Renewables
Infrastructure
for a clean and
secure future
TRIG Annual Report 2024
2024 Highlights 2
At a Glance 4
Chair’s Statement 8
Creating Stakeholder Value 11
Key Performance Indicators 20
Market Trends 22
Investment Report 23
Market Developments 28
Operations Report 31
Sustainability 36
Valuation of the Portfolio 38
Financial Review 48
Viability Statement 54
Risk and Risk Management 56
TCFD 68
Strategic Report Disclosures 78
Governance
Compliance with the AIC Code 81
Board of Directors 82
Corporate Culture 86
Corporate Governance Statement 90
Committees of the Board 94
Audit Committee Report 96
Remuneration Committee Report 100
Report of the Directors 103
Directors’ Statement of Responsibilities 107
Financials
Independent Auditor’s Report to TRIG 109
Financial Statements 117
Notes to the Financial Statements 121
Appendices 149
Glossary 155
Directors and Advisers 156
Key Company Data 157
Strategic Report
1
Renewable energy
is essential to
promote energy
security and for the
decarbonisation
of economies.
TRIG develops, constructs
and operates a portfolio
of renewable energy
infrastructure that creates
value for its shareholders
and generates secure, clean
electricity that benefits
both society and the
environment.
2
TRIG Annual Report 2024
A resilient portfolio
of renewables infrastructure
2024 Highlights
This Annual Report and Financial Statements contain Alternative Performance Measures
(“APMs”), which are financial measures not defined in International Financial Reporting
Standards (“IFRS”). The definition of each of these measures is shown on page 53.
1 The NAV per share as at 31 December 2024 is calculated on the basis of the
2,463,893,326 Ordinary Shares in issue as at 31 December 2024 (see Note 11) plus
a further 881,732 Ordinary Shares to be issued to the Managers in relation to part
payment of the Managers fee for H2 2024 (see Note 17).
2 The 7.47p per share dividend delivered related to performance during the 2024 financial
year. The 7.55p is a dividend per share target for financial performance during 2025.
This is a target only and not a profit forecast, and there can be no assurance that this
target can or will be achieved. It should not be seen as an indication of the Company’s
expected or actual results or returns.
3 This is the distributable cash flow figure reported on an Expanded basis shown in the
Financial Review section on page 48, divided by the weighted average number of shares
in issue during the year of approximately 2,475.1 million shares.
4 Dividend cover reported on an Expanded basis, being distributable cash flow divided
by dividends paid during the period. Please refer to the Financial Review section for
an explanation of the Expanded basis. The figure of 1.0x (2023: 1.6x) is stated after
repayments of project debt and is on the basis of dividends paid during the year.
Dividend cover is stated before the impact of profits on disposal, which would increase
net dividend cover to 1.06x.
5 On an Expanded basis. Please refer to the Financial Review section for an explanation
of the Expanded basis.
6 Includes repayments of project-level debt of £206m (2023: £219m) and £55m (2023:
£34m) of revolving credit facility drawings during the year. Additionally, £85m of value
has been achieved from the part disposal of Gode which exchanged in 2024, with a
completion notice issued in February 2025 and cash proceeds due to be received on
5 March 2025. Once received, cash proceeds from the part sale of Gode will be available
to further reduce RCF drawings.
7 Calculated as a percentage of enterprise value.
7. 5 p
Distributable cash flow
per share
3
(2023: 11.4p)
1.0x
Net dividend cover
4
(2023: 1.6x)
7. 55 p
2025 Dividend target
2
(2024 target: 7.47p)
-4.7p
Earnings per share
(2023: 0.2p)
115.9p
Net asset value
(NAV) per share
1
(2 0 2 3: 127.7p )
£2,856m
Net assets
(2023: £3,174m)
£3,116m
Directors’ portfolio
valuation
5
(2023: £3,509m)
£340m
Debt reduction & value
achieved on partial sale
of Gode
6
(2023: £253m)
37%
Portfolio gearing
(2023: 37%)
7
Self-funded capacity growth
Commissioned in Q1 2024 and comprising 39 onshore
wind turbines, each 170m tall
Projects commissioned
Seven planning approvals received and
ten land agreements signed
Fig Power, UK
Preferred turbine supplier
selected for repowering; site
capacity being increased
to 25MW
Construction progressing in
line with schedule, targeting
grid energisation in H2 2025
Cuxac, France
12 mw
Development progress
Ranasjö and Salsjö, Sweden
242 mw
Ryton, UK
74 mw
3
TRIG Annual Report 2024
Strategic Report Governance Financials
The price for 828GWh generation output in 2025 has been fixed by
the Managers across GB & Northern Ireland and Spain
Vortex generators being added to an operational turbine
to further improve aerodynamic performance. See the
Enhancements section on page 34 for further details.
Active revenue management Strategic portfolio rotation
Operational excellence
Acquisitions
Divestments: 10% average premium to carrying value
Onshore wind – sold Q1 2024 Onshore wind – sold Q1 2024
Offshore wind –
15.2% stake sold Q3 2024
The Managers are progressing
further divestment opportunities
Malabrigo, Spain Fig Power, UK
Pallas, Ireland
52 mw
Little Raith, UK
25 mw
Forss, UK
8 mw
Gode, Germany
330 mw
Battery Storage Platform and Developer – 400MW pipeline
capable of reaching FID by 2030. First project from pipeline has
pre-qualified for the Capacity Market auction
Roos, UK
4
TRIG Annual Report 2024
At a Glance
Read more on page 92.
A commitment to sustainability
A depth of management experience
1.7m
Number of homes the
portfolio is capable of
powering with clean
energy
1
(2023: 2.1m)
53
Number of active
Environmental
Enhancement Projects
within the portfolio
(2023: 38)
46
Number of community
funds within the
TRIG portfolio
(2023: 42)
0.23
Lost Time Accident
Frequency Rate
(2023: 0.09)
TRIG is managed by its Investment Manager, InfraRed, and its Operations Manager, RES,
with oversight provided by an independent Board of non-executive Directors.
Independent Board Investment Manager Operations Manager
Our portfolio of assets is geographically and
technologically diverse and consists of operational
onshore and offshore wind farms, solar parks and
battery storage projects in the UK and mainland Europe.
Learn more at www.trig-ltd.com
Read more about our investment portfolio on page 45.
1 Based on budgeted generation of the committed portfolio as at 31 December 2024. Calculated in accordance with the IFI Approach to GHG Accounting for Renewable Energy
to aid comparison with other industry participants. Equivalent figure based on actual generation for 2024 is 1.6m homes (equivalent) powered during the year.
2 Operational TRIG sites engaged in pro-active habitat management plans that exceed standard environmental maintenance.
Preserve our natural environmentMitigate adverse climate change
Positively impact the
communities in which we work
Maintain ethics and
integrity in governance
5
TRIG Annual Report 2024
Strategic Report Governance Financials
TRIG has an 11-year track record, of providing a resilient
and growing dividend to shareholders. Through active
management of a diversified operational portfolio and a
self-funded development pipeline, TRIG has a clear route
todelivering long-term earnings and cash flow growth.
