The Renewables Infrastru... Share Discussion Threads

[cwa1] 27/11/2020 14:20

Picked up a few in the 125's myself. Good fortune all

[stewart64] 27/11/2020 14:18

Denied access to the TAP issue cos I tried to use ISA funds. Picked up some just in the 125s as a consolation.

[ec2] 27/11/2020 14:10

Tap issue just announced as oversubscribed so time for me to go back in.

[nerja] 27/11/2020 10:28

Getting tempting now, but will touch that 125p

[stewart64] 26/11/2020 21:40

May be looking in the 125s tomorrow. Greencoat went within 0.4p of the new issuance price on deadline day of their TAP issue back on 29th September.

[petewy] 22/11/2020 12:06

good mention in IC:
For investors looking to access this space, Ryan Hughes, head of active portfolios at AJ Bell recommends looking at the largest and most established in the sector, The Renewables Infrastructure Group (TRIG). “It has a strong pedigree, was launched over seven years ago and has a market cap of well over £2bn, which should encourage investors that they are not simply following the latest fashionable investment idea,”
and more...

[hindsight] 15/11/2020 21:22

Any views on the Downing renewables float? At least they should be buying assets priced using a low electricity price. However thier track record may be another issue

[adamb1978] 12/11/2020 20:46

I like these as a bond-like holding in my pension. All my corporate pension plans have been moved in to my SIPP and so I want c.20% of it held in either bonds or asset-backed type companies, and these guys fill the bill for part of that

[bogman1] 12/11/2020 17:17

Seems like a solid investment for the future, hold this jlen and octopus alternative energy is definitely a growing business. I have been in almost a year and am seeing steady gains, throughout or in spite all of this excitement

[pinemartin9] 12/11/2020 17:14

So they are an energy generation company that buys into derisked assets. They don't do the project development but have first refusal on the pipeline of RES. They also acquire elsewhere too. Mainly onshore portfolio but with a small stake in offshore Merkur (Germany). The NAV fluctuates dependent on the value of their assets which is determined by historic and future energy returns form that asset. Cash flow comes in from selling the energy or from power purchase agreements.

Where the upside will come is from an upturn in energy prices through increased demand and also revaluation of their operational assets. I assume if they repower a wind farm or "sweat the asset" beyond the original design life this will have a significant value to them and the NAV value.

The dividend of 6.5% is interesting. Seems like a long term hold and wait for them increase NAV through canny management of their portfolio leveraging the technical expertise of RES.

How long have people here been in and what's your motivation? I like the idea of gaining exposure to a range of operational wind farms. The dividend is nice. What has driven share price increase historically here?

[hindsight] 12/11/2020 14:30

Worth watching Pinemartin9, click wholesale price trends

[pinemartin9] 12/11/2020 12:21

I agree - boring can be best. I need to research this some more but they basically buy into operational assets for the long run, is that right? Do they do any hands on asset optimisation or work with partners to do this?

[gateside] 12/11/2020 09:38

Boring shares can often be the best investments

[pinemartin9] 12/11/2020 07:56

Orsted, Nextera Energy have both done well for me. I'm looking at TRIG but looks a little "boring". Take a look at RWE. Just merged with EON and massive pipeline of projects in development. Thoughts welcome.

[carpingtris] 21/10/2020 09:32

RNS from yesterday:

Acquisition of French onshore wind construction project

The Board of TRIG is pleased to announce that the Company has acquired a 100% interest in Haut Vannier SAS ("Haut Vannier" or "the Project"), with the rights to construct a 43MW wind farm located in Haute-Marne, approximately 65km northeast of the city of Dijon in France.

The Project has been developed by Envision and Velocita, who will continue to carry out the construction, and will consist of 17 Envision 2.5MW E-131 turbines. Construction is underway and the Project is expected to commence operations in Q1 2022. RES will provide asset owner engineer services during the construction period.

The Project will benefit from an attractive 20-year subsidy in the form of an inflation linked Contract-for-Difference with the utility company EDF, which fixes the price to be received for the power. As a result, the Project has no power price risk for the duration of the subsidy term. This acquisition represents the continuation of the Company's strategy to complement its balanced portfolio with different revenue characteristics to generate sustainable returns for shareholders, within TRIG's identified key markets.

Once constructed, the Project would represent approximately 1% of TRIG's portfolio value on a committed investment basis. Following this acquisition, the percentage of TRIG's assets which are in construction will be approximately 10%.

[steve73] 27/8/2020 04:55

Just adding a null-post to stop this thread as showing an unread message... I know.. I'm a nerd..!!

