The Renewables Infrastructure Group Limited -Acquisition of two onshore wind farms in France
The Board of TRIG is pleased to announce that it has acquired two onshore wind farms in Northern France, Rosieres and Montigny (the "Projects") located in Meuse and Aisne. The assets are currently under construction and expected to become operational in Q4 2018 when they will have a combined operating capacity of 31.8MW. Once the projects are operational, TRIG will have 140MW of generation capacity in France, which is 15% of the existing portfolio by capacity.
The Projects will benefit from the attractive French subsidy arrangements underpinning contracted index linked revenues per MWh generated.
Rosieres comprises eight 2.2MW Vestas turbines which benefit from the 2016 Contract for Difference ("CfD") subsidy of 15 years. Montigny comprises six 2.0MW Vestas turbines, with the 2015 Feed in Tariff ("FiT") subsidy of 15 years, and one 2.2MW Vestas turbine, with the 2017 CfD subsidy of 20 years.
The Projects were acquired from TRIG's Operations Manager, RES, pursuant to TRIG's right of first offer agreement. The total consideration for the Projects is expected to be c.€28 million, including construction costs and net of project level debt financing. TRIG's investment was funded from the Group's revolving acquisition facility, following which stands at £113 million drawn.
Following these acquisitions, 6% of TRIG's portfolio value is in assets under construction, measured on a fully invested basis. TRIG continues to manage its currency exposure to non-sterling assets by hedging approximately 50% of the valuation of such assets.
Richard Crawford, Director, Infrastructure at InfraRed Capital Partners, said:
"We are very pleased to have secured these two wind farms in France which further add to the geographical diversification of the portfolio. The Projects benefit from long-term, inflation-linked tariffs in the form of French FiTs and CfDs which guarantee the price to be paid for the power generated. Furthermore, the wind farms are being constructed by RES and will benefit from their extensive construction expertise for the short period leading up to their commissioning at the end of 2018."