REG - Renew Infra Grp Ld - Battery Storage Investment

Renewables InfrastructureAnnouncement

08/09/2022 07:00

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RNS Number : 6904Y  Renewables Infrastructure Grp (The)  08 September 2022

 

 

8 September 2022

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

Battery storage investment

The Company has exchanged contracts to acquire the right to develop three
battery storage sites in the North of England. Two of the projects, which when
built will total c.165MW with a two-hour duration, are scheduled for grid
connection and commencement of operations in 2024 and 2025. The third site,
which has a capacity for c.85MW also with a two-hour duration, will be built
later in line with its grid connection date, which is in 2029, although it may
be possible to bring this date forward.

This is a key milestone for the Company and builds on the strategy laid out at
the Capital Markets Seminar held in April 2022 to complement the renewable
generation assets in the portfolio with flexible capacity. Utility scale
batteries such as these provide grid supporting services and trade in the
wholesale power market, with both activities helping to stabilise the
electricity system.

Flexible capacity projects diversify TRIG's portfolio as their revenues are
expected to have a low correlation to the absolute level of wholesale power
prices received by renewables generators. In order to provide greater revenue
optionality, the battery storage is being configured as a two-hour energy
storage system, which is at the longer end of most existing installations.
This configuration expands the project revenue stack by extending the trading
options available in the wholesale market, which is deeper than the ancillary
services market.

The sites, which have been developed by and acquired from Aura Power
Developments Limited, each have land rights, planning permission and grid
connection agreements secured. RES is being contracted to progress the
development of the projects through the procuring of equipment and
construction. The Managers (InfraRed and RES) are mindful of the
sustainability considerations in relation to battery storage equipment,
particularly in relation to the supply-chain, which will be reflected in the
procurement framework. Both Managers have significant experience in the
flexible capacity market extending back over a decade.

Once the first two projects are built (expected in 2025) the investment will
represent approximately 4% of the portfolio, by value.

Richard Crawford, of InfraRed Capital Partners, said:

"Greater deployment of flexible capacity and renewable generation are crucial
components in addressing energy security, decarbonisation and energy
affordability. For TRIG, the addition of battery storage into an already
diversified generation portfolio further reduces revenue variability, and
draws on the deep expertise of InfraRed and RES of investing in and delivering
development-stage projects."

Enquiries

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

Richard Crawford

Phil George

Minesh Shah

Mohammed Zaheer

 

Maitland/AMO
+44 (0) 20 7379 5151

Rhys Jones

Charles Withey

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
2.4GW; enough renewable power for 1.7 million homes and to avoid over 2
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

 

The Investment Manager to HICL is InfraRed Capital Partners Limited
("InfraRed") which has successfully invested in infrastructure projects since
1997. InfraRed is a leading international investment manager, operating
worldwide from offices in London, New York, Seoul and Sydney and managing
equity capital in multiple private and listed funds, primarily for
institutional investors across the globe. InfraRed is authorised and regulated
by the Financial Conduct Authority.

 

The infrastructure investment team at InfraRed consists of over 100 investment
professionals, all with an infrastructure investment background and a broad
range of relevant skills, including private equity, structured finance,
construction, renewable energy and facilities management.

 

InfraRed implements best-in-class practices to underpin asset management and
investment decisions, promotes ethical behaviour and has established community
engagement initiatives to support good causes in the wider community. InfraRed
is a signatory of the Principles of Responsible Investment.

Further details can be found on InfraRed's website www.ircp.com
(http://www.ircp.com/) .

 

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 22GW in capacity. RES supports over 9.5GW of operational assets worldwide
for a large client base. Headquartered in Hertfordshire, UK, RES is active in
11 countries and has over 3,000 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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