[davebowler] 07/8/2020 11:05

Liberum;
Event

TRIG's NAV per share at 30 June 2020 was 113.0p, representing a NAV total return of 1.2% in H1 2020 and 4.1% over the last 12 months. NAV performance was impacted by falling power prices, which led to a 6.3% reduction in the rebased portfolio value in the period. The overall portfolio total return in H1 was 3.1% due to positive contributions from a 0.2% reduction in the average discount rate (+1.5%), FX gains (+2.9%) and the balance of portfolio return (+5.1%). The latter includes the unwinding of the discount rate and enhancements from improved PPA terms, reduced maintenance costs on O&M contract renewals and strong production in the period.


The June valuation reflect a material reduction in near-term power price forecasts as a result of lower electricity demand and reductions in gas and carbon prices. The longer-term forecasts have also been reduced. In the GB and Euro jurisdictions, the average cannibalised capture price in the latest forecasts is £41 (GB) and £37 (Euro) per MWh for the period 2020-2024 and £44 (GB) and £48 (Euro) per MWh for the period 2025-2050 (real prices).

Season ahead power prices have fallen c.10% over the last six months and power demand is c.7% below expected demand without the impact of Covid-19 (10% below in the UK). However, demand has been increasing as lockdowns have eased. TRIG benefits from being diversified across five separate power markets. The portfolio has near-term protection in cash revenues from movements in wholesale power prices as the portfolio receives a high proportion of its revenue from fixed PPAs and government subsidies. 80% of 2020 revenues are expected to be fixed via subsidies or fixed PPAs. Fixed revenues are projected to comprise 74% of revenues over the next five years and 67% over the next 10 years.

At 30 June 2020 the portfolio comprised 74 assets, including 45 wind, 28 solar and one battery storage projects. Portfolio diversification benefited production in H1 2020. Production was 9% above budget for the half-year, due to a combination of wind and irradiation levels and good availability. Scandinavian and GB wind assets benefited from high wind resource in the period. The strong operational performance has contributed to the robust dividend cover of 1.25x in H1 2020 (H1 2019: 1.30x) despite the impact of lower power prices. TRIG's 6.76p target dividend for 2020 has been reaffirmed. Ongoing charges were 0.96% in H1 (annualised), demonstrating the advantages of the company's increased scale .


Acquisition activity slowed slightly in H1 following a record year in 2019, with £281m of new investments in the period (£347m in H1 2019). Acquisitions included large investments in Merkur, the 396MW operational German offshore wind farm with fixed revenues for the next 13 years. The company also decided not to proceed with its investment in Phase 2 if Erstrask, which would have required a €125m commitment. Construction had been delayed and the project has missed key milestones. There is no financial penalty for not proceeding with the investment and TRIG took no construction or delay risks. Phase 1 was also sold back to the developer in July. TRIG is well positioned to fund further acquisitions with net surplus cash of £30m following recent disposals and an undrawn £340m revolving credit facility.

Liberum view

The strong cash generation in H1 2020 has highlighted the resilience of the portfolio during a particularly volatile period across wider markets. TRIG's exposure to power prices is mitigated by the high proportion of fixed cash flows as a result of subsidy agreements and PPAs. Portfolio diversification has increased the amount of fixed revenues with projects in France and Germany benefiting from Feed in Tariffs. Fixes have been agreed for assets in other jurisdictions. This provides robust earnings visibility and underpins the dividend. The dividend remains well covered at 1.25x, (broadly in line with FY 2019) driven by strong production (9% ahead of budget). Forward power prices indicate a recovery in the second half of the year. TRIG is operating from a position of strength with a robust balance sheet and a confident outlook on revenue generation

[petewy] 02/7/2020 17:05

Thanks Dave. Good read

[brownbear3] 12/6/2020 11:03

https://www.euronews.com/living/2020/06/10/9-billion-competition-in-scotland-will-redefine-wind-power

[wetpantz] 30/5/2020 17:42

How will continuing falling costs of solar and wind equipment affect the sector? Won't the new projects undercut the existing installations when bidding for contracts? That would be falling revenues and less profitable new contracts. Barriers to entry are very low, especially in solar, I set up my own array with battery storage on the shed roof in a couple of days. Energy storage is interesting but very capital intensive and again low barriers to entry.

[jombaston] 28/5/2020 15:51

I think JLEN and TRIG go well together if you are looking to diversify.

TRIG is getting more and more outside the UK while JLEN is predominantly UK but diversified into waste/waste water, anaerobic digestion and hydro (as well as wind and solar).

TRIG seems better value right now, probably because they have just raised.

UKW is on my list but I am biding my time as it doesn't look particularly cheap relative to the others so hoping for a raise.

[petewy] 28/5/2020 12:08

Thanks Gateside JLEN looks interesting.