Acquisition of Operational Solar PV Site in Spain
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31 March 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 RES ("Renewable Energy Systems") as Operations Manager)
Acquisition of an operational solar PV site in Spain
TRIG has acquired a 49% equity interest in Project Valdesolar, an operating solar park in the province of Badajoz, Spain, (the "Project" or "Valdesolar"), from Repsol ("Repsol"), a Spanish-listed global energy company.
Valdesolar represents approximately 3% of TRIG's portfolio, by value. Together with the Cadiz solar projects, this acquisition further enhances TRIG's technological and geographical diversification. Following this acquisition, Spain represents 8% and solar PV 15% of the Company's portfolio.
Valdesolar, which has a total capacity of 264MW, has been operational since December 2021. The Project generates enough clean energy to power the equivalent of 140,000 homes.
Repsol developed and built Valdesolar, and will retain a 51% equity interest in the Project. TRIG will have director representation at the project company and strong minority-investor protections.
Valdesolar does not receive any government subsidies and TRIG will work with Repsol to manage the Project's exposure to merchant power prices by considering a range of power price hedging strategies. With the current elevated levels in the wholesale power market, which are not assumed to persist, the Investment Manager continues its prudent approach to incorporating power price forecasts into investment valuations.
Richard Crawford, of InfraRed Capital Partners, said:
"We are very pleased to be partnering with Repsol on this large operating solar project. Projects such as Valdesolar offer a route to improved energy security and decarbonisation of the Spanish energy system.
Together with last year's investment in the Cadiz solar projects, Valdesolar adds to TRIG's technological and geographic portfolio diversification. Once the Cadiz solar projects are operational at the end of 2022, TRIG's solar portfolio will have net generation capacity in excess of 500MW."
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 spread across the UK, Ireland, France, Germany, Spain and Sweden with aggregate net generating capacity of 2.4GW, enough clean energy capable of powering over 1.3 million homes and displacing over 1.6 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 .
Investment Manager
TRIG's Investment Manager is InfraRed Capital Partners Limited ("InfraRed") which has successfully invested in over 200 infrastructure projects since 1997. InfraRed is a leading international investment manager focused on infrastructure. It operates worldwide from offices in London, New York, Seoul and Sydney. With 165 professionals it manages in excess of USD 12 billion of 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 85 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 at 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 9GW of operational assets worldwide for a large client base. Headquartered in Hertfordshire, UK, RES is active in 10 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 .
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