REG - Renew Infra Grp Ld - Net Asset Value update – Q1 2026

Renewables InfrastructureAnnouncement

01/05/2026 07:01

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RNS Number : 6935C  Renewables Infrastructure Grp (The)  01 May 2026

 

 

1 May 2026

The Renewables Infrastructure Group Limited

The Renewables Infrastructure Group ("TRIG" or "the Company") is a
London-listed renewable energy investment company. TRIG creates shareholder
value through a resilient dividend and long-term capital growth, underpinned
by a diversified portfolio of renewable energy infrastructure that is actively
managed by specialist investment and operations managers.

Net Asset Value update - Q1 2026

TRIG announces an estimated unaudited Net Asset Value as at 31 March 2026 of
104.1 pence per share, an increase of +0.1 pence per share in the quarter
principally due to:

 ·             Good portfolio performance particularly across TRIG's UK and German wind
               projects;
 ·             Actual inflation is running at a rate higher than was assumed in the valuation
               as at 31 December 2025;
 ·             Power price fixes at elevated levels including those placed following the
               escalation of the conflict in the Middle East; and
 ·             The benefit to NAV per share delivered by share buybacks; offset by
 ·             Lower medium-term revenue forecasts, particularly associated with removal of
               the Carbon Price Support in the UK.

The Board reaffirms the dividend target for FY 2026 at 7.55p per share(1).

Gross cash cover for 2026 is expected to exceed 2.0x, calculated based on
forecast operational cash flows before the c. £170m repayment of amortising
project-level debt. Net dividend cover for 2026 is expected to be c. 1.1x.

Q1 2026 movements in Net Asset Value per share

The key drivers of the movement in NAV per share over the quarter are
summarised in the table below:

                                                                  Net Asset Value  Positive Movements  Negative Movements

                                                                  (p / share)      (p / share)         (p / share)
 NAV per share at 31 December 2025                                104.0
 Q1 2026 performance, operational updates and value enhancements                   +0.4
 Changes to revenue forecasts                                                                          -0.6
 Share buybacks                                                                    +0.3
 NAV per share at 31 March 20262                                  104.1

Q1 2026 performance

The portfolio's financial performance was ahead of budget for the quarter.

 ·             Revenues were ahead of budget with good electricity generation in regions
               where TRIG captures higher power prices. In particular, UK wind generation was
               5% above budget driven by good wind resource. Generation and weather resource
               levels across mainland Europe were mixed with limited net impact on revenues;
 ·             Power prices in Sweden were elevated at the start of 2026 due to low levels of
               hydrological balances and the resulting lower flexibility in the electricity
               generation system, which was then partly offset by lower generation;
 ·             Power prices were below budget in Spain due to high hydroelectricity levels
               and generation in the region.

In addition, power prices in the UK increased from February to March 2026 as a
result of the conflict escalation in the Middle East. This increased TRIG's UK
revenues where projects received the prevailing wholesale power price. The
impact of the conflict has been less significant for Spain and Sweden given
their relatively lower dependence on fossil fuels.

Actual inflation is running at a higher rate than levels assumed in the
valuation as at 31 December 2025. Over half of TRIG's revenues over the next
10 years are directly linked to inflation indices.

The Sterling-Euro foreign exchange rate remained broadly unchanged in the
quarter resulting in minimal impact on TRIG's portfolio or FX hedge
valuations.

Value enhancements

TRIG's management team continues to progress value enhancement activities
having added £32m to the portfolio valuation in 2025. A further £3m was
added in the quarter, including from:

 ·             Power price hedges relating to 560GWh of generation for a range of tenors out
               to 36 months. This included negotiating a new offtake contract with Tem Energy
               for the Neilston onshore windfarm in the UK, as well as new arrangements for
               two of TRIG's offshore windfarms. The Managers continue to progress
               discussions to secure further long-term corporate offtake arrangements, which
               remain an important limb of TRIG's strategy particularly in the context of the
               move in power price forecasts noted below.
 ·             The 78MW two-hour Ryton battery project is in the final stages of construction
               with grid energisation expected towards the end of Q2 2026. Construction of
               the 25MW Cuxac onshore wind repowering project and the 100MW two-hour
               Spennymoor battery project both remain on schedule and on budget ahead of
               energisation in H2 2026 and 2027, respectively.

The total increase in portfolio valuation resulting from value enhancement
activities in 2025 and 2026 year to date to £35m. This marks continued strong
progress towards the target to add £70m in total to portfolio value over
the same two years.

UK energy policy changes

On 21 April 2026, the UK Government made a series of energy policy
announcements including the potential extension of Contracts for Difference
("CfDs") to operational renewables assets, providing them with access to
long-term, fixed-price, inflation-linked, government-backed revenue contracts.
The stated objective of this policy is to reduce the volatility of electricity
prices for consumers. CfDs for operational assets would also be expected to
improve revenue stability for generators. The extension of CfDs to operational
projects is a policy that the Managers have been directly engaging with
Government on for some time, and is aligned with TRIG's strategy to secure a
high proportion of fixed-price revenues to create value for shareholders.

