The Renewables Infrastructure Group Limited (TRIG) has said upcoming capital growth will arise from repowering, co-location, extensions, and improving the performance of existing sites, as well as new site developments. It says the development pipeline of 1GW by 2030 could be funded without the need for equity issuance
TRIG has a portfolio of wind, solar and battery storage projects across six countries in Europe with aggregate net generating capacity of over 2.8GW. In the past year near-term power prices have reduced from their recent peaks, particularly in the last quarter of 2023, and wind speeds in the UK and some parts of Europe were below long term averages.
The company divested three onshore wind farms in the Republic of Ireland for €25 million, which it said was a 26% premium to the valuation of the wind farms as at 31 December 2022. It is progressing with several further divestment opportunities.
Growth areas include battery storage, which is “an area of strategic focus” and “critical sector for the European energy transition … Storage assets are particularly complementary within a portfolio of renewables generation assets which can absorb the higher volatility commensurate with the higher returns battery storage investment offers.” It has progressed development of four two-hour battery acquired in late 2022. Final Investment Decision on the 74MW Ryton project was reached in Q3, and construction has begun with operational expected during 2025. Development activity is under way at Drakelow.
Richard Morse, Chairman of TRIG, said its investment managers have been “working hard to create additional value from within portfolio”. He added, “This is against a challenging backdrop for the share price, with tighter monetary conditions contributing to a decline in the company’s valuation and a sustained discount to net asset value as market return requirements have increased. If the interest rate cycle continues as expected, the coming year is showing signs of a more benign macroeconomic environment for the company.”