The Renewables Infrastructure Group Limited (TRIG) announced last week that it has acquired three large-scale ground-mounted fully operational solar PV generating projects, on agricultural sites in the South and East of England with an aggregate generating capacity of 56.6MW from a joint venture between the British Solar Renewables group, one of UK's most experienced solar developers with over 150 employees, and Santander.
The aggregate valuation of 100% of the interests in the three projects is £73.7 million (or approximately £76 million including working capital). The final consideration payable is subject to certain performance adjustments.
The acquired portfolio comprises a 24.2MW plant at Parley Court Farm, Dorset, a 21.2MW plant at Egmere Airfield, Norfolk and a 11.1MW plant at Penare Farm, Cornwall. The projects have been constructed by Isolux Corsán with modules supplied by ReneSola.
All projects have received ROC accreditation at 1.6 ROCs per MWh. Isolux Corsán has been retained to provide operations and maintenance services under an agreement covering the two year warranty period under the EPC. Short term power purchase agreements are already in place and longer term replacements are being considered. The projects do not have project-level debt. In due course, TRIG may introduce project-level debt and/or sell down a minority interest in the projects to optimise the capital structure and enhance overall returns to the Group.
The acquisition has been funded by the group partly from cash resources and partly from utilisation of the revolving acquisition facility which (after making the acquisition) is approximately £40m drawn.
Richard Crawford from InfraRed Capital Partners, TRIG's Investment Manager, said:
"These three large scale solar projects nearly double the generating capacity of TRIG's solar PV portfolio. Solar now accounts for in excess of one third of the Group's investments by value, up from 10% at IPO, providing investors with good exposure to the two well-established and complementary technologies of onshore wind and solar PV."
TRIG's aggregate portfolio now comprises 27 investments totaling approximately 398 MW. The acquisitions further diversify TRIG's portfolio, with solar PV now representing 11 out of 27 portfolio investments.