme alongside raising new debt financing to
drive further accretive capital rotation. The pace of the buyback programme is
regularly reviewed by the Board and amongst other factors will reflect the
prevailing share price and the company's cash resources.

TRIG's Managers have successfully continued to deliver value with development
activities and a range of technical enhancements adding to portfolio value in
the period. Their initiatives are supported by the Company's robust balance
sheet. The vast majority of debt bears a fixed interest rate and is being
fully repaid in line with an amortisation schedule, thus largely mitigating
interest rate and refinancing risks. This structure provides the foundations
for TRIG to self-fund growth without reliance on equity markets - a key
competitive edge for future growth.

Low wind resource meant that the Company's underlying portfolio generation was
10% below budget for the half year. The portfolio delivered £199m of
operational cash flows(1) in the period. This cash generation represents gross
cash cover of 2.2x of the 7.55p dividend target for 2025, or 1.0x net dividend
cover after the repayment of £105m portfolio-level debt across the Group(2).
This is in line with expectations set out in the Q1 2025 NAV update published
on 6 May 2025. Low generation as a result of particularly poor wind speeds in
H1 can be expected to impact H2 cash flows meaning that covering the FY 2025
dividend may be tight. The Board reaffirms the dividend target for 2025 of
7.55p per share, and will aim to rebuild net dividend cover in 2026 back
towards the steady-state, long-term average of 1.1x to 1.2x.

TRIG's Managers, InfraRed and RES, continue to take an active approach to
revenue management, with 81% of forecast revenues fixed per unit of
electricity generated for the next 12 months and 70% over the next 10 years.
The management team continues to progress securing a 10-year corporate power
purchase agreement for c. 2% of TRIG's annual generation, at a price
consistent with TRIG's long term power price forecast, which is expected to be
signed in Q3 2025. Additionally, 58% of portfolio revenues are directly linked
to inflation over the next 10 years. Both of these attributes provide good
revenue stability and support the funding of reinvestment to ensure long-term
success of the business.

The Managers continue to pursue debt issuance and further strategic disposals,
with the aim of raising £300m to support the Board's capital allocation
objectives - with share buybacks providing a hurdle rate for new investments.
As set out at the Capital Markets Seminar in May 2025, the Investment Manager
has been progressing a £150m debt private placement, which is expected to be
concluded in H2 2025. NAB and NatWest have been appointed as joint placement
agents for the Company.

The Company's Net Asset Value (NAV) per share as at 30 June 2025 was 108.2p, a
7.7p reduction from 31 December 2024. This reduction has largely been driven
by external factors including lower power price forecasts (-5.1p), increases
in discount rates (-1.2p) and particularly low wind resource in the period
(-2.6p). The significant reduction in medium-term power price forecasts was
dominated by reduced growth in the electricity demand assumptions by one of
TRIG's three forecasters. The political and regulatory backdrop has weighed on
asset pricing and transaction liquidity in the sector, as reflected in the
increase of the portfolio average discount rate to 8.8%. The positive impact
of technical enhancements relating to turbine hardware and software upgrades
on several projects across the portfolio, added £19m to portfolio value. The
Managers are developing their 2026 enhancements programme.

Looking forward, the Managers are progressing TRIG's 1GW development pipeline.
This period saw the final investment decision for repowering the Cuxac onshore
wind farm in France approved, with a new 20-year inflation-linked tariff
secured alongside the deployment of new turbines in place of the original
turbines to increase the site capacity from 12MW to 25MW. In the UK,
construction of the Ryton battery storage project near Newcastle remains on
time and on budget with the batteries delivered to the site and being
installed ahead of energisation, which is expected towards the end of the
year. As with the wider development and construction pipeline, both projects
are financed organically from TRIG's own resources.

I am pleased to report that during the period, the Board reached an agreement
with the Managers to adjust the basis and improve the alignment of the
investment and operations management fees to an equal weighting of Net Asset
Value and market capitalisation. This new arrangement was announced to the
market on 26 March 2025 at which time it was expected to reduce the annualised
fee by 28%, compared to the management fee paid in 2024. Further, the Board
tabled a motion to introduce a continuation vote into the Company's Articles,
which was approved by shareholders at TRIG's 2025 Annual General Meeting.

The Board commissioned a third-party adviser to review the process by which
the new management fee was negotiated and presented to the market. The key
observation was that in addition to the extensive engagement by the Board with
investors during the autumn and winter of 2024 on the principles of the new
arrangements, some of the Company's shareholders would have liked to have been
consulted on the proposed changes to the fee arrangements under negotiation
with the Managers before they were announced to the market. The Board has been
receptive and responsive to the feedback and recommendations received and
looks forward to continuing proactive engagement with the Company's
shareholders.