A strong investment proposition
Diversification
Our shares provide liquid
access to a 2.7GW diversified
portfolio of over 80 renewables
infrastructure assets, with
5.9TWh
of clean electricity generated
in 2024
Decarbonisation
In 2024, our portfolio generated
enough clean energy to avoid over
2.0m
tonnes of carbon emissions
Self-funded growth pipeline
1GW
of projects within the portfolio that
could enter construction by 2030
Yield
A resilient dividend
7. 55 p
per share dividend
target for 2025
1
Inflation correlation
Over the next ten years
60%
of projected portfolio
revenues are directly
linked to inflation
Prudent capital structure
Average cost of debt:
3.5%
The vast majority of debt
is fixed rate and amortising over
duration of the subsidy period
These returns are generated by TRIG’s Managers
through theactive management of our portfolio of
renewables infrastructure that is diversified across
technologies, geographiesand revenue types.
TRIG’s two Managers, InfraRed and RES, bring
extensive expertise in investments and operations
tothe delivery of theCompany’s business model.
The Managers create value for shareholders through:
– The successful delivery of development and
construction projects through to operations
– Rotation of the portfolio to maximise investment value
– Implementation of revenue and operational
enhancements.
1 The 2025 target represents an 8.8% dividend yield when referenced to the share price at 31 December 2024. The 2025 target should not be seen as an indication of the Company’s
expected results or returns.
6
TRIG Annual Report 2024
England & Wales 35%
Scotland 23%
N. Ireland
3
3%
Spain 7%
Germany 8%
France 9%
Sweden 15%
1. Hornsea One 10%
2. Jädraås 7%
3. Merkur 7%
4. Beatrice 6%
5. East Anglia One 6%
6. Garreg Lwyd 4%
7. Grönhult 3%
8. Solwaybank 3%
9. Ranasjö 3%
10. Sheringham Shoal 3%
Other projects 49%
Balance does not cast due to rounding
1 Segmentation by portfolio value as at 31 December 2024 on a fully committed basis.
2
Co
lours indicate jurisdiction / power market. Excludes the 15.2% stake in Gode Offshore Wind Farm divested during 2024,
which completed post-period end.
3
Nor
thern Ireland and the Republic of Ireland form a Single Electricity Market, distinct from that operating in Great Britain
Read more about our investment portfolio on page 45.
TRIG owns a large, diversified portfolio of renewable
energy investments, providing investment exposure to
established renewables technologies across the United
Kingdom (UK) and mainland Europe.
Income from the Company’s portfolio is correlated to
inflation both through subsidies and exposure to energy
prices. Disciplined debt management ensures that the
portfolio has minimal cash flow exposure to changes
in interest rates or refinancing risk.
Multiple
countries
2,3
Contracted (inflation linked) 60%
Contracted (non-inflation linked) 10%
Wholesale power price 30%
Low
single asset
concentration
3
At a Glance continued
A diversified investment portfolio
1
Onshore Wind
48%
Offshore Wind
32%
Revenues to
Dec 2029
7
TRIG Annual Report 2024
Strategic Report Governance Financials
Solar PV
14%
Flexible Capacity
6%
8
TRIG Annual Report 2024
Chair’s Statement
TRIG has continued to make meaningful
progress on its strategic aims despite
macroeconomic headwinds. The
Company’s prudent capital structure
provides a strong foundation to finance
our growth opportunities and offer a
compelling financial return proposition.
The Company delivered on its 2024 capital
allocation priorities, including payment
of £184m to shareholders in dividends,
commencement of a £50m share buyback
programme, reduction of debt across the
group by £340m (following completion of
the post year-end Gode disposal)
1
and
reinvestment of £48m.
The underlying performance and cash
generation of TRIG has been robust; however,
the performance of TRIG’s share price
over the past year has been disappointing.
Much of the share price movement has
been driven by macroeconomic and political
factors. Nonetheless, the Board recognises
the need to continue action in respect of
that which is within the Company’s control.
As announced on 11 February 2025:
– The Board is increasing the dividend target
to 7.55p per share for 2025. This takes the
total increase in the Company’s dividend
over the past three years to over 10%.
– The Board is increasing the scale and
pace of the Company’s share buyback
programme from £50m to £150m.
– The Managers have delivered c.£210m
disposals over the past 24 months at an
average 11% premium to carrying value.
The Board is pleased to report that the
Managers are progressing a further
£300m of disposals and financings to
take advantage of the disconnect between
private and listed investment markets,
to fund the enhancement of returns
to shareholders.
TRIG’s operational cash flows
2
remain robust
with £390m generated during the year from
5.9TWh clean electricity produced by the
portfolio. Four divestments totalling £185m
were signed in 2024 at an average 10%
premium to carrying value, demonstrating
the Company’s active approach to
balance sheet management and portfolio
insurance proceeds are received. The power
price outlook for 2025 is improved compared
to 2024, with attractive revenue fixes struck
for the coming year.
TRIG’s Investment Manager takes a
conservative approach to portfolio
construction and balance sheet management:
– The portfolio benefits from the direct
inflation linkage of over half of its projected
revenues over the next ten years.
– 80% of forecast revenues are fixed per
unit of electricity generated for the next 12
months and 70% over the next ten years,
respectively. This provides TRIG with
strong recurring revenue visibility to fund
shareholder returns and growth objectives.
– TRIG also has limited exposure to higher
interest rates with c.90% of debt being
fixed rate, at an average interest rate of
3.5%, and fully amortising, with £425m
having been repaid over the last two years
and over £900m of debt scheduled to be
repaid over the next five years.
The Company’s Net Asset Value per share
at 31 December 2024 was 115.9p, with
macro and external factors being the largest
component of the 11.8p reduction to the prior
year. Earnings per share for the year were -4.7p
per share, reflecting the reduction in valuation.
Macro factors that have weighed on the
valuation include slightly lower power price
forecasts, increased valuation discount
rates for UK assets and lower 2024 outturn
inflation. Other items that have reduced
NAV per share include: impacts in relation to
external grid and transmission infrastructure,
including the impact of the third party cable
failures in the year at the Hornsea One and
East Anglia One UK offshore wind projects
which are now repaired; the annual review of
operational assumptions including asset level
energy yields; and the impact of lower than
forecast actual generation and power price
construction, and highlighting the continued
disconnect between TRIG’s share price and
the robust underlying portfolio performance.
While the macroeconomic environment
continues to weigh heavily on share prices,
resulting in persistent discounts to Net Asset
Values, an investment at TRIG’s share price
at 31 December 2024 would have an implied
long-term annualised return of 11%.
3
The
Board believes this represents compelling
risk-adjusted value for investors, including a
dividend yield of 10.3%.
7
With an excellent
track record of income growth, opportunities
for future capital appreciation, and a 1GW
development pipeline, TRIG is well placed to
provide attractive total returns to shareholders.
TRIG’s large, high-quality £3bn portfolio
of renewables infrastructure is diversified
across technologies, geographies and
power markets, enabling its Managers to
pivot investment decisions to where they see
best value and to mitigate risks associated
with any one segment of the market. The
operational portfolio has a capacity of
2.3GW, and during 2024 generated enough
electricity to power 1.6m homes and
displace 2.0m tonnes of CO
2
per annum.
Financial performance
TRIG generated strong cash flow in 2024
through robust operations supplemented by
selective disposals. Operational cash flow of
£390m represents gross cash cover of 2.1x
the 2024 dividend, or 1.0x net dividend cover
after the repayment of £206m of portfolio-
level debt across the Group.
