TRIG has bolstered its technological and geographical diversification with the acquisition of four solar PV sites in the province of Cadiz, Spain, with a total capacity of 234MW.
The solar PV sites are being built by Statkraft, a major Norwegian state-owned utility. The projects are expected to complete construction in Q4 2022.
None of the acquisitions rely on government subsidy and the investment manager will consider a range of power price hedging strategies to manage exposure to changes in merchant power prices.
This solar investment enhances TRIG's diversification of power markets and weather systems, with the group previously focusing on wind power. On completion, these projects are expected to represent approximately six percent of TRIG's portfolio value.
While this is a first investment in Iberia for TRIG, its management team, InfraRed has significant experience in the region and is currently overseeing an investment in a c. 600MW solar development platform in Spain.
InfraRed previously spoke with Fundeye about its plans to expand investments into Iberia.
Following the acquisition, the company's revolving credit facility is expected to be drawn approximately £200 million. TRIG will also have outstanding commitments of approximately £285 million due over the next three years relating to projects in construction.
Helen Mahy CBE, chairman of TRIG, said: "This first investment in the Iberian region is a landmark for TRIG, and complements the existing portfolio. It builds on the portfolio's technological and geographic diversification, which are key to long-term portfolio resilience."
Richard Crawford, director, infrastructure, InfraRed, added: "Having evaluated a number of investment opportunities over the last 12 months to add solar in Iberia to TRIG's portfolio, we are pleased to have entered into this strategic partnership with Statkraft; who, having developed these four sites, will stay on to deliver the projects through the construction phase and share our approach to supply chain verification."