Outlook

Political support for the energy transition across Europe remains; however, in
recent times the UK has suffered from the uncertainty caused in the sector
linked to potential changes to future electricity market arrangements by the
UK Government. We are pleased with the announcement that the government
intends to continue with a single national wholesale market and look forward
to this bringing greater liquidity to the transaction market. TRIG is well
placed to support the UK's ambition to deliver its Clean Power 2030 ambitions,
and has submitted 1GWh battery storage capacity into the Gate 2 process with
revised grid connection dates expected to be communicated to developers by the
end of the year.

One of TRIG's distinctive strengths is that it offers liquid access to a
diversified portfolio of UK and European renewables infrastructure projects at
scale. Our aim is to deliver attractive total returns to shareholders through
resilient income and capital growth. An investment at TRIG's 31 July 2025
share price would have an implied long-term annualised return of 10%(3), with
a dividend yield of over 9%(4). Underpinned by TRIG's robust balance sheet, we
are able to buy back shares while investing accretively where new investments
beat the hurdle rate set by share buybacks.

Of fundamental importance for investment companies to succeed in this
uncertain environment is a close attention to risk management, with
diversification and scale being important components, and the execution of a
growth strategy, to provide the risk and reward balance that shareholders
seek. TRIG is already well placed and the Board and Managers are committed to
furthering these fundamentals to provide resilient and attractive returns to
our investors.

Richard Morse

Chair

7 August 2025

1.     On an Expanded basis. Please refer to the Financial Review section
for an explanation of the Expanded basis. Operational cash flow generated is
reconciled to the cash flow statements as follows: cash received from
investments £116m less Company (including its immediate subsidiaries TRIG UK
and TRIG UK I) expenses £23m plus project-level debt repayments £105m

2.     The Company, TRIG UK, TRIG UK I and its portfolio of investments
are known as the "Group"

3.     Portfolio discount rate less ongoing charges, adjusted for share
price discount to NAV on the 31 July 2025 of 21%

4.     The 2025 target represents a 9% dividend yield when referenced to
the share price of 85p per share at 31 July 2025. The 2025 target should not
be seen as an indication of the Company's expected results or returns

Investment Report

Cash flows

The Group's operational cash flow in the first half of 2025 was £199m, which
represents 2.2 times cover of the £92m cash dividend paid to shareholders.
Operational cash flows were used to repay £105m portfolio-level debt. After
operating, finance costs and working capital, the Group's distributable cash
flow of £93m (H1 2024: £100m) covered the cash dividend 1.0 times (H1 2024:
1.1 times).

The Group continues to benefit from limited cash flow exposure to interest
rates, due to fixed interest rate borrowings and limited refinancing risk
across the project companies. Portfolio-level debt, which represents c.90% of
debt across the Group, has an average fixed interest rate of 3.5% and
amortises c. £190m per annum with no refinancing risk.

Valuation

The Company's Net Asset Value as at 30 June 2025 was 108.2p per share (31
December 2024: 115.9p per share) and the Company's portfolio valuation was
£2,896m. IFRS earnings for the period were -4.7p per share (H1 2024: -0.6p
per share), reflecting the movement in valuation.

InfraRed and RES continue to actively manage TRIG's portfolio to reduce the
impact of the macro environment and external factors on the portfolio
valuation, adding c.£20m in the period to portfolio valuation including:

·      Technical enhancements relating to turbine hardware and software
upgrades on several projects across the portfolio; and

·      Fixing of revenues for selected projects within the portfolio at
favourable power prices.

Macroeconomic movements that adversely impacted the portfolio valuation, and
therefore earnings, by 6.3p per share were:

·      Reductions in power price forecasts, which reduced the NAV by
5.1p per share; and

·      Increases in European discount rates by 30 basis points, which
reduced the NAV by 1.2p per share. The portfolio's weighted average discount
rate increased to 8.8% as at 30 June 2025.

As at 30 June 2025, the implied equity risk premium above long-term government
benchmark yields was 5.0% (31 December 2024: 4.7%).

Other factors impacting the portfolio valuation, which principally related to
lower than forecast generation as a result of low UK wind speeds, reduced the
NAV by 2.6p per share.

Greater detail on TRIG's approach to power price forecasting is set out in the
Revenue profile section on page 9 of TRIG's 2025 Interim Report and on the
valuation movements during the six months to 30 June 2025 in the Valuation of
the Portfolio section on page 18 of TRIG's 2025 Interim Report.