4
Portfolio
distributions were impacted by lower power
prices in 2024 compared to recent years
as well as grid outages. These two factors
moderated dividend cover for the year, and
whilst the offshore cable outages have been
repaired, there is typically some time-lag
before commercial protections such as
1 Includes repayments of project-level debt of £206m (2023: £219m) and £55m (2023: £34m) of RCF drawings during the year. Additionally, £85m of value has been achieved from the part disposal of
Gode which exchanged in 2024, with a completion notice issued in February 2025 and cash proceeds due to be received on 5 March 2025. Once received, cash proceeds from the part sale of Gode
will be available to further reduce RCF drawings.
2 On an Expanded basis. Please refer to the Financial Review section for an explanation of the Expanded basis. Operational cash flow generated is reconciled to the cash flow statements as follows:
cash received from investments £238m less Company (including its immediate subsidiaries TRIG UK and TRIG UK I) expenses £53m plus project-level debt repayments £206m. Note: this measure
excludes profits on disposals of £9m received during 2024, with which gross cash cover would be 2.2x and net dividend cover would be 1.06x.
3 Portfolio discount rate less ongoing charges, adjusted for share price discount to NAV at the 31 December 2024 of 29%.
9
TRIG Annual Report 2024
Strategic Report Governance Financials
We have also made key strides in respect of
power price management with attractive fixes
struck in Great Britain (GB), France, Spain
and Sweden. These include a three-year
power purchase agreement (“PPA”) to supply
a green hydrogen provider in France and a
ten-year agreement to sell Guarantee of Origin
certificates in Sweden, both at pricing above
levels assumed in the portfolio valuation.
The Company’s principal risks are monitored
by the Board and the Managers and
mitigated as appropriate. TRIG continues
to have four enduring principal risks with
a high residual impact which are: political
/ regulatory risk; power prices; production
performance and counterparty credit. These
and other risks are considered and expanded
on in the Risk and Risk Management section.
Capital allocation
and dividend
The Board and Managers’ capital allocation
priorities remain to pay an attractive,
progressive dividend and maintain a
robust balance sheet. Thereafter, accretive
investment opportunities are considered,
which include share buybacks that set a
high investment hurdle rate at the prevailing
share price.
I am pleased to report a dividend target of
7.55p per share for 2025, an increase of
1.1% above the 2024 level. This increase is
consistent with our policy of increasing the
dividend to the extent it is prudent to do
so,
6
while retaining the flexibility to invest for
attractive capital growth and the desire to
build dividend cash cover. The 2025 dividend
target represents a 10.3% yield
7
to TRIG’s
closing share price on 21 February 2025.
Divestment proceeds have been applied
to reducing floating rate drawings on the
Company’s revolving credit facility (“RCF”). It
is expected that proceeds will be received in
early March 2025 from the sale of a 15.2%
stake in Gode offshore wind farm, which was
announced 1 August 2024, and upon receipt,
the RCF balance will reduce to c. £230m.
RCF drawings are expected to be reduced
to £100m during 2025 using proceeds from
divestments, refinancings and projected
retained cash.
Given our robust cash position and the
persistent discount to Net Asset Value
during the year, the Board is increasing the
scale and pace of the Company’s share
buyback programme from £50m to £150m,
recognising the attractive investment
opportunity of acquiring TRIG’s shares
when trading at their current discount to
Net Asset Value. Between commencement
of the programme on 9 August 2024 and
24 February 2025, the Company has
purchased 36m of its own shares for a total
consideration of £33m.
Governance
Good governance is an important tenet
of the Board. Following the conclusion of
the Board’s succession plan in 2023, the
Nomination Committee commissioned
an external evaluation of the Board’s
effectiveness in the year, in advance of
the typical three-year cycle. The external
evaluator reported no material findings,
and a number of their constructive
recommendations have been adopted to
further enhance the Board’s operation.
during the year. The Company has benefitted
from gains from revenue fixes and profits on
divestment as well as accretion from share
buybacks in the year.
Active management
The wide-ranging capabilities of the
Company’s Managers, InfraRed and RES, is
a key strength of TRIG. They adopt an active
asset management strategy that is unique
and valuable in the renewables investment
company peer group. In addition to core
investment and operational capabilities, their
team includes specialists in development
stage investing, oversight of platform
investments, operational enhancements and
revenue management, each of which created
value in the year.
Key development milestones were achieved
with the Ryton battery project in the UK on
track to be commissioned in H2 2025, the
grid connection date for the Spennymoor
battery project in the UK being successfully
accelerated from 2031 to 2026 and the
repowering of Cuxac onshore wind farm in
France having selected the preferred turbine
supplier. Seven planning approvals were
received in relation to the wider batteries
pipeline. Nonetheless, and in recognition of
the share price, the Managers are deferring
final investment decisions and investment
spend where possible.
TRIG acquired its first development platform
during the year, Fig Power, a UK energy
projects developer with a focus on battery
storage, enhancing portfolio diversification
and continuing TRIG’s strategic evolution.
Fig Power’s near-term pipeline of 400MW
has been integrated into the TRIG portfolio
and takes the development pipeline to
1GW capacity that could enter construction
by 2030. These value-add opportunities
are expected to be organically funded and
have the potential to provide attractive
risk-adjusted returns by leveraging the
Managers’ expertise in flexible capacity
5
and development and construction projects.
We continue to harness RES’s operational
and commercial capabilities to enhance and
optimise performance of existing assets. For
example, RES is installing aerodynamic blade
hardware and software enhancements to
increase the energy yield across 69MW of
capacity, with internal calculations indicating
an increase of up to 6%. Agreements have
been reached to roll-out the same software
upgrades to a further 4 sites totalling
76MWcapacity, and we are excited by
thereturn potential.
4 The Company, TRIG UK, TRIG UK I and its portfolio of investments are known as the “Group”.
5 Flexible capacity is generation technologies that can store energy and respond to electricity demand levels and pricing signals, such as batteries, pumped hydro storage and green hydrogen.
6 The Company’s dividend policy is to increase the dividend when the Board considers it prudent to do so, considering forecast cash flows, expected dividend cover, inflation across TRIG’s key
markets, the outlook for electricity prices and the operational performance of the Company’s portfolio.
7 The 2025 target represents a 10.3% dividend yield when referenced to the share price of 73.6p per share at 21 February 2025. The 2025 target should not be seen as an indication of the
Company’s expected results or returns.
Venelle, France
10
TRIG Annual Report 2024
As announced in February 2024, Richard
Crawford stepped down from leading the
day-to-day investment management of TRIG
in the summer when he retired from full-time
employment. TRIG continues to benefit from
Richard’s experience through his ongoing
membership of TRIG’s Investment and
Advisory Committees. Richard handed his
responsibilities to Minesh Shah as part of
a well-planned and smooth transition.
The management team continues to engage
with energy sector and financial regulation
consultations. This includes significant
engagement with government and industry
participants on the UK’s Review of Electricity
Market Arrangements and on cost disclosure
regulations stemming from Packaged Retail
and Insurance-based Investment Products
(PRIIPs) and Market in Financial Instruments
Directive II (MiFID).
As part of the Review of Electricity Market
Arrangements (REMA) consultation, the UK
Government is considering either reforming
the existing national market or the introduction
of zonal pricing. Zonal pricing would involve
setting electricity prices in several locations
on the transmission grid, rather than having
a single nationwide wholesale price. We and
other market participants have written to the
UK Government expressing our concerns in
respect of zonal pricing, including creating
uncertainty that could jeopardise the UK
Government’s objective to deliver a rapid
and low-cost energy transition.
