TRIG announces acquisition of Freasdail Wind Farm
Renewable Energy Systems
London Stock Exchange listed renewable energy infrastructure fund The Renewables Infrastructure Group Limited (TRIG) announces today that is has completed the acquisition of a 100% interest in Freasdail Wind Farm, a 22.55MW onshore wind project in Scotland, from TRIG's Operations Manager, Renewable Energy Systems (RES) under the Company’s right-of-first-offer agreement with RES. Total consideration was £18.5 million including project completion costs.
The Project is in an advanced stage of construction and is expected to be commissioned in the first quarter of 2017 and to be accredited under the UK’s 20-year 0.9 ROC per MWh support regime. RES, which is experienced in construction management, has been retained by TRIG to complete the final stages of building and commissioning the Project.
The Project has an expected 25-year lifespan and includes 11 Senvion MM82 wind turbine generators, each with a rated capacity of 2.05MW. The Project benefits from a 15-year power purchase agreement including a floor price with Vattenfall Energy Trading GmbH. The Project has long-term finance in place from KfW Ipex-Bank GmbH, fully amortising over 15 years. TRIG’s investment in the Transaction has been financed from the net proceeds of the recent oversubscribed equity-raising under TRIG’s second share issuance programme. The Transaction is in line with TRIG’s published investment policy.
The Transaction increases TRIG’s portfolio net generating capacity (pro rata to TRIG’s equity interests) to 708MW. TRIG’s 18 UK onshore wind projects currently account for nearly 5% of the UK’s overall onshore wind capacity, while the Company’s overall electricity generation in the first
half of 2016 was equivalent to approximately 1.7% of all UK renewables-sourced electricity generation.
TRIG continues its strategy of providing investors with long-term, stable dividends by investing in a range of predominantly operational, income-producing, renewable energy generation projects diversified by geography, power market and technology.
Helen Mahy CBE, Chairman of TRIG, said:
“TRIG’s acquisition of Freasdail Wind Farm further diversifies the Company's portfolio, taking our net generating capacity above 700MW. TRIG generates clean electricity equivalent to the amount required to power approximately 400,000 homes and avoids the production of 600,000 tonnes of CO2 annually.”