LONDON, UK: The Renewables Infrastructure Group Limited (TRIG) has exchanged contracts to acquire a 100% interest in four solar PV sites in the province of Cadiz, Spain, with a total capacity of 234MW.

Completion of the acquisition is subject to certain conditions being satisfied. The transaction is expected to complete in respect of three projects that are ready-to-build in Q3 2021.

The fourth project is expected to complete in Q1 2022 once development activities are finalised and it is ready-to-build.

This solar investment in Spain adds to TRIG’s technological and geographical diversification, including diversification of power markets and weather systems. These projects do not rely on government subsidy and the Investment Manager will consider a range of power price hedging strategies to manage their exposure to changes in merchant power prices.

The solar PV projects have been developed and are being built by Statkraft (a major Norwegian state-owned utility).

The Projects are expected to complete construction in Q4 2022. Through contractual measures put in place, TRIG will not bear any construction risk as part of this transaction – notably due to a right to put any of the four projects back to Statkraft in the event that a project is not successfully commissioned by its respective long stop date.

Whilst this is a first investment in Iberia for TRIG, InfraRed has significant experience in the region and is currently managing an investment in a c. 600MW solar development platform in Spain.

Sustainability considerations are core to InfraRed’s investment process. They are particularly pertinent to the Managers’ assessment of this investment given the challenges associated with the supply chain of solar panel manufacturing.

On-site tracing of components and confirmation of the practical application of codes of conduct will be undertaken during the manufacture of the panels to be used in these solar PV projects. This work is being overseen by an engineering and technical support services company that specialises in the solar PV and energy storage sectors.

On completion, these projects are expected to represent collectively approximately 6% of TRIG’s portfolio value. The investment will be funded from any of the Company’s revolving credit facility, retained earnings or capital raised from equity issuance.

The revolving credit facility is currently approximately £141 million drawn, following investments made earlier in the year.

Following the completion of the acquisition of the projects, the Company’s revolving credit facility is expected to be drawn approximately £200m. The Company will also have outstanding commitments of approximately £285m due over the next three years relating to projects in construction.

Helen Mahy CBE, Chairman of TRIG, said: “This first investment in the Iberian region is a landmark for TRIG, and complements the existing portfolio. It builds on the portfolio’s technological and geographic diversification, which are key to long-term portfolio resilience.”

Richard Crawford, Director, Infrastructure, InfraRed, said: “Having evaluated a number of investment opportunities over the last 12 months to add solar in Iberia to TRIG’s portfolio, we are pleased to have entered into this strategic partnership with Statkraft; who, having developed these four sites, will stay on to deliver the projects through the construction phase and share our approach to supply chain verification.”

www.trig-ltd.com