The Board was pleased to see the FCA’s
forbearance in respect of cost disclosures
in the autumn; however was disappointed
that its principles were not adopted by all
market participants. The Investment Manager
is engaging with the FCA and industry to
seek that the replacement CCI legislation
is implemented in the same spirit as was
intended by the forbearance. In line with
Financial Conduct Authority (FCA) statements,
TRIG has adopted a zero-charges MIFID
disclosure on the basis that it does not levy
charges on its shareholders with detail on the
operating expenses of the Company provided
in this Annual Report and Accounts.
The Board has continued to meet with
shareholders through individual meetings,
group site visits and at the Company’s AGM.
Over the course of the last year, the Board
and the Managers have been in discussions
in relation to the services provided to TRIG
under the management agreements and the
fees paid to the Managers. Management
fees has also been a subject of discussion
in the regular cycle of meetings between
shareholders and the Chair and Senior
Independent Director of the Board.
As of 1 April 2025, rather than being
applied to adjusted portfolio value, the new
management fee will instead be applied to
an equal weighting of (i) the average of the
closing daily market capitalisation during each
quarter and (ii) the published Net Asset Value
for the quarter. At the prevailing share price,
the changes would entail a 28% reduction
in the annualised, ongoing management fee
compared to that paid in 2024. The changes
agreed further align the Managers with TRIG’s
strategy and the interests of shareholders.
Recognising the priority of realising capital to
enhance shareholder returns, the IMA and
OMA will now include a transaction fee that
would apply to future disposals and certain
other transactions. Qualifying transactions
would be subject to Board approval.
Importantly, the combination of the ongoing
management and transaction fees payable
for the sale of individual assets and the
raising of new debt finance will not exceed
the quantum the management fee would
have been under the present arrangements.
In order to incentivise the Managers to
achieve the best result for shareholders
in the event of a takeover or an equivalent
asset sale, the Board has agreed a fee
payable to the Managers of 3% of the value
achieved in excess of Net Asset Value and
3% of the value achieved in excess of market
capitalisation (pro-rated accordingly in
relation to an equivalent asset sale).
These terms are subject to documentation
and, where applicable, regulatory
requirements.
Outlook
Looking forward, we remain confident that
the themes of decarbonisation and energy
security in Europe, which underpin the sector’s
attractiveness, will endure. TRIG’s 2.3GW
operational portfolio continues to support
these goals and our 1GW 2030 pipeline of
proprietary development projects provides
opportunities to displace fossil fuel generation
further, deliver earnings growth and contribute
to attractive shareholder returns.
We are conscious that the sustained
share price discounts to Net Asset Values
experienced across the sector over the past
18 months have materially impacted investor
returns. The disciplined capital allocation
strategy we have outlined of asset recycling
and accretive investments, including share
buybacks, can provide returns growth without
dependence on equity capital markets for new
funding. TRIG is well positioned in this regard
with its robust balance sheet, resilient portfolio
and expert management team, as well as
providing scale and liquidity for shareholders.
Richard Morse
Chair
24 February 2025
Read more about our Board on page 82.
Chair’s Statement continued
Broxburn, Scotland
We seek to protect and grow the income from and the capital
value of TRIG’s portfolio through active management and
new investments. This is achieved through the expertise
of TRIG’s Managers, InfraRed and RES.
Our Management Structure
Phil George
Chief Financial Officer
Key roles
11
TRIG Annual Report 2024
Strategic Report Governance Financials
Independent
Board of Directors
Manage the governance of the
Company, in the interests of
shareholders and other stakeholders
Monitor adherence to the Investment
Policy and corporate policies
Determine the risk appetite of the
Group (the Company, all of its
subsidiaries, and investments)
Monitor the performance of
the Investment Manager, the
Operations Manager and other
key service providers
See the Board of Directors
section for biographies of
the TRIG Board.
Operations Manager
Renewable Energy
Systems Limited
See page 14 for more detail
on the Operations Manager.
Investment Manager
InfraRed Capital Partners
Limited
See page 12 for more detail
on the Investment Manager.
25+
Years track record
40+
Years of operation
Minesh Shah
Managing Director
David Bruce
Director, Operations
Management
Chris Sweetman
Chief Operations
Officer
12
TRIG Annual Report 2024
Key roles
Overall responsibility for day-to-day management
Advising the Board on strategy and dividend policy
Sourcing, transacting and approving
new investments
Investment decisions under delegated authorities
from the Board, including in relation to new
investments, divestments and development activities
Origination and execution of electricity
sales opportunities
Capital raising, investor relations and
investor reporting
Risk management and financial administration
Appoints all members of the Investment Committee
InfraRed Capital Partners is an international
infrastructure asset manager, with more than
160 professionals operating worldwide from
offices in London, Madrid, New York, Sydney
and Seoul. Over the past 25 years, InfraRed
has established itself as a highly successful
developer and steward of infrastructure assets
that play a vital role in supporting communities.
InfraRed manages US$13bn of equity capital
1
for investors around the globe, in listed and
private funds across both core and value-add
strategies.
www.ircp.com
InfraRed Capital Partners Limited
(“InfraRed”) is TRIG’s Investment
Manager. InfraRed has day-to-day
responsibility for the investment
management of TRIG.
Our Investment Manager
13
TRIG Annual Report 2024
Strategic Report Governance Financials
1 Uses five-year average FX as at 30 June 2024 of GBP / USD of 1.2821; EUR / USD 1.1141.
EUM is USD 12.741m.
2 Information on the Principles for Responsible Investment (“PRI”) ratings are available at
https://www.unpri.org/about-the-pri.
5
*
PRI rating
2
for
infrastructure achieved
for ten consecutive
assessments
160+
Strong expert team made up
of 25+ nationalities
$13bn
equity under
management (USD)
25+
years track
record
14
TRIG Annual Report 2024
Key roles
Managing performance of the portfolio
Collaborating with asset managers to target best
practice Health and Safety and ESG
Advising on and implementing the electricity
sales strategy
Securing portfolio scale benefits
Identifying and driving technical and commercial
value enhancements
Delivering high-quality project governance
Supporting technical due diligence for potential
acquisitions (where RES is not the seller)
Appointing senior individuals to the Advisory
Committee alongside InfraRed
Appointing experienced personnel to act as
directors on all project companies
TRIG benefits from a right of first offer on RES’s
UKand Irish pipeline of new generation assets
RES is the world’s largest independent
renewable energy company and is active in
wind, solar, energy storage, green hydrogen,
transmission, and distribution. An industry
innovator for over 40 years, RES has delivered
more than 27GW of renewable energy projects
across the globe and supports 41GW of
renewable assets worldwide across 1,300
sites. RES employs over 4,500 people across
24 countries, including teams of personnel in
every country in which TRIG is invested.
www.res-group.com
Our Operations Manager
Renewable Energy Systems Limited
(“RES”) is TRIG’s Operations
Manager. RES’s dedicated
management team undertake
the day-to-day monitoring and
oversight of operations for the
Group’s portfolio of investments.
RES draws upon a wide range of
specialist expertise from across
their business, in addition to having
renewables professionals to act as
TRIG project Company Directors.
27GW+
projects developed
and / or constructed
15
TRIG Annual Report 2024
Strategic Report Governance Financials
41GW+
Operational assets
supported
40+
Years of experience
The RES factor
DNV, a leading independent energy expert, analysed RES’s
performance against industry peers. DNV found that projects for
which RES is the asset manager, perform roughly 1% better than
the industry standard – enabling its clients to achieve £25 million
increase in revenue for every GW installed. RES is the asset
manager for 35 of the 85 projects owned by TRIG.
