TRIG to acquire £100M wind and storage power projects in Scotland
TRIG, The Renewables Infrastructure Group Ltd, is considering the potential acquisition of a battery storage project and a Welsh wind farm in Scotland for a total amount of £100 million (US$125 million).
The negotiation comprises the purchase of the 20 MW Broxburn battery storage project in West Lothian and the 30.6 MW Garreg Lwyd Hill wind park in Powys from Renewable Energy Systems (RES), its own operations manager. Both assets have no debt financing.
Developed by RES, the Broxburn project, is expected to enter the construction phase shortly and to become operational by January 2018. Garreg Lwyd comprises 17 Vestas' 1.8-MW wind turbines. The wind farm will be eligible for 0.9 Renewable Obligation Certificates (ROCs) per MWh under the UK government's support scheme.
Both transactions are expected to close in the second quarter of 2017. TRIG plans to finance the projects with the proceeds of a fresh GBP50 million (US$62.5 million) share issue and funds available under its acquisition facility.
The Renewables Infrastructure Group Limited is a closed-ended investment company, investing in and managing a portfolio of investments in renewable energy infrastructure project companies. Its objectives are 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; to maintain prudent financial management in terms of the approach to cost control, cash management, dividend cover, etc. Its portfolio comprises over 50 investments in the United Kingdom, Republic of Ireland and France. InfraRed Capital Partners Limited is the investment manager of the company.