Capital allocation

TRIG's share price has improved significantly since publication of the
Company's 2024 Annual results, but there is recognition from both the Board
and Managers that more needs to be done to address the 21% discount as at 31
July 2025(1).

Responsible balance sheet management and disciplined capital allocation are
central to the Board's strategy. In March 2025, €100m of proceeds were
received from partial sale of a stake in the Gode offshore wind farm at a
premium to NAV. The Managers continue to progress raising a further £300m
capital through debt financings and further divestments to progress the
Board's capital allocation priorities.

As detailed above and at the Company's Capital Markets Seminar on 28 May 2025,
the Investment Manager is in the process of arranging a longer-term, debt
private placement of approximately £150m, included with the £300m of capital
to be raised. NAB and NatWest have been appointed as joint placement agents
for the Company. Such debt is expected to be drawn in tranches with a series
of maturity dates to mirror an amortisation profile. It is expected that this
issuance will close in H2 2025.

The Board has progressed its capital allocation priorities in the period:

·      Share buybacks: Share buybacks have delivered 0.6p of NAV per
share accretion in the six months to 30 June 2025 from the repurchase of 51m
shares for £40m. Buybacks at a significant discount to NAV are accretive to
NAV per share and distributable cash flow per share. The cadence of buying
back the Company's own shares is managed such that more shares are repurchased
when the discount to NAV is greater.

·      Durable balance sheet: The majority of TRIG's debt is long-term,
fixed-rate, amortising project-level debt. The average interest rate on this
debt is 3.5%. Project-level debt was reduced by £105m in the period and was
£1.8bn as at at 30 June 2025, which represents 38% of enterprise value.
TRIG's exposure to floating rate debt and refinancing risk is limited to the
Company's Revolving Credit Facility ("RCF"). Borrowings under the RCF were
£301m at 30 June 2025. The RCF was refinanced on 5 February 2025 and has a
maturity of 31 March 2028. The interest rate on the RCF is currently c.5.0%,
which is drawn in both Sterling and Euros.

·      Construction spend: £39m of construction spend was incurred
during the period relating to the Ryton battery storage project and the
commencement of repowering Cuxac onshore wind farm. Development and
construction stage investments are a strategic priority of the Company to
enhance returns and progress technology diversification. New investment
decisions are benchmarked against alternative uses of capital, particularly
share buybacks.

As at 30 June 2025, the Company had outstanding investment commitments of
£94m, principally relating to the construction of UK battery storage
projects, the repowering of the Cuxac onshore windfarm in France and the
financing of the Fig Power platform.

                     H2 2025  2026  2027  Total
 Outstanding         29       29    36    94

commitments (£m)

 

Investment highlights

TRIG's portfolio balance is carefully managed to position the Company across
different geographies, technologies, revenue types and project stages. This
approach manages risk, and means that shareholders benefit from access to a
large, diversified portfolio.

A key route to creating value for shareholders is the delivery of projects
through development and construction stages into operations. For TRIG, this
means leveraging the collective experience of its Managers, InfraRed and RES,
to support the effective management of risk and optimisation of returns.

TRIG has a 1GW development pipeline of projects that could all start
construction by 2030. The process of bringing these projects from development
into construction continues to progress well:

Construction of the Ryton battery storage project in the UK remains on time
and on budget with all batteries having arrived on site and installation
having begun ahead of energisation towards the end of the year.

The final investment decision for the repowering of the Cuxac onshore wind
farm in France was approved, which will see the site benefit from a new
20-year inflation-linked Feed-in-Tariff and its generation capacity doubled
from 12MW to 25MW.

The Company's 1GW pipeline includes over 650MW of battery storage development
projects. Battery storage assets are critical to the energy transition and are
particularly complementary within a portfolio of renewables generation assets,
which can absorb the higher volatility commensurate with the higher returns
battery storage investment offers. Recent market transactions have been
supportive of sector valuations.

TRIG retains the option to build or sell assets in the development pipeline,
with investment decisions being appraised against alternative uses of capital.
Opportunities to sell developed projects to third parties and crystallise
development profit for TRIG are anticipated. The Managers will continue to
actively monitor and assess these opportunities as they arise.

Revenue profile

TRIG benefits from diversification across several power markets, with projects
in Great Britain, the Single Electricity Market (Northern Ireland), the main
continental European power market (France and Germany), the Nordic market
(Sweden) and the Iberian market (Spain).

TRIG's portfolio cash revenues have substantial medium-term protection from
movements in power prices as the portfolio receives a high proportion of its
revenue from government subsidies such as Feed-in Tariffs ("FiTs"), Contracts
for Difference ("CfDs"), Renewable Obligation Certificates ("ROCs") or from
selling electricity generated via power purchase agreements ("PPAs") with
fixed prices or from other hedges, together referred to as fixed revenues.