RES achieves this advantage through a holistic approach to
renewables investments, with the capabilities to provide
end-to-end services across the full lifecycle of every project.
Beyond the headline figure, this advantage speaks to the deep
commitment to optimising every facet of TRIG’s assets. RES’
holistic approach, encompassing everything from the initial
development to long-term operations allows them to identify
and capitalise on every opportunity.
RES Safety Focus Event
RES’ commitment to the highest safety standards is
exemplified through the annual RES Safety Focus Event.
In 2024 over four thousand colleagues across 24 countries
all stood down for one day to receive safety training from
industry leaders. This event benefits the whole industry,
improving the awareness of safety for employees and
improving safety performance, something that has been
seen year on year since the events were first held.
4,500+
employees across
24 different countries
16
TRIG Annual Report 2024
2
to deliver on
our strategy...
1
Our investment
criteria…
Our strategy is to provide shareholders with
attractive, long-term returns by:
Delivering long-term,
resilient dividends
Annual aggregate distributions to
shareholders of at least that achieved
in the prior year, cash covered and supported
by long-term cash flow projections
Growing Net
Asset Value
Active management to preserve
and grow the capital value
of the investment portfolio
Managing risk through
portfolio diversification
High-quality renewables and supporting
infrastructure assets spanning different
technologies and European geographies
Managing prudently
and efficiently
A self-funded growth strategy
built on a conservative balance sheet
management approach
We invest in infrastructure that generates electricity
from renewable energy sources, with a particular
focus on wind farms and solar photovoltaic (PV) parks.
The Company also invests in proven technologies
that support the energy transition, including flexible
capacity such as battery storage.
Key investment policies
Investments are made in the UK
and European countries, with up to 65%
of the Portfolio Value invested in projects
that are located outside the UK
Investments are predominantly made
in wind farms and solar projects, with
other energy technologies, such as flexible
capacity, limited to 20% of Portfolio Value
Up to 25% of the Portfolio Value may be
investedin development or construction projects
No more than 20% of Portfolio Value
may be invested in any single project
Short-term debt limited to 30% of the
Portfolio Value and long-term debt limited
to 50% of the Gross Portfolio Value
The key policies above provide a summary of the parameters within
which investments are made. The full wording of the Investment
Policy can be found on the Company’s website: www.trig-ltd.com/
about-us/why-invest-with-trig/business-model/investment-policy.
Our Business Model
17
TRIG Annual Report 2024
Strategic Report Governance Financials
Responsible investment
Balanced portfolio
Operational excellence
3
through a sustainable
approach to value creation…
4
for the benefit our
key stakeholders
Our investments in renewable
energy infrastructure bring benefits
to a range of stakeholders
The three pillars of TRIG’s business model are
shown below. See the next page for more detail.
Shareholders
Partners
Local communities
Suppliers
Customers
Government
and authorities
TRIG’s Board and its Managers place responsible
investment practices, a strong health and safety
culture and sustainability considerations at the
heart of TRIG’s business, as they are core to a
successful business model over the long term.
See page 21 for more detail. See the next page for more detail.
18
TRIG Annual Report 2024
Our Business Model continued
Responsible investment
Balanced portfolio
Operational excellence
TRIG seeks to enhance the
long-term resilience of shareholder
returns in three ways:
How we create value
Responsible
investment
InfraRed applies a disciplined
approach to capital allocation,
investment activities and
portfolio management
Decision-making that is
focused on delivering attractive
shareholder returns and integrates
sustainability considerations
Proactive engagement with
shareholders, lenders and the
wider investment community
Operational
excellence
Active asset management
by RES that targets both the
preservation and the enhancement
of investment value, whilst also
considering ESG opportunities
and risks
Disciplined approach to the
development of new projects and
the delivery of construction projects
Being a good neighbour and
tenant through community
engagement and minimising the
impact on the natural environment
Balanced
portfolio
TRIG provides shareholders
with access to a 2.7GW
diversified portfolio of renewables
infrastructure investments
managed by an expert team
TRIG’s portfolio diversification
supports the management of risk
across power markets, regulatory
frameworks, weather patterns
and technologies
A well-diversified portfolio helps
improve the resilience of financial
performance and contributes to
attractive shareholder returns
Jadraas, Sweden
19
TRIG Annual Report 2024
Strategic Report Governance Financials
Our stakeholders
Shareholders
Who they are
We invest in renewables infrastructure assets using the
capital provided by our investors. Shareholder interaction
is a critical component of good governance.
Expectations of TRIG
– Delivery of attractive, resilient returns
– Active portfolio management from investment and
operations specialists
– Responsible investment practices and application of
ESG principles
2024 Engagement
– Over 100 Investor meetings held
– Site visits held for institutional investors
Investment partners
Who they are
TRIG benefits from co-investing alongside several joint
venture partners, some of which are developers and
vendors, others are purely financial co-investors.
Expectations of TRIG
– Alignment on key issues and decisions where possible
– Transparency, open communication and cooperation
2024 Engagement
– Disposal of four assets
– Signing of Sheringham Shoal extension agreement
– Engagement with investment industry groups in relation
to public policy
Local communities
Who they are
Renewables assets are embedded in rural communities
which may experience limited employment options and social
/ health facilities. We are sensitive to the potential impact of
our investments.
Expectations of TRIG
– Projects should do no significant harm to the lives and
environment of those living in close proximity to an asset
– Owners / operators of the asset should interact with the
community where appropriate
2024 Engagement
– Three new Local Electricity Discount Schemes (LEDS)
established in the UK
– Four new community funds established in the year
Suppliers
Who they are
Key operational suppliers include original equipment
manufacturers (OEMs), spare part providers and independent
service providers. Also included are corporate suppliers such
as advisers, administrator and corporate lenders among others.
Expectations of TRIG
– For TRIG to fulfil its role and obligations under the relevant
supply contracts
– Transparency, open communication and cooperation
2024 Engagement
– Procurement contracts signed for the Ryton battery
storage project
– ESG considerations within procurement of batteries within
the Phoenix mezzanine loan
Customers
Who they are
TRIG’s key customers are companies that buy clean
electricity and its associated benefits. These offtakers pay
for and receive the output from our portfolio assets.
Expectations of TRIG
– Reliable infrastructure that is available to generate electricity
– Comply with industry codes and regulations
– Supply of embedded benefits where contracted, such as
Renewables Certificates
2024 Engagement
– French Green Hydrogen offtake agreement signed
– The price for 828GWh generation output in 2025 has
been fixed by the Managers across GB, Northern Ireland
and Spain
Government and authorities
Who they are
Government bodies and regulators play a key role in energy
security, the viability of renewables and the path to net zero.
Expectations of TRIG
– TRIG to operate within the relevant legislation
– TRIG’s Managers to engage in relevant public
policy discussions
2024 Engagement
– Investment company cost disclosure campaigning
– Engagement on REMA
20
TRIG Annual Report 2024
Dividends
7.47p
202 3: 7.18p
Aggregate interim dividends declared
per share for the year.
2021
2022
2023
2024
2020
6.76p
6.84p
7.18p
7.47p
6.76p
Net Asset
Value (NAV) return
7.6%
2023: 8.4%
Annualised internal rate of return
since IPO based on NAV per share
appreciation plus dividends paid.