Debt issuance

During the quarter, the Company issued £200m private placement debt (the
"Notes"). The Notes extend the Company's debt maturity profile by converting
the equivalent drawing on the RCF into a longer, amortising tenor, with a
weighted average fixed interest rate of 5.23%. The Board and Managers continue
to maintain a conservative approach to balance sheet management. TRIG's cash
flows have low interest rate risk and low refinancing risk with c. 90% of debt
being fixed interest rate and amortising within TRIG's current fixed price
revenue forecast profile.

Changes to revenue forecasts

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 uses the breadth of views on the evolution of the electricity
market and supply-demand dynamics. This is important as forecasters' views may
diverge.

Overall, TRIG's power price forecasts have reduced in the quarter, reflecting
higher prices in the short term and lower prices in the medium term:

 

 ·             Power price forwards for 2026 and 2027 and near-term power price forecasts are
               higher due to the expected constraint on global gas supply arising from the
               escalation of the conflict in the Middle East.
 ·             Medium term forecasts are lower:
                                                         o  In the UK as a result of:
                                                         § The removal of the Carbon Price Support, the impact of which was -0.3 pence
                                                         per share of the overall movement in NAV. This is less than initial
                                                         expectations as announced on 17 April 2026 following more detailed analysis by
                                                         the power price forecasters used by TRIG, and

                                                         § The expectation of greater renewables deployment and therefore electricity
                                                         supply to the system arising from the upsizing of the UK's Contract for
                                                         Difference Allocation Round 7;
                                                         o  Across European power markets where TRIG has investments as a result of an
                                                         increase in assumed renewables deployment and therefore electricity supply to
                                                         the system and lower growth assumptions for electricity demand.

Discount rates

UK and European discount rates are unchanged from those as at 31 December
2025. There has been significant variability in bond yields over the period as
market expectations relating to the outcome of the escalation of the conflict
in the Middle East and its impact on inflation and interest rates have
evolved. Discount rates continue to be informed by observed transaction
processes in the market. The Company is progressing its own disposal program
with the most advanced process being in relation to a UK offshore windfarm.

The portfolio weighted average discount rate remains at 9.0% representing a
4.8% equity risk premium over the portfolio weighted average reference rate as
at 31 March 2026.

Share buybacks

As at 30 April 2026, £100m of the current £150m share buyback programme has
been deployed in the repurchase of TRIG shares.  During the quarter to 31
March 2026, 19.6m shares were repurchased for aggregate consideration of
£13.2m, delivering NAV accretion of +0.3p per share.

 

Capital Markets Seminar

An update on TRIG's strategy will be provided to institutional investors and
sell-side analysts at the Company's 2026 Capital Markets Seminar on Monday 11
May 2026 at 14:00 UK time (registration from 13:45). The Company's Chair and
its Managers, InfraRed and RES, will highlight TRIG's strategy for shareholder
value creation, review progress made since the 2025 Capital Markets Seminar,
and discuss TRIG's approach to capital allocation in the context of the
current volatile market environment. Those wishing to attend should
email triginfo@ircp.com (mailto:triginfo@ircp.com) .

 1.      Past performance is not a reliable indicator of future results. There can be
         no assurance that targets will be met or that the Company will make any
         distributions, or that investors will receive any return on their capital.
         Capital and income at risk.
 2.      NAV per share at 31 March 2026 presented after unwind of the discount rate,
         company costs and payment of the quarterly interim dividend.

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. TRIG creates
shareholder value through a resilient dividend and long-term capital growth,
underpinned by a diversified portfolio of renewable energy infrastructure that
is actively managed by specialist investment and operations managers.

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. In
2025, the portfolio generated enough renewable electricity to power the
equivalent of 1.6 million homes and to avoid 1.8 million tonnes of carbon
emissions per annum.

Further details can be found on TRIG's website at www.trig-ltd.com
(http://www.trig-ltd.com) .

 

Investment Manager

 

InfraRed is a leading international mid-market infrastructure asset manager.
Over the past 25 years, InfraRed has established itself as a highly successful
developer, particularly in early-stage projects, and an active steward of
essential infrastructure.

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 combines a global reach, operating worldwide from offices in London,
Frankfurt, Madrid, New York, Miami, Sydney and Seoul, with deep sector
expertise from a team of more than 160 people.

InfraRed is part of SLC Management, the institutional alternatives and
traditional asset management business of Sun Life, and benefits from its scale
and global platform.

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

(1) Uses five-year average FX as at 31 December 2025. GBP/USD of 1.2900;
EUR/USD of 1.1125. EUM is USD 13.3bn.

 

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 29GW of renewable energy projects across
the globe.

As a service provider, RES has the skills and experience in asset management,
operations and maintenance (O&M), and spare parts - supporting 45GW of
renewable assets worldwide. 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/) .

 

 

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