The Renewables Infrastructure Group (TRIG) has unveiled plans to raise at least £85m ($141m) – and as much as £120m – to acquire more wind and PV projects via a share issue on the London Stock Exchange.
The company, which is backed by the developer RES, also
announced it has reached agreements to buy five new projects – three onshore
wind farms totaling 47MW and two PV arrays totaling 30MW – that will lift its total
capacity to 366MW.
TRIG raised £310.1m in a London flotation last summer, as part
of a group of clean-tech IPOs that also included Greencoat UK Wind and the
Bluefield Solar Income Fund.
Since then TRIG – whose investment manager is InfraRed
Capital Partners and whose operations manager is RES – has acquired 20
projects, including 14 onshore wind farms in the UK< and 6 PV arrays across
Britain, Ireland and France.
Last month TRG nailed down a £80m revolving acquisition facility
with the Royal Bank of Scotland and National Australia Bank, which it will use
to finance its purchases of the five new projects.
It will then use the money it raises through its new share
issue to repay its banks.
TRIG has a Right of First Offer agreement in place with RES.
The three wind farms TRIG intends to acquire are the 25MW
Taurbeg project in Ireland, the 12MW Tallentire in England, and the 10MW Meikle
Carewe in Scotland. All three are currently owned by RES, while the latter two –
both taken on line last year – have power purchase agreements with Statkraft.
TRIG will also buy two PV arrays in southern England totaling
30MW, which are due for completion by the end of this month – allowing them to
qualify for 1.6 Renewable Obligation Certificates (ROCs) per kWh generated.
There is chance, however, that the construction timelines
will slip, meaning they would only qualify for 1.4 ROCs/kWh – in which case
TRIG will pay a lower price for them.
The growing geographical diversification of TRIG’s asset
portfolio exposes it to a wider range of weather conditions, regulatory regimes
and power markets, the company notes.
During 2013, TRIG’s wind and solar farms generated 5.3% more
electricity than expected.