The Managers take an active approach to revenue management, during the period
fixes were applied to generation across the UK, France, Spain and Sweden. The
management team continues to progress securing a 10-year corporate power
purchase agreement for c. 2% of TRIG's annual generation, at a price
consistent with TRIG's long term power price forecast, which is expected to be
signed in Q3 2025.

70% of projected revenues over the next 10 years are fixed price per MWh
generated. 58% of projected revenues over the next 10 years are directly
linked to inflation through government-backed revenue contracts.

Power price forecasting

TRIG uses the average of three power price forecasters' projections adjusted
for the lower price that a variable renewables project captures compared to a
baseload generator (the resulting discount is known as cannibalisation). This
means that TRIG captures the breadth of views on the evolution of the
electricity market and supply-demand dynamics. This is important as these
views may diverge over time.

Of particular note in this period, the lowest of the three forecasters has
materially reduced their power price projections principally from reduced
expected growth in electricity demand. Of the other two forecasters, one
broadly maintained price levels and the other slightly increased their
projections overall in Q2, thus increasing the spread of power price
forecasts. The potential impact on projected returns from the spread of
forecasts around the average adopted by TRIG has increased from (-0.8% to
+0.9%) at December 2024 to (-1.4% to +1.0%) at June 2025 for the portfolio as
a whole; and increased from (-1.5% to +1.5%) at December 2024 to (-2.2% to
+1.6%) at June 2025 for the GB wind portfolio.

The additional caution introduced by the lowest forecaster during Q2 2025 is
estimated to have negatively impacted the portfolio valuation by c.£60m or
c.2.5p per share. Had the lowest forecaster moved their Q2 forecasts in line
with the other two forecasters, the overall valuation impact from power prices
would have been around half of the £124.2m adverse impact which resulted from
taking an average of the three forecasters. The vast majority of the impact
was due to significant reductions in the UK and Swedish power price forwards
and forecasts.

Competitive forces can result in assets trading on the higher curves when
there is healthy buyer competition. TRIG's current approach of incorporating a
range of market views through three power price forecasters and a high level
of assumed cannibalisation is not adopted by all renewables investment
companies, which may lead to differences in impact on portfolio valuations.
Should either of the two higher power price forecasts come to pass, this could
present a material upside to TRIG's projected returns as demonstrated by the
sensitivities provided in the Valuation of the Portfolio section of TRIG's
2025 Interim Report.

In addition, TRIG's approach of using a more cautious average of the main
forecasters means that our cash flow forecasting is undertaken on a more
conservative basis resulting in a more sustainable dividend policy. Market
participants that use one or two power price forecasts typically do not use
the lowest of the three forecasters.

The chart on page 10 of TRIG's 2025 Interim Report sets out TRIG's power price
forecasts by region and technology, net of cannibalisation and before PPA
discounts.

Foreign exchange

The Group(2) receives a portion of its revenues in Euros. 40% of the portfolio
by value is invested in Euro-denominated assets(23). The Group employs foreign
exchange hedging to significantly mitigate the cash flow and valuation
exposure to this risk, as expanded upon in the Valuation of the Portfolio
section of TRIG's 2025 Interim Report.

The Investment Manager implements the Company's foreign exchange hedging
policy through Sterling-Euro swaps for up to four years forward. As a result
of the interest rate differential between UK and the Eurozone, forward foreign
exchange contracts over the next four years have been struck at levels better,
in Sterling terms, compared to the foreign exchange rate as at 30 June 2025
and used in the portfolio valuation.

Principal risks and uncertainties

TRIG's principal risks for H2 2025, approach to risk management and
counterparty exposures are unchanged to those set out in the Risk and Risk
Management section of the 2024 Annual Report on page 56. TRIG continues to
have four enduring principal risks with a high residual impact which are:
political / regulatory risk, power prices; production performance and
counterparty credit. Below is a commentary on the key movements in these risks
in the period.

In a macroeconomic environment where inflation and interest rates have been
elevated, the correlation of portfolio returns to inflation and the Company's
approach to long-term, fixed-rate and amortising structural debt are key risk
mitigants.

Political / regulatory

The risk of government or regulatory support for renewables changing
adversely.

The energy transition is recognised as being of critical importance across
most of the European political spectrum whether for reasons of energy security
or decarbonisation. However, changes to existing policies create risks in
relation to renewables rollout rates, electrification and assumptions for
existing projects. This may impact power price forecasts and the financing of
renewables build out.

