The Renewables Infrastructure Group Limited
“TRIG” or “the Company”, a London-listed investment company advised by InfraRed Capital Partners (“InfraRed”) as Investment Manager and Renewable Energy Systems (“RES”) as Operations Manager.
Disposal of three onshore wind farms
TRIG has exchanged contracts to sell three wind farms in the Republic of Ireland for a combined consideration of c. €25m (the “Disposal”) to Statkraft. This represents a 26% premium to the valuation of the wind farms as at 31 December 2022[1]. The Disposals are subject to ordinary course clearances.
The Disposal is for 100% of TRIG’s equity interest in three older onshore wind farms (the “Projects”), with an aggregate capacity of 35MW, that are nearing the end of their expected lives. The profit on disposal reflects the development opportunity available to the buyer for life extension and repowering.
Active management of the Projects by RES, the Operations Manager, has improved operational performance. Value enhancement measures included the proactive monitoring and refurbishing of parts to reduce costs and minimise downtime; installation of equipment and software for control and condition monitoring which enhances performance; and the optimisation of power purchase agreement terms to improve revenues.
During TRIG’s ownership, which has been for approximately ten years, the Projects generated enough clean energy to avoid c. 300,000 tonnes of carbon emissions.
Richard Crawford, Head of Energy Income Funds at InfraRed said:
“Balance sheet discipline is crucial in a challenging macro-economic environment. These accretive disposals underline the quality of the Company’s portfolio. We remain confident in TRIG’s long-term strategy and continue to actively seek ways to deliver value for shareholders through capital allocation.”
Enquiries
InfraRed Capital Partners Limited +44 (0) 20 7484 1800
Richard Crawford
Phil George
Minesh Shah
Mohammed Zaheer