Part Acquisition of Ersträsk Wind Farm
20 December 2018
The Renewables Infrastructure Group Limited
("TRIG" or the "Company", a London-listed investment company advised by InfraRed Capital Partners as Investment Manager and RES (Renewable Energy Systems) as Operations Manager)
Acquisition of a 75% interest in Ersträsk Wind Farm
Acquisition of Ersträsk Wind Farm, increasing portfolio capacity to 1,110MW
The Board of TRIG is pleased to announce that the Company has exchanged contracts to acquire a 75% interest in Ersträsk Wind Farm ("Ersträsk" or the "Project"), a 229.1MW onshore wind farm near Piteå in Northern Sweden. The Project is being acquired from Enercon Independent Power Producer GmbH.
Ersträsk is currently under construction and will be comprised of 26 Enercon E-103 turbines of 2.35MW capacity each ("Phase 1") and of 42 Enercon E-126 turbines of 4.0MW capacity each ("Phase 2"). Phase 1 is expected to become operational in Q1 2019 and Phase 2 in Q1 2020.
Payment to the vendor for each of the two phases will be made only as each phase commences operation and is expected to be approximately €190 million in total. The investment will be financed by the Company's revolving acquisition facility. The project has no third-party debt.
Renewables in Sweden receive the benefit of a 15-year green certificate, but the substantial majority of revenues come from power sales. Ersträsk has already entered into hedging agreements for fixing power prices for the next 2 years for all of Phase 1 and a portion of Phase 2 expected generation and intends to utilise hedges on an ongoing basis to manage exposure to power price variations.
The Company announced on 1 August 2018 that it was in advanced discussions to invest in the Project. The Company has a strategy of diversifying risk by investing in multiple renewables and related technologies, jurisdictions and climate systems within its geographical focus of Northern Europe. Ersträsk, the Company's first investment in Sweden, provides further portfolio diversification of regulatory regimes, weather systems and power price markets. The acquisition will increase TRIG's geographical diversification by taking its investments outside of the UK to 28% of the portfolio.
Richard Crawford, Director, Infrastructure at InfraRed Capital Partners, said:
"Ersträsk is an important transaction for TRIG and its first investment in the Nordic region. This acquisition enables TRIG to further improve its geographical diversification and establish TRIG's presence in one of Europe's most attractive regions for renewable energy development. The investment fits nicely within the portfolio alongside TRIG's other acquisitions in 2018 in France, the UK and Ireland with their strong Feed-in-tariff and Contracts-for-difference support mechanisms."
Enquiries
InfraRed Capital Partners Limited +44 (0) 20 7484 1800
Richard Crawford
Phil George
Tulchan Communications +44 (0) 20 7353 4200
Martin Pengelley
Toby Bates
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 targeting an aggregate dividend of 6.50 pence per Ordinary Share for the year to 31 December 2018.
TRIG is invested in a portfolio of 62 onshore wind and solar PV generation projects in the UK, France, the Republic of Ireland and Sweden including the acquisition announced today, with aggregate net generating capacity in excess of 1,110MW. 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 and Sydney. With over 150 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 80 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 Limited), the world's largest independent renewable energy company.
RES has been at the forefront of wind energy development for over 35 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 16GW in capacity. RES' operational asset portfolio exceeds 3.5GW 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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