In the UK, the Government's energy policy priorities include changes to the
next Contract for Difference auction round (AR7), such as extending the
contract term to 20 years and making repowering projects eligible to
participate. These measures are designed to promote new investment and
accelerate the buildout of renewables, and may provide TRIG with a route to
new government-backed, inflation-linked revenues as the generation fleet in GB
matures.

It was welcome that post period end that the UK Government announced it would
not be upheaving the electricity market through a move to zonal pricing. There
is also a strong recognition of the importance of reforms to improve the
effectiveness of the UK's electricity markets through 'Reformed National
Pricing' designed to provide a transparent and predictable upfront signal
ahead of the point of investment decision about the relative system value of
investing in different locations. This will be centered around a Strategic
Spatial Energy Plan ("SSEP") designed to support network investment, and
assess the optimal locations, quantities and types of infrastructure required
to transition to a cleaner, secure energy system.

Whilst aligning locational investment signals to reflect the SSEP is intended
to reduce risks for new investment, a shift towards a more centrally planned
approach to system design carries inherent political and regulatory risks
during implementation. The Managers are encouraging the UK Government to
maintain an open dialogue with investors to manage these risks and, in
particular, to ensure that appropriate transitional arrangements are put in
place to protect operational projects from changes to transmission and
distribution use of system charges that would have been unforeseeable at the
point of investment decision.

'Windfall' taxes and levies on generators were introduced in 2022 on the back
of particularly elevated power prices to help fund financial support to ease
the cost of electricity to end users. In the UK, the Electricity Generator
Levy is in place until 2028. All levies in the EU have now expired. There
remains a risk that further intervention may result if electricity prices were
to increase significantly again.

Power prices

The risk of electricity prices falling or not increasing as expected.

Following a rally in the first three months of 2025, European near-term power
prices trended lower driven by a reduction in commodity prices following a
mild winter and spring, high hydroelectricity levels in the Nordics and
Iberia, expected flexibility in EU gas storage requirements and weak demand
from Asian markets for liquified natural gas ("LNG"). The impact of gas price
weakness on power was partially offset in the UK following confirmation of the
linking of the EU and UK Emissions Trading Schemes ("ETS") providing support
to UK carbon prices. European gas and power price action is expected to remain
volatile in the near-term, due to uncertainty over the scope, timing and
duration of US reciprocal tariffs, and continuing tensions in the Middle East.

There remains an inherent risk of adverse movements in wholesale electricity
prices reducing revenues in the medium to long term, which may result from
higher than expected renewables build-out, lower than expected natural gas and
carbon prices, and lower than expected electricity demand amongst other
factors.

These risks are partially mitigated through TRIG's power price management and
portfolio diversification strategies. This includes negotiating fixed-price
PPAs or other hedges which, taken together with subsidies, results in 70% of
TRIG's revenues (per unit of electricity generated) being fixed over the next
10 years.

The valuation of the Company's portfolio considered the market derived forward
prices in the shorter term in conjunction with a blend of cannibalised(4)
power price forecast curves produced by three independent forecasters.

Production performance

The risk that portfolio electricity production falls short of expectations.

Weather resource was mixed over the period, with wind levels experienced by
TRIG's UK, French and German wind projects being materially below the
long-term average. Wind levels in Sweden and solar irradiation in the UK were
above average. This variation between regions demonstrates the importance of
geographic and technology diversification in a balanced portfolio.

The Beatrice offshore wind project required repairs to the OFTO-owned cables,
which were promptly completed post period end, with limited downtime due to
the outage occurring in the summer months and TRIG's use of contingent
business interruption insurance. TRIG's approach to low single asset
concentration limits the impact of issues at any one project on the portfolio
as a whole.

Counterparty credit

The risk of failure of a major supplier

TRIG's portfolio is weighted towards wind-power assets, a sector that is
dominated by a small number of high quality equipment manufacturers.
Counterparty failure could result in equipment not being supplied to
construction projects or operational and maintenance services not being
provided to commissioned projects or being disrupted.

Construction activities are limited by TRIG's Investment Policy cap of 25% of
portfolio value and were 7% of portfolio value at 30 June 2025 (30 June 2024:
5%).

The increase in independent operations and maintenance service suppliers
reduces dependence on the original equipment manufacturers, particularly with
respect to onshore technologies.

Market developments

UK

In July 2025, the UK Government issued an update on its Review of Electricity
Market Arrangements ("REMA"). The update dismissed the introduction of zonal
pricing, which would have split the wholesale electricity market in Great
Britain into several price zones, in favour of Reformed National Pricing
alongside greater strategic and planning co-ordination.

