TRIG acquires two onshore wind farms in Sweden

LONDON, UK: The Board of The Renewables Infrastructure Group Limited (TRIG) has exchanged contracts to acquire a 50% interest in two onshore pre-construction wind farms, Ranasjö and Salsjö.

The projects are located in central Sweden and together are referred to as Twin Peaks, with a combined capacity of 242MW. The acquisition is subject to certain conditions being satisfied, including entering into final agreements for the construction of the wind farms. The transaction is expected to complete by July 2021.

TRIG has partnered with InfraRed European Infrastructure Income Fund 4 which will acquire a 50% interest in the project alongside TRIG. This is consistent with TRIG’s strategy of partnering with aligned co-investors on larger transactions whilst maintaining a diversified portfolio.

The asset has been sourced bilaterally building on InfraRed’s existing relationship with Arise, an active developer of projects in the Nordics and UK from whom TRIG acquired the 213MW Jädraås wind farm in 2019. The projects are being funded on an ungeared basis.

The windfarms, which are approximately 20 km apart and share grid and access infrastructure, are located in central Sweden, near Sollefteå and about 100km from Östersund, in the SE2 Nord Pool price area. Construction is expected to commence in Q3 2021 and to be completed in the first half of 2024, with each wind farm using Siemens Gamesa 170 6.2MW turbines with Siemens providing O&M services under a 30-year agreement.

The Ranasjö project will comprise 25 turbines whilst the Salsjö project will comprise 14 turbines. Arise will provide the asset management services with RES providing oversight through the Owner’s Engineer role during construction. Onshore wind capacity contributes to Sweden’s ambition to meet net-zero carbon emissions by 2045.

Once operational Twin Peaks will provide enough clean energy to power the equivalent of more than 45,000 homes.

On completion, the windfarms are together expected to represent approximately 4.5% of TRIG’s portfolio value on a fully committed basis and investments in Sweden will account for approximately 15% of TRIG’s portfolio. This acquisition takes the Company’s exposure to construction projects to approximately 11% of portfolio value.

TRIG has total commitments of approximately £200m including Twin Peaks due over the next three years to fund construction phase projects. TRIG’s revolving credit facility is currently £135m drawn.

As with Grönhult, Twin Peaks will receive market-based revenues once operational, and the Investment Manager will consider a range of power price hedging strategies.

Helen Mahy, CBE, Chairman of TRIG, said: “The Nordics is a key region for our diversified portfolio and we’re pleased to continue our relationship with Arise. We firmly believe developing and leveraging relationships through our Managers is crucial in an increasingly competitive market for renewables, whilst partnering with aligned co-investors enhances our access to attractive opportunities.”

The Renewables Infrastructure Group (TRIG) is a leading London-listed renewable energy infrastructure investment company.

TRIG is invested in a portfolio of over 75 wind, solar and battery storage projects with aggregate net generating capacity of over 1.9GW, enough renewable power for over one million homes and displacing over 1.3 million tonnes of carbon emissions per annum TRIG is seeking further suitable investment opportunities which fit its stated Investment Policy.

Renewables Infrastructure Group Ltd

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26 May, 4:37 pm GMT+1 · Disclaimer

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