The Renewables Infrastructure Group (TRIG) has acquired an equity interest of 17.5 percent in Beatrice offshore wind farm from Copenhagen Infrastructure Partners (CIP).
Beatrice is a 588MW offshore wind farm built by SSE using Siemens turbines, has a track record since operations started in 2018 and profits from a Contract-for-Difference (CfD) grant. Following completion of the deal, Beatrice will constitute nearly 12 percent of TRIG’s investment portfolio.
The wind farm is situated approximately 13 kilometers off the north east coast of Scotland and consists of 84 Siemens 7MW turbines using direct-drive technology. The plant has a 15-year maintenance deal with Siemens. The CfD grant of the Project sets the price obtained for all power produced until 2034, with inflation indexation. Plan debt funding is fixed and completely amortized during the grant duration.
Investments that are subject to regulatory and investor approval, which are scheduled to be issued in the coming weeks, would be funded through the drawdown of the Group’s newly renewed revolving credit facility. TRIG’s joint partners will be SSE plc (40 per cent), funds controlled by Equitix Investment Management Limited (which also acquires a 17.5 percent interest in CIP and is affiliated with TRIG on the Sheringham Shoal offshore wind farm) and Red Rock Power Limited (25 percent ).
As has recently been highlighted by the UK Government, offshore wind projects have a significant role to play in the decarbonization of the UK economy. As well as ongoing economic benefit through the provision of local jobs (with up to 90 roles at the operational base for the Project in Wick, Scotland), the Project provides enough clean energy to power the equivalent of more than 450,000 homes.
“We are pleased to have the opportunity to invest in this high-quality project developed by SSE, who are a leading generator of renewable electricity in the UK. As investment Manager, InfraRed seeks attractive opportunities for TRIG that increase the robustness of the portfolio, helping to deliver sustainable returns to shareholders from a diversified portfolio of renewables infrastructure. This major acquisition represents a continuation of this investment strategy and will be the Company’s third investment in a UK offshore wind farm and its 5th in the offshore wind sector.”
Richard Crawford, of InfraRed Capital Partners.