Reformed National Pricing is intended to provide upfront predictable signals
ahead of the point of investment decision about the relative value of
investing in different locations. These reforms will be centered around a
Strategic Spatial Energy Plan ("SSEP") which will adopt a whole system
approach to planning and identify the optimal locations, quantities and types
of infrastructure needed to transition to a cleaner energy system.

This will include a review of the annual charges used to recover the costs of
maintaining and operating the transmission network (Transmission Network Use
of System, "TNUoS" charges), and the one off connection charges paid by new
generators to connect to the network are anticipated, and will be aligned with
the needs identified in the SSEP. Amongst other things, the review will
consider the balance between connection charges and TNUoS, with a view to
deepening connection charges, and a review of the charges levied on storage
and demand. The Managers will continue to monitor and engage with government
in this process.

The UK Government will publish details on delivery timelines and key
activities for implementing Reformed National Pricing later this year, along
with a separate consultation on proposals to make changes to the Capacity
Market and a call for evidence to explore how the Corporate Power Purchase
Agreement ("PPA") market can evolve.

EU

Discussion of electricity market reform in the EU remains ongoing, in
particular a review of alternative bidding zone configurations across Europe.
Currently, bidding zones in Europe are mostly defined by national borders,
however the European electricity target model requires bidding zones to be
defined based on network congestion. As in the GB electricity market, changes
to electricity price areas could adversely impact renewable generation
merchant revenues located in regions with higher proportions of supply
relative to demand.

Two proposals on the future configuration of bidding zones in Europe were
published in April 2025. No changes are recommended to the existing
configuration of the Nordic market. However, the proposals recommended
splitting Germany and Luxembourg into five zones. Germany's four Transmission
System Operators (TSOs)have questioned the suitability of the study, citing
challenges that a bidding zone split could reduce futures market liquidity,
increase balancing costs, increase revenue uncertainty for renewables projects
located in the north of the country, and increase electricity costs in
industrial regions.

The countries have six months to decide whether to accept or reject the TSO's
recommendation. If they fail to reach a unanimous decision, the European
Commission has a further six months to decide.

The overall implications of this review are not expected to be significant for
the TRIG portfolio if enacted. TRIG's approach to portfolio diversification
across markets, technologies, and revenue contract type (balance of
government-backed contracts and merchant exposure) help to reduce the impact
of market reform

at a portfolio level.

1.     TRIG's share price of 85p per share as at 31 July 2025 represents a
21% discount to the 30 June 2025 Net Asset Value per share of 108.2p

2.     The Company, TRIG UK, TRIG UK I and its portfolio of investments
are known as the "Group"

3.     Including Sweden which receives electricity revenues from Nord Pool
in Euros

4.   Cannibalisation describes the effect that renewables (an intermittent
generator) can have on the overall power prices, whereby the marginal cost of
generation, which in turn drives the power prices, is lower than the average
which would be expected of a continuous base load generator as a result of the
additional supply when renewables are generating. Rates differ over time and
between markets but all are affected

Operations Report

Operational performance

 Technology       Region      Net capacity (MW)  H1 2025 Electricity   Performance vs Budget

                                                 Production (GWh)(*)
 Onshore Wind     UK          548                627                   -16%
                  France      259                223                   -20%
                  Sweden      401                572                   7%
 Offshore Wind    GB          376                648                   -12%
                  Germany     232                256                   -21%
 Solar            GB, France  156                91                    5%
                  Spain       363                321                   -6%
 Total Portfolio              2,335              2,738                 -10.3%

 

*           Balance does not cast due to rounding

Underlying portfolio generation during the period was principally impacted by
low wind speeds throughout the period, particularly in the UK, with low wind
resource also in France and Germany.

Onshore wind

UK

Performance in the region was impacted by poor wind resource and some grid
outages. Four sites in the region experienced a low level of uncompensated
grid outages to enable the grid operator to perform network upgrades, reducing
generation by 5.5GWh for the half year. Insurance proceeds have been received
for a further outage which was caused by a grid fault, with the final payment
expected in Q3 2025.

The Operations Manager continues to actively manage technical and commercial
arrangements within the region, performing a range of contract tenders,
progressing strategic spares initiatives and evaluating opportunities and
addressing challenges as they arise in order to preserve asset integrity.

Operational enhancements have been successfully deployed and validated at
several sites, with new trials also commenced at multiple additional sites.

France

Low wind resource in the region was the predominant driver for an adverse
production variance of 20% in the period.

Development activities are ongoing ahead of the repowering of older sites in
the south of France, as described in the Development & Construction
section on page 14 of TRIG's 2025 Interim Report.

