Renewables Investor TRIG Buys Stake in £2.5 Billion East Anglia One Offshore Wind Farm from GIG
Renewable energy infrastructure investment company The Renewables Infrastructure Group (TRIG) announced today that it has entered an agreement to acquire a 14.3% indirect equity interest in the East Anglia One wind farm. TRIG is acquiring the stake from Macquarie’s Green Investment Group (GIG), which has developed the project along with its joint venture partner, Iberdrola’s ScottishPower Renewables.
East Anglia One is one of the world’s largest offshore windfarms with an installed capacity of up to 714MW, equivalent to the energy required to power more than 630,000 homes. The £2.5 billion project, 43km off the Suffolk coast, is fully operational, following its announced completion in July of this year. The Project benefits from an attractive Contract-for-Difference (“CfD”) subsidy for the next 15 years with inflation indexation.
According to the terms of the new agreement, TRIG’s investment will consist of a 50% interest in the holding company through which GIG’s initial investment was made. Following completion of the transaction, offshore wind investments are expected to represent approximately 29% of TRIG’s portfolio. The investment is subject to a consent from The Crown Estate and is expected to complete by Q1 2021.
TRIG stated that it has partnered with InfraRed European Infrastructure Income Fund 4 (“IREIIF4”) for the transaction, a fund managed by InfraRed, which will acquire a 5.7% indirect equity interest in the project alongside TRIG. TRIG’s investment will be financed from a combination of its existing cash balance and a drawdown from the Group’s revolving acquisition facility.
According to TRIG, the investment fits well into the Company’s investment strategy, providing subsidised revenues for the next 15 years, lowering overall power price sensitivity of the portfolio and strengthening the Company’s position in the attractive offshore wind market.
Helen Mahy, CBE, Chairman of TRIG, said:
“We are delighted to be investing in this high quality asset which marks our continued commitment to supporting the global transition to a more sustainable future, and to be joining with such well-established and respected partners in Green Investment Group and ScottishPower Renewables. East Anglia One is TRIG’s fourth investment in the offshore wind sector and its second offshore wind investment in the UK. Offshore wind is essential to the UK meeting its 2050 net-zero targets.”