2021
2022
2023
2024
2020
7.6%
8.3%
9.5%
9.1%
8.4%
Dividend yield
8.7%
2023: 6.6%
Aggregate interim dividends declared
per share for the year expressed as a
percentage of closing share price for
the year.
2021
2022
2023
2024
2020
8.7%
5.3%
5.1%
5.5%
6.6%
Dividend cover
2021
2022
2023
2024
2020
1.1x
1.5x
1.6x
1.0x
1.1x
2.1x
2.6x
2.8x
2.1x
2.0x
Operating
expenses ratio
1.04%
2023: 1.04%
Annualised ongoing operating expenses
(i.e., excluding acquisition costs and
other non-recurring items) divided by
the average published undiluted NAV
in the period.
2020 0.94%
2021
0.97%
2022 0.93%
2023 1.04%
2024 1.04%
Key Performance Indicators
The metrics below measure
TRIG’s financial performance
including the results for the
year ended 31 December 2024:
1 Net dividend cover is calculated as distributable cash flow divided by Dividends paid in the year. Gross cash cover is this figure prior to the repayment of project level debt.
Note: this measure excludes profits on disposals of £9m received during 2024, with which gross cash cover would be 2.2x and net dividend cover would be 1.1x.
2.1x
2023: 2.8x
Gross cash cover prior to project level
debt repayments and net dividend
cover during the year
1
. Reported on an
Expanded basis.
1.0x
2023: 1.6x
Gross Net
Net
Gross
21
TRIG Annual Report 2024
Strategic Report Governance Financials
Total Shareholder
Return
4.5%
2023: 7.1%
Annualised internal rate of return since IPO
based on the share price at the beginning
and end of the financial year together
with dividends per share reinvested in the
Company (share price basis).
2021
2022
2023
2024
2020
9.5%
8.7%
7.1%
4.5%
9.3%
Gearing
37%
2023: 37%
Project-level gearing as a percentage of
enterprise value (calculated as Portfolio
Value plus project-level debt).
2021
2022
2023
2024
2020
40%
38%
37%
37%
43%
Construction and
Development Exposure
6%
2023: 7%
Percentage of Portfolio Value, including
investment commitments, represented
by construction / development assets
where TRIG retains construction or
development risk.
2021
2022
2023
2024
2020
11%
8%
7%
6%
6%
Investments made
£48m
2023: £92m
Value of investments made
during the year.
2021
2022
2023
2024
2020
£479m
£694m
£92m
£48m
£588m
Divestments
£104m
2023: £22m
Value of projects divested during
the year.
2021 £0m
2022 £0m
2023 £22m
2024 £104m
2020 £0m
Investment
concentration
51%
2023: 49%
Percentage of Portfolio Value, including
investment commitments, represented
by the ten largest investments and single
largest investment.
2021
2022
2023
2024
2020
51%
49%
49%
51%
57%
Market Trends
22
TRIG Annual Report 2024
Electrification of demand
As abundant green electricity supplied by wind and solar
power is brought online, there is a public policy desire
to electrify traditionally hard-to-abate sectors. This has
the potential to significantly increase electricity demand,
thereby supporting the roll-out of renewables.
New technologies such as cloud computing, artificial
intelligence and data centres further solidify the need for
large amounts of electricity without the carbon emissions
of fossil fuels.
What this means for TRIG
– Deepening relationships with corporate counterparties
to support the sale of power and guarantee of
origin certificates
– Expansion of storage investments such as batteries,
recognising that they support electrification and
benefit from the greater build-out of renewables
Political and regulatory support
The scale of meeting decarbonisation commitments
across Europe requires the public and private sectors
to work together to achieve this common goal. This
necessitates an economic environment that is conducive
to investment, and positive policy initiatives that support
renewable energy. The attitudes of governments and
regulators impact planning rules, the availability and
pricing of offtake contracts, and cost inflation, all of which
affect the operations and build-out of renewables.
What this means for TRIG
– Engagement with ministers and officials on energy
market policy
– A balanced approach to portfolio construction across
European countries
Energy security and
decarbonisation
Mitigating adverse climate change is a considerable
challenge. Renewable electricity generation is key.
Renewable energy assets and supporting infrastructure
reduce the reliance on carbon-intensive fossil fuels
through harnessing clean natural resources.
What this means for TRIG
– Ongoing operational management and enhancement
of 2.7GW portfolio of renewables infrastructure
– Continued investment in our 1GW 2030 pipeline of
development and construction projects
Positioned to leverage the need
for clean renewable energy.
Strategic Report Governance Financials
TRIG Annual Report 2024
23
Financial highlights
Financial performance and near-term outlook
Investment Report
Key underlying portfolio metrics 2023 2024 Commentary 2025 outlook
Pro-forma portfolio revenue (£m) 793 671 TRIG’s share of revenues for each
project in the portfolio
Improving with higher
power prices and the more
significant operational
matters resolved
Fixed revenues % 65% 75% 80%
Cash and debt metrics
Pro-forma portfolio EBITDA (£m) 610 493 Revenue less operating costs such as
operations, maintenance, rent, business
rates and insurance
Improving with higher power
prices and the more significant
operational matters resolved
Pro-forma portfolio EBITDA
margin
77% 73% EBTIDA as a percentage
of total revenues
Cash from projects before
debt repayments (£m)
558 444 EBITDA less interest payable by projects
on project finance debt,
tax payments and working
capital movements
Operational cash flows (£m)
1
502 390 Operational cash flows after
deducting operating and
finance costs from the fund
Gross cash cover 2.8x 2.1x
Distributable cash flows (£m) 283 184 Operational cash flows less project level
debt repayments made during the year
Net dividend cover 1.6x 1.0x c.1.1x
Total project-level gearing £2.1bn £1.8bn Reduced by £206m during
2024, reducing further to
£1.6bn by December 2025
Revolving credit facility (£m)
2
364 309 Expected to be reduced to
c.£100m by December 2025
Achieved merchant power price (£/MWh)
GB 113 70 Improving with higher
gas prices
Spain 39 29 Improving with lower
hydro levels
Sweden 24 22 Remains low, particularly
in northern price regions
following significant
generation capacity build out
1 On an Expanded basis. Please refer to the Financial Review section for an explanation of the Expanded basis. Operational cash flow generated is reconciled to the cash flow statements
as follows: cash received from investments £238m less Company (including its immediate subsidiaries TRIG UK and TRIG UK I) expenses £53m plus project-level debt repayments £206m.
Note: this measure excludes profits on disposals of £9m received during 2024, with which gross cash cover would be 2.2x and net dividend cover would be 1.06x.
2 As at 31 December. Upon receipt of proceeds from the partial disposal of Gode, it is expected that the RCF balance will reduce to c.£230m.
TRIG Annual Report 2024
24
Financial highlights
Financial performance and near-term outlook
The Group’s operational cash flow for the year at £444m or £390m
less fund expenses, represents 2.1 times cover of the £184m cash
dividend paid to shareholders and was used to repay £206m
portfolio-level debt. After operating, finance costs and working capital,
the Group’s distributable cash flow of £184m (2023: £283m) during
the period covered the cash dividend 1.0 times. Pro-forma EBITDA
for the year was £493m (2023: £610m). The table on the previous page
shows TRIG’s share (pro-rated for TRIG investment %) of revenues,
EBITDA and cash received from investments.