A legal challenge relating to environmental authorisation continues at Vannier
onshore wind farm. All necessary environmental studies have been completed and
submitted to the local authority for review. It is expected the wind farm will
be permitted to resume generation before the end of 2025. Commercial
protections are in place.

Sweden

Sweden experienced good wind resource in the period, although this was mostly
offset by large volumes of economic curtailment - when it is not economically
attractive to continue operating - reflecting lower power prices in the region
linked to high hydroelectricity production levels.

Site availability has increased across the region, with the recently
commissioned Ranasjö, Salsjö and Grönhult projects all achieving good
contractual availability during the second half of the period.

Jädraås continues to experience grid constraints due to wider grid
reinforcement works, which are expected to be completed by Q3 2025.

Offshore wind

Good asset performance across the UK and Germany but adverse variance in
generation of 12% and 21% respectively was driven by low wind resource across
the regions.

East Anglia One anticipates receiving the final payment from insurers in Q3
2025, following the OFTO-owned export cable faults in H1 2024. The financial
investors of Hornsea One continue to pursue an insurance claim in relation to
the export cable outage on that project.

A fault on one of the two OFTO-owned Beatrice export cables occurring in the
period was repaired in July, prior to which output had been re-directed via
the offshore transmission infrastructure owner's remaining cable to minimise
losses. Commercial protections are in place.

Summer servicing of the offshore projects has progressed well and has made
good use of the more benign weather conditions for main component replacements
where required, which are generally performed under warranty by the original
equipment manufacturer.

Solar

Spain

Asset level performance across the five projects in Spain remains very good
but generation was impacted by low solar irradiance.

New five year operations and maintenance contracts were signed with RES for
the Cadiz projects following a competitive tender process. The sites also
achieved their Final Acceptance Certificates (FAC), after a thorough end of
warranty process to ensure that any required remedial works were completed by
the construction contractor.

GB

Good irradiation resulted in the GB solar generation being above budget.

Operations and maintenance contracts were extended in the period for a further
five years.

Following a successful warranty claim, a module procurement agreement has been
signed to replace all modules at one of the smaller, older sites, with works
to be completed in H2 2025. This operation is akin to a repowering process,
preserving long-term asset value and performance.

France

Module replacements have progressed at two sites - with all module
replacements complete at one site and the second site expected to complete in
Q3 2025. Having installed newer, larger, modules the sites are expected to see
a cumulative increase in export capacity of 9%, underpinning long term
performance of the sites, and in turn adding to asset value.

Development & construction

Construction of the 78MW two-hour Ryton battery storage project near Newcastle
is progressing on schedule. All batteries have been delivered to site in the
period, installed and electrically connected, ahead of energisation towards
the end of the year.

The next three consented battery projects in TRIG's 1GW development pipeline
are Spennymoor, Templeton and Drakelow. These are each of at least two hour
duration, and currently undergoing pre-construction activity including site
design, procurement and planning condition discharge.

A construction contract has been signed for the repowering of Cuxac onshore
wind farm in France. The repowered project will have an installed capacity of
25MW, more than double that of the existing site. Decommissioning of the
existing project is set to commence in Q3 2025, with commercial operations for
the repowered site targeted for Q3 2026.

Investment decisions in relation to development and construction activities
are benchmarked against share buybacks as an alternative use of capital,
taking into account the relative risk-reward, as part of the project appraisal
process. This is to ensure that capital is allocated appropriately.

Health, safety and environment

Delivering high quality of health, safety and environmental ("HSE") standards
remains the top priority across all portfolio activities. The Operations
Manager plays a key role in maintaining and enhancing these standards,
engaging closely with asset managers of each project to ensure best practice
is shared through collaboration. Active measures such as safety drills,
scenario-based exercises and targeted training are promoted across all levels
to reinforce the core safety frameworks in place.

During the first half of 2025, there were two Lost Time Accidents during the
period, the same number as for H1 2024. There is an ongoing emphasis on
positive leading indicators, including the frequency of independent and
internal safety audits, assurance reviews, hazard identifications, and safety
walks. Such leading indicators help to reduce the risk of circumstances
arising in the first place that would enable an accident to happen, as opposed
to lagging indicators.

TRIG continues to host biannual portfolio HSE coordination groups to
strengthen relationships among asset managers, facilitate information sharing,
and address emerging issues within the portfolio and the broader industry.

Highlights of proactive measures taken in 2025 to date include:

Continued visits by project company directors across portfolio sites. These
engagements serve as an opportunity to reinforce health and safety priorities
alongside broader operational themes on site whilst also maintaining site
familiarisation and working environments.

