Acquisition of two onshore wind farms in Sweden
27 May 2021
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 two onshore wind farms in Sweden
The Board of TRIG is pleased to announce that the Company has exchanged contracts to acquire a 50% interest in two onshore pre-construction wind farms, Ranasjö and Salsjö. The projects are located in central Sweden and together are referred to as Twin Peaks, with a combined capacity of 242MW. The acquisition is subject to certain conditions being satisfied, including entering into final agreements for the construction of the wind farms. The transaction is expected to complete by July 2021.
TRIG has partnered with InfraRed European Infrastructure Income Fund 4 which will acquire a 50% interest in the project alongside TRIG. This is consistent with TRIG's strategy of partnering with aligned co-investors on larger transactions whilst maintaining a diversified portfolio.
The asset has been sourced bilaterally building on InfraRed's existing relationship with Arise, an active developer of projects in the Nordics and UK from whom TRIG acquired the 213MW Jädraås wind farm in 2019. The projects are being funded on an ungeared basis.
The windfarms, which are approximately 20 km apart and share grid and access infrastructure, are located in central Sweden, near Sollefteåand about 100km from Östersund, in the SE2 Nord Pool price area. Construction is expected to commence in Q3 2021 and to be completed in the first half of 2024, with each wind farm using Siemens Gamesa 170 6.2MW turbines with Siemens providing O&M services under a 30-year agreement. The Ranasjö project will comprise 25 turbines whilst the Salsjö project will comprise 14 turbines. Arise will provide the asset management services with RES providing oversight through the Owner's Engineer role during construction. Onshore wind capacity contributes to Sweden's ambition to meet net-zero carbon emissions by 2045. Once operational Twin Peaks will provide enough clean energy to power the equivalent of more than 45,000 homes.
On completion, the windfarms are together expected to represent approximately 4.5% of TRIG's portfolio value on a fully committed basis and investments in Sweden will account for approximately 15% of TRIG's portfolio. This acquisition takes the Company's exposure to construction projects to approximately 11% of portfolio value.
TRIG has total commitments of approximately £200m including Twin Peaks due over the next three years to fund construction phase projects. TRIG's revolving credit facility is currently £135m drawn.
As with Grönhult, Twin Peaks will receive market-based revenues once operational, and the Investment Manager will consider a range of power price hedging strategies.
Helen Mahy, CBE, Chairman of TRIG, said :
"The Nordics is a key region for our diversified portfolio and we're pleased to continue our relationship with Arise. We firmly believe developing and leveraging relationships through our Managers is crucial in an increasingly competitive market for renewables, whilst partnering with aligned co-investors enhances our access to attractive opportunities."
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
James Isola
Zara de Belder
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 over 75 wind, solar and battery storage projects with aggregate net generating capacity of over 1.9GW, enough renewable power for over one million homes and displacing over 1.3 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 and real estate. It operates worldwide from offices in London, Hong Kong, New York, Seoul, Sydney and Mexico City. With over 190 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 38 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 17GW in capacity. RES supports over 6.3GW of operational assets worldwide for a large client base. Headquartered in Hertfordshire, UK, RES is active in 10 countries and has over 2,000 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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