The balances on the previous page are not on a statutory IFRS basis,
but are pro-forma portfolio balances which show the Group’s share
of the revenue and EBITDA for each of the projects. These balances
have been provided to give shareholders more transparency as
to the Group’s capacity for investments and resilience to service a
progressive dividend.
Revenues are expected to improve from 2024 to 2025 with improved
power pricing and with the more significant grid outages experienced
in 2024 having been resolved.
In general, it takes one to two months between earning revenue
and receiving the cash up from investments. Consequently, working
capital produces variations between earnings measures and cash
measures. In periods of rising prices these working capital balances
are expected to grow, therefore increasing the differences, and vice
versa in periods of falling prices.
Revenues were lower in 2024 compared to 2023, driven mainly by
a decline in power prices from elevated levels in 2023, the impact of
divestments over the past 24 months and external grid infrastructure
outages. These revenue reductions flow through to EBITDA and
distributable cash flows.
The movement in distributable cash flows from 2023 to 2024 is less
than the reduction in revenues. This is due to taxes levied on high
power prices during 2023 across most geographies, exacerbated by
windfall taxes most notably in the UK, which led to a one-off increase
in taxes at project level in 2023 that did not apply in 2024 when power
prices had reduced below intervention levels.
EBITDA is strong at 73% reflecting the high capital expenditure and
low operational gearing of renewables projects. After servicing project
finance interest and debt repayments, tax and working capital, cash
is distributed from the portfolio to TRIG.
Valuation
The Company’s Net Asset Value as at 31 December 2024 was 115.9p
per share (31 December 2023: 127.7p per share) and the Company’s
portfolio valuation was £3,116m. Earnings for the period were -4.7p per
share (2023: 0.2p), principally due to macro and external factors.
The Managers’ active financial and operational management of TRIG
has reduced the impact of macro and external factors on the portfolio
valuation, including:
– The successful delivery of the 242MW Ranasjö and Salsjö onshore
wind farms through construction into operations
– Divestments totalling £185m signed during the year at an average
10% premium to carrying value
– Fixing power and guarantee of origin certificate pricing for multiple
projects at attractive prices improving the value assumed in the
portfolio valuation, with further opportunities being developed
– Limited cash flow exposure to rising interest rates due to fixed
interest rate borrowings and limited refinancing risk across the
project companies. Portfolio-level debt, which represents c.90% of
debt across the Group, has an average fixed interest rate of 3.5%
and amortises c. £200m per annum with no refinancing risk
Gains from revenue fixes and profits on divestment added £19m or
0.8p per share to the portfolio valuation. Share buybacks in the year
added a further 0.1p/share.
Macroeconomic movements that adversely impacted the portfolio
valuation, and therefore earnings, by c. 6.1p per share primarily
included: slight reductions in power price forecasts, reducing NAV by
2p per share; increases in valuation discount rates applied for the UK
assets, reducing NAV by 1.5p per share; lower outturn 2024 inflation
than forecast, reducing by 1p. The balance relates to other revenue
forecasts and foreign exchange (FX) movements.
Other factors that impacted the portfolio valuation include: transmission
infrastructure outages, which were repaired during the year; grid
downtime in Germany; and increased grid losses for transmission
connected UK offshore wind projects, collectively reducing NAV by
2.4p per share. Lower than forecast generation and achieved pricing
during the year, reducing NAV by 1.8p per share, and a review of
operational assumptions including asset-level energy yields and
operating costs, resulted in a net reduction of NAV by 2.4p per share.
The Investment Manager believes the Company’s portfolio valuation
remains a fair representation of the total value of the Company’s
underlying assets. This has been demonstrated over the past 24
months through £210m of divestments carried out at a 11% premium
to carrying values. Nonetheless the Company’s share price continues
to demonstrate a significant dislocation between the valuation placed
on renewables assets by private buyers, and the valuation public
market investors are placing on the Company’s shares. This backdrop
is reflected in the Managers’ pursuit of further disposals.
Greater detail on the valuation movements for the year ended
31 December 2024 can be found in the Valuation of the Portfolio
section on page 38.
Investment Report continued
Strategic Report Governance Financials
TRIG Annual Report 2024
25
Capital allocation
Responsible balance sheet management and disciplined capital
allocation are key priorities for the Company’s Board and Managers,
particularly in light of the prevailing elevated cost of capital compared
to recent historical levels.
Divestment proceeds received in the year have been allocated to
share buybacks, floating rate debt reduction and construction spend.
The Company commenced a £50m share buyback programme on
9 August 2024, of which £33m has been invested to date with the
Company having bought back 36m shares. Buybacks at a significant
discount to NAV are an economically rational capital allocation. As
such, and at the prevailing share price discount to NAV, the Board
has increased the scale, pace and term of the Company’s buyback
programme from £50m to £150m, representing approximately 8% of
TRIG’s shares in issue. The programme is expected to end by 31 May
2026, subject to market conditions. The Managers are progressing
over £300m of disposals and financing initiatives to take advantage
of the disconnect between private and listed markets, and enhance
returns to shareholders.
The Company’s floating rate debt and refinancing risk is isolated to
its revolving credit facility (“RCF”). Borrowings under the RCF were
£309m at 31 December 2024. It is expected that proceeds will be
received in early March 2025 from the sale of a 15.2% stake in Gode
offshore wind farm, which was announced 1 August 2024, and
upon receipt the RCF balance will reduce to c. £230m. The RCF
was refinanced in 5 February 2025 and has a maturity of 31 March
2028. The interest rate on the RCF is currently c.5.3%. The majority
of TRIG’s debt is long-term, fixed-rate, amortising project-level debt.
The average interest rate on this debt is 3.5%. Project-level debt was
reduced by £206m in the year to £1.8bn at 31 December 2024, which
represents 37% of enterprise value.
Construction and development spend of £48m was incurred during
the year. These investments were predominantly in the Ranasjö and
Salsjö onshore wind farms, Ryton battery storage project and the
Fig Power development platform, all of which represent attractive
investment opportunities for the Company in areas of strategic priority.
New investment decisions are being benchmarked against alternative
uses of capital, particularly share buybacks. Where possible, final
investment decisions and expenditure are being deferred.
Future commitments for new projects have not been increased in the
year and existing commitments have been delayed where possible
without jeopardising the value of the existing investment. Remaining
commitments of £95m are expected to be substantially funded from
operational cash flows.
2025 2026 2027 Tota l
Outstanding commitments (£m) 39 18 38 95
The Managers are actively pursuing further divestment and financing
opportunities to progress the Company’s capital allocation priorities.
Dividend
The dividend target for 2025 has been set at 7.55p per share,
representing a 1.1% growth on the 2024 dividend, which reflects the
Board and the Managers’ desire to build dividend cash cover. The
2025 dividend target represents an 10% yield
1
to TRIG’s closing share
price on 21 February 2025.
Investment highlights
The Investment Manager takes a careful and considered approach to
portfolio composition so that TRIG consistently benefits from a large,
diversified and balanced portfolio with investments spread across
different geographies, technologies, revenue types and project
stages to mitigate risk.
The Managers’ successful delivery of projects through development
and construction stages into operations is a key route to creating
value for shareholders. Several significant milestones were reached
during the year, including the commissioning of the Ranasjö and
Salsjö onshore wind farms in Sweden. Adding 121MW of net
operational capacity to the portfolio.
TRIG’s ongoing construction and development projects continue to
progress well: the Ryton battery storage project in the UK has entered
construction and is expected to be commissioned in H2 2025. The
repowering of Cuxac onshore wind farm in France has continued to
progress having selected the preferred turbine supplier, and the grid
connection date for the Spennymoor battery project in the UK has
been brought forward from 2031 to 2026.
