TRIG will increase its renewable portfolio to 1.44GW with this stake acquisition in Gode Wind 1
The Renewables Infrastructure Group (TRIG) has signed an agreement to acquire 25% of indirect equity stake in the 330MW offshore wind farm Gode Wind 1, located in the German North Sea.
TRIG is acquiring the interest from Global Infrastructure Partners (GIP), as part of disinvestment of its 50% stake in the project. The remaining 50% stake is held by Ørsted.
Originally, the project was developed and constructed by Ørsted and it will continue to provide Operations & Maintenance (O&M) services under a 20-year contract.
The offshore wind farm, which started operations in February 2017, will be supported by an attractive Feed-In Tariff. TRIG stated that the acquisition will increase its portfolio to 1.44GW.
The transaction represents about 8% of TRIG’s total portfolio
TRIG’s portfolio includes 65 wind, solar and battery storage projects across the UK, France, Germany, the Republic of Ireland and Sweden. The acquisition of stake in Gode Wind 1 offshore wind farm would represent approximately 8% of its portfolio.
The Gode Wind 1 is powered by 55 of Siemens Gamesa’s 6MW turbines. The Feed-in-Tariff will be in place till November 2027, followed by floor price for an additional 10 years. As per TRIG, the investment will be held alongside funds managed by an institutional fund manager.
TRIG’s investment is subject to lender consent and competition clearance and it will be procured from a combination of proceeds of its recent fund raise and a drawdown of its revolving acquisition facility.
TRIG chairman Helen Mahy CBE said: “The Board of TRIG is delighted to make the Company’s second investment in offshore wind in this important market. Offshore wind has developed into an attractive investment category and has been growing at pace in Germany over the last 4 years. TRIG now has investments in each of the two largest offshore wind markets in the world.”
Following the completion of the transaction, the non-UK share of TRIG’s portfolio will be nearly 42%, including agreed commitments.