RES' Global Safety Focus Event took place in June 2025, bringing together
4,500 colleagues from 24 countries. This year's theme was 'The Butterfly
Effect' which focusses on how small changes in preparation, culture or
behaviour can have profound consequences for operational health and safety.

An HSE assurance process focused on desk-based management systems and
site-based inspections. Six projects were visited representing 7% of the
portfolio. The assurance process is built upon core ISO standards and is
overseen by the Operations Manager.

Enhancements

The Managers of The Renewables Infrastructure Group are dedicated to enhancing
portfolio performance, shareholder returns and stakeholder value through both
commercial and technical initiatives. These initiatives are a key value driver
for TRIG. In particular, technical enhancements relating to turbine hardware
and software on several projects across the portfolio added £19m to portfolio
value in the period.

Examples of enhancement initiatives progressed during H1 2025 include:

Increasing revenues:

Blade upgrades to reduce drag, increase lift and improve generation:

·      Further deployment of aerodynamic blade hardware enhancements at
nine sites in the UK and French regions. Aerodynamic upgrades have now been
installed across 91MW of capacity. These upgrades include winglet tips, gurney
flaps and vortex generators all of which help to better manage air flow and
enhance performance by extracting additional energy yield. Deployment and
validation will be ongoing through H2 2025.

Wind turbine software enhancements:

·      A suite of parameter changes (associated with the blade upgrades)
to the turbine controller that uses high frequency data to optimize
aerodynamics has been deployed at two sites. The analysis of data works
alongside the blade enhancements to optimise the way the turbines pitch
towards the wind and how each blade is yawed to extract the highest energy
yield. Deployment is underway at a further eight sites.

·      Full deployment of the wake steering and dynamic yaw programme at
Altahullion onshore wind farm in Northern Ireland, with a validated yield
uplift of 0.7%. This enhancement is an innovative retrofitted upgrade to
increase production and reduce turbine loads. Further deployment is underway
at Hill of Towie onshore wind farm in Scotland, representing 48MW of capacity
across 21 turbines.

·      Continued roll-out of offshore wind power curve and power boost
upgrades that optimise the pitch of the blades at wind speeds below rated
power at both Beatrice and Hornsea One. A validation programme is ongoing.

Additional revenue streams:

·      Four of the Company's southern French wind farms are providing
grid-balancing ancillary services in the French balancing market. These sites
are also identified to participate in further ancillary services markets, all
of which offer an additional revenue stream for the remaining operating life
of these projects.

Optimising operations:

·      To support the recently renewed operations and maintenance
contracts at Altahullion, Lough Hill and Lendrum's Bridge onshore wind farms,
a comprehensive spares strategy has been developed and approved. This strategy
will limit downtime and mitigate ongoing supply chain challenges, particularly
prevalent in Northern Ireland, to improve availability. Following a tender
process in June, inventory stocking has begun. Spares will be sourced from
three suppliers based on both price and lead time.

·      GB Solar inverter software optimisation opportunities are being
trialled across three GB solar sites. These enhancements control power output
on site to reduce overheating, and can result in a 20% increase in yield on
hot weather days, and a potential 50% reduction in inverter replacement rates
by avoiding degradation.

Directors' Statement of Responsibilities

We confirm that to the best of our knowledge:

1.   The condensed set of financial statements has been prepared in
accordance with IAS 34 Interim Financial Reporting; and

2.   The Chairman's Statement and the Managers' Report meets the
requirements of an Interim Managers' Report, and includes a fair review of the
information required by

a.   DTR 4.2.7R, being an indication of important events during the first
six months and description of principal risks and uncertainties for the
remaining six months of the year; and

b.   DTR 4.2.8R, being the disclosure of related parties' transactions and
changes therein.

By order of the Board

Richard Morse

Chair

7 August 2025

Publication of documentation

The above information is an extract from TRIG's 2025 Interim Report. The
Interim Report has been submitted to the National Storage Mechanism and will
shortly be available for inspection
at: https://data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://eur02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fdata.fca.org.uk%2F%23%2Fnsm%2Fnationalstoragemechanism&data=02%7C01%7Cphilippe.vuillaume%40partnersgroup.com%7C9921b2a94ca84f80abd008d83e0034f3%7C0bcc0075229d4973b0c30ef63eb9c51f%7C0%7C0%7C637327517903944751&sdata=7xdHtTc7SAh63in9nIZT0csRmMwIWJIIjmp6yNOLWDo%3D&reserved=0)
. It can also be obtained from the Company Secretary or from the Reports &
Publications section of the Company's website, at https://www.trig-ltd.com/
(https://www.trig-ltd.com/) .

 

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