REG - Triple Point Energy - £5m debt investment in leading UK solar developer

Triple Point Energy TransitionAnnouncement

03/04/2023 07:00

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RNS Number : 0409V  Triple Point Energy Transition PLC  03 April 2023

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3 April 2023

 

Triple Point Energy Transition plc

("TENT" or the "Company" or, together with its subsidiaries, the "Group")

 

£5 million Development Facility to Leading UK Solar Developer Innova
Renewables

Full Commitment Reached

Materially Higher Returns than Group Target Secured

 

Triple Point Energy Transition plc (ticker: TENT), the infrastructure investor
focussed on the energy transition, is pleased to announce a £5 million debt
investment in Innova Renewables, ("Innova"), part of the Innova group, one of
the UK's leading solar, battery and energy storage systems ("ESS") developers
and operators.

 

The Group has agreed to provide a £5 million development debt facility (the
"Facility") to the development arm of Innova, to help fund its development
pipeline across the UK. The Facility has a 12-month term and delivers
contractual returns to investors that are materially higher than the Group's
target return of 7-8%, reflecting the flexibility of the Group's investment
strategy, which is advantageous in current market conditions.

 

Innova's development pipeline of UK distribution connected renewable projects
is currently over 1.5GW and expected to increase to over 2GW, part of a total
portfolio of over 20GW. This comprises early-stage development of merchant and
private wire solar and ESS assets and works towards Innova's wider ambition
to create 5GW of renewable energy capacity over the next three to five years
and in excess of 20GW of renewable energy capacity in the UK over the next 10
years.

 

The Group is now fully committed which will have a positive impact on both
portfolio income and dividend cover from the previously announced figure of
0.98x in the interim results for the six months ended 30 September 2022. The
Facility is also anticipated to provide TENT with further opportunities for
additional funding on similar terms in due course.

 

 

John Roberts, the Company's Chair, said:

 

"Facilitating the development of large-scale clean energy infrastructure is
the key task that will unlock the UK's achievement of Net Zero targets. Our
aim is to actively support this vital journey whilst also delivering
attractive shareholder returns.

 

Innova is a well-established integrated developer and operator of solar and
ESS assets, and we are delighted to be able to help the business achieve its
aim of accelerating the decarbonisation of the grid, through long term and
sustainable solutions."

 

Robin Dummett, Managing Director of Innova Renewables, said:

 

"Achieving the Government's ambitious goals for solar and ESS deployment
requires substantial funding for the development of renewable energy assets.
We are delighted to be partnering with TENT to grow our pipeline of solar and
ESS assets, and are actively exploring further ways to work together on future
opportunities."

 

For further information, please contact:

 

 Triple Point Investment Management LLP   +44 (0) 20 7201 8989

 Jonathan Hick

 Christophe Arnoult

 J.P. Morgan Cazenove (Corporate Broker)  +44 (0) 20 7742 4000

 William Simmonds

 Jérémie Birnbaum

 Akur Limited (Financial Adviser)         +44 (0) 20 7493 3631

 Tom Frost

 Anthony Richardson

 Siobhan Sergeant

 Buchanan (Financial PR)                  +44 (0) 20 7466 5111

 Helen Tarbet

 Henry Wilson

 Hannah Ratcliff

 Verity Parker

LEI: 213800UDP142E67X9X28

 

Further information on the Company can be found on its website:
www.tpenergytransition.com (http://www.tpenergytransition.com)

 

NOTES:

 

The Company is an investment trust which aims to invest in assets that support
the transition to a lower carbon, more efficient energy system and help the UK
achieve Net Zero.

 

Since its IPO in October 2020, the Company has made the following investments
and commitments:

 

·      Harvest and Glasshouse: provision of £21m of senior debt finance
to two established combined heat and power ("CHP") assets, located on the Isle
of Wight, supplying heat, electricity and carbon dioxide to the UK's largest
tomato grower, APS Salads ("APS") - March 2021

·      Spark Steam: provision of £8m of senior debt finance to an
established CHP asset in Teesside supplying APS, as well as a further power
purchase agreement through a private wire arrangement with another food
manufacturer - June 2021

·      Hydroelectric Portfolio (1): acquisition of six operational, Feed
in Tariff ("FiT") accredited, "run of the river" hydroelectric power projects
in Scotland, with total installed capacity of 4.1MW, for an aggregate
consideration of £26.6m (excluding costs) - November 2021

·      Hydroelectric Portfolio (2): acquisition of a further three
operational, FiT accredited, "run of the river" hydroelectric power projects
in Scotland, with total installed capacity of 2.5MW, for an aggregate
consideration of £19.6m (excluding costs) - December 2021

·      BESS Portfolio: commitment to provide a debt facility of £45.6m
to a subsidiary of Virmati Energy Ltd (trading as "Field"), for the purposes
of building a portfolio of four geographically diverse Battery Energy Storage
System ("BESS") assets in the UK with a total capacity of 110MW - March 2022

·      Energy Efficient Lighting: Funding of c.£2.2m to a lighting
solutions provider to install efficient lighting and controls at a leading
logistics company - March 2023

·      Innova: Provision of a £5m short term development financing
facility to Innova Renewables, building out a portfolio of Solar and BESS
assets across the UK - March 2023

 

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 projects.

 

Following its IPO on 19 October 2020, the Company was admitted on the premium
listing segment of the Official List of the Financial Conduct Authority and
was admitted to trading on the Premium Segment of the Main Market of the
London Stock Exchange on 28 October 2022. The Company was also awarded the
London Stock Exchange's Green Economy Mark.

 

 

 

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