TRIG Renewables’ Share Price Fell Then Recovered on Acquisition

The Renewables Infrastructure Group Ltd (LON: TRIG) share price fell, then recovered to trade slightly up at the time of writing. The company announced that it had completed the acquisition of a development platform.TRIG has taken an entire equity stake in Fig Power, a developer from the UK specialising in battery storage. 

TRIG, a publicly traded investment entity on the London Stock Exchange, managed by InfraRed Capital Partners for investment guidance and Renewable Energy Systems for operational management, noted that the acquisition marks a significant step towards diversifying its technology portfolio.

The acquisition enhances TRIG’s development pipeline with 400MW battery storage projects nearing completion. The team at Fig Power, recognised for its broad experience in the energy industry and a history of successful ventures, is poised to benefit from the combined expertise of TRIG's managing teams.

Located in Bristol and previously associated with Hydrock Consultants Limited, Fig Power was acquired by TRIG with an anticipated investment of about £20 million over the next two years. This investment is split evenly between the initial purchase price and subsequent development costs.

Fig Power is expected to generate its funding by selling a portion of its development pipeline before construction begins, based on annual budget reviews and at TRIG's discretion. These two-hour capacity projects primarily aim at the UK's wholesale and balancing markets rather than relying on the more limited ancillary services market.

Fig Power's portfolio includes a 1.7GW development pipeline in the UK, which features nine projects in advanced stages (totalling approximately 400MW with grid connections slated between 2025 and 2033) and an additional roughly 1.3GW of exclusive sites.

The acquisition not only ensures a robust project pipeline for TRIG to develop but also opens avenues for selling these developed projects to third parties, thereby unlocking development value for TRIG. Furthermore, Fig Power is considering exploring development opportunities within the solar PV sector.

TRIG emphasises prudent capital management, balancing investments like the Fig Power acquisition with advanced divestment strategies. The proceeds from these divestments are anticipated to reduce RCF borrowings, which stood at £364 million as of December 31, 2023.

TRIG Renewables share price. 

The TRIG Renewables share price fell, then recovered after its latest acquisition.