The Renewables Infrastructure Group (TRIG) has exchanged contracts to sell three wind farms nearing the end of their expected lives in the Republic of Ireland to Statkraft.
The projects, totalling 35MW, were sold for €25 million, which TRIG said represents a 26% premium to the valuation of the wind farms as at 31 December 2022. It said the profit on disposal reflects the development opportunity available to the buyer for life extension and repowering.
TRIG has owned the three projects for ten years and says active management by RES, the operations manager, has improved operational performance. Value enhancement measures included the proactive monitoring and refurbishing of parts to reduce costs and minimise downtime; installation of equipment and software for control and condition monitoring which enhances performance; and the optimisation of power purchase agreement terms to improve revenues.
Richard Crawford, Head of Energy Income Funds at InfraRed said: “Balance sheet discipline is crucial in a challenging macro-economic environment. These accretive disposals underline the quality of the company’s portfolio. We remain confident in TRIG’s long-term strategy and continue to actively seek ways to deliver value for shareholders through capital allocation.”
TRIG is invested in a portfolio of wind, solar and battery storage projects across six countries in Europe with aggregate net generating capacity of over 2.8GW.