Renewables Group in £50m placing; talks on new UK projects

The Renewables Infrastructure Group (TRIG) said it planned to raise £50m through a share issue to fund new project acquisitions.

The placing will be at a fixed price of 103.0p a share.

TRIG said it was in advanced discussions with a view to acquiring a number of projects in the UK.

These included two projects under exclusivity agreements with TRIG's Operations Manager, Renewable Energy Systems (RES) with an aggregate price in the region of £100.

The two investments, which are expected to be completed in the second quarter of 2017, are a 100% interest in Garreg Lwyd Hill, an onshore wind farm in Powys, Wales with 30.6MW of generating capacity and a 100% stake in Broxburn, a battery storage project in West Lothian, Scotland with 20MW of output capacity.

Neither of the two projects has debt financing, TRIG said. Garreg Lwyd includes 17 Vestas 1.8MW turbines, has been developed and built by RES and will be eligible for 0.9 renewable obligations certificates per MWh under the UK government's support scheme.

Broxburn benefits from a bespoke bilateral contract with National Grid Electricity Transmission to provide dynamic grid balancing services, TRIG said.

“For the initial four years of operations under the contract, revenues are substantially based on pre-determined, RPI-indexed availability payments,” it added.