Battery storage assets are critical to the energy transition and are
particularly complementary within a portfolio of renewables generation
assets, which can absorb the higher volatility commensurate with the
higher returns battery storage investment offers.
During the year, TRIG acquired Fig Power, a UK energy projects
developer with a focus on battery storage, comprising an advanced
pipeline of 400MW across seven projects, with grid offers ranging
from 2025 to 2033. The investment has been integrated into
the portfolio. The Fig Power team have made good progress in
the year having secured planning permission for seven projects
representing 190MW / 380MWh capacity with a further five projects
totalling 280MW / 560 MWh in planning. A key milestone for the Fig
Power portfolio will be the outcome of the National Energy System
Operator’s review of the grid connection queue on the back of the
government’s Clean Power 2030 plan. This is expected towards the
end of 2025. TRIG’s development pipeline represents 1GW capacity
that could enter construction by 2030. These projects can present
the opportunity to deliver double-digit rates of return on a build-and-
hold basis. In addition to a pipeline of projects for TRIG to build, the
Investment Manager expects that, taking into account factors including
TRIG’s cost of capital implied by its share price together with portfolio
balance and weightings, there will be opportunities to sell developed
projects to third parties and crystallise a development profit for TRIG.
Importantly, development activity is expected to be self-funded
through retained cash in excess of the dividend, proceeds from
portfolio rotation and debt capacity as existing portfolio-level debt
amortises. These value-add opportunities have the potential to provide
attractive risk-adjusted returns by leveraging the Managers’ expertise
in flexible capacity and development and construction projects.
1 The 2025 target should not be seen as an indication of the Company’s expected results or returns.
TRIG Annual Report 2024
26
Investment Report continued
Principal risks and uncertainties
TRIG’s principal risks, approach to risk management and
counterparty exposures are set out in the Risk and Risk Management
section of this report. Below is a commentary on the key movements
in these risks in the period.
In a macroeconomic environment where inflation and interest rates
continue to be elevated, the correlation of portfolio returns to inflation
and the Company’s approach to long-term, fixed-rate and amortising
structural debt are key risk mitigants.
Political and regulatory
The risk of government or regulatory support for renewables
changing adversely.
The ‘windfall’ taxes and levies on generators introduced in 2022 in
the wake of particularly elevated power prices across TRIG’s core
markets have now all expired, with the exception of the Electricity
Generator Levy in the UK which remains in place until 31 March 2028.
There remains a risk that further intervention may result if electricity
prices were to increase significantly again; however, current power
price forwards and the forecasts used in the valuation of the portfolio
are below the recent intervention price levels.
Across TRIG’s markets, 2024 saw elections in the UK and France,
and early elections in Germany in February 2025. The Labour
Government in the UK has announced a number of policies in
support of the renewable energy industry including: reducing planning
hurdles for onshore wind development, increasing the budget for
the AR6 Contracts for Difference allocation round and establishing
a state-owned energy company to support more nascent renewable
technologies; however, the impact of these policies is expected to
be realised over the longer term. In France and Germany, there is less
clarity given the lack of clear political majority in France resulting in
challenges in approving the 2025 fiscal budget and the very recent
election process in Germany. The Managers will continue to monitor
policy developments and engage on reform consultations across the
markets in which TRIG is invested.
The governments across Europe, including the UK, continue to
assess options to reform electricity markets, including how the
wholesale electricity price is set and whether new long-term revenue
support contracts should be made available to existing generators.
TRIG’s approach to diversify political and regulatory risk across
jurisdictions helps to reduce the impact on the portfolio from
individual risks at the national level. A range of technologies and
locations across the UK reduces, but does not remove, the risks
associated with the potential implementation of locational pricing
in the GB power market.In particular, revenues could be adversely
impacted in areas of lower demand where many UK wind sites are
based due to the strong wind resource available with some partial
offset likely from wind and solar sites in areas of higher demand.
Power prices
The risk of electricity prices reducing or not
increasing as expected.
Power prices in 2024 continued to reduce from the highs seen in
2022 / 2023 and were particularly low in the Nordics and Iberia where
higher rainfall resulted in elevated hydro levels relative to historical
averages. The power price outlook for 2025 is improved compared
to 2024 with attractive revenue fixes having been put in place for the
coming year as part of TRIG’s revenue management strategy. Price
volatility remains as increasing variable generation capacity across
Europe has led to greater instances of negative intra-day pricing
highlighting the case for flexible capacity, including battery storage,
and the requirement for an active revenue management strategy.
There has been little change in the long-term fundamentals of power
prices in the period, leading to limited movements in long-term power
price forecasts compared to those as at 31 December 2023 in most
geographies.
The valuation of the Company’s portfolio overlays market derived
forward prices to a blend of cannibalised power price forecast curves
produced by three independent forecasters. There is a risk that actual
power prices achieved are below these forecasts.
As the penetration of renewables increases and therefore
intermittency of energy systems increases, TRIG will be more actively
seeking to provide balancing services to the grid through battery
storage. By discharging electricity during periods of low generation
and absorbing excess electricity in periods of high renewable
availability, batteries are able to smooth the intra-day price volatility
associated with variable renewable resource. The inclusion of
batteries in TRIG’s portfolio therefore provides a valuable natural
hedge against volatility in power prices from generation assets
located in the same market.
Production performance
The risk that portfolio electricity production falls
short of expectations.
Overall, generation for the year was down against budget with
the single largest impact coming from unplanned, third-party grid
outages. Further detail on operational performance during the year
can be found in the Operations Report on page 31.
The Operations Manager continues to develop and oversee the
deployment of energy yield value enhancements to improve
generation output, as detailed in the Enhancements section.
Strategic Report Governance Financials
TRIG Annual Report 2024
27
£100m
£200m
£300m
£400m
£500m
£600m
£700m
£800m
£900m
’25 ’26 ’27 ’28 ’29 ’30 ’31 ’32 ’33 ’34 ’35 ’36 ’37 ’38 ’39 ’40 ’41 ’42 ’43 ’44 ’45 ’46 ’46 ’47 ’48 ’49 ’50
Fixed Revenue Merchant Revenue
12 months Dec ‘29 Dec ‘34
Dec ‘44
Fixed 80%
Merchant 19%
Battery revenues 1%
Fixed 74%
Merchant 24%
Battery revenues 2%
Fixed 70%
Merchant 28%
Battery revenues 3%
Does not cast due to rounding
Fixed 47%
Merchant 50%
Battery revenues 4%
Does not cast due to rounding
Split of project revenues by contract type for the portfolio
Forecast proportion of fixed vs. merchant revenues
1 The Company, TRIG UK, TRIG UK I and its portfolio of investments are known as the “Group”.
2 Including Sweden which receives electricity revenues from Nord Pool in Euros.
Counterparty credit
The risk of failure of a major supplier
TRIG’s portfolio is weighted towards wind-power assets, a sector
that is dominated by a small number of equipment manufacturers.
Counterparty failure could result in equipment not being supplied to
construction projects or operational and maintenance services not
being provided to commissioned projects or being disrupted.
Turbine manufacturers have experienced financial pressure due to
cost escalation over the past few years of prolonged high inflation.
While this has moderated slightly with trading performance in 2024
improving for many of TRIG’s key turbine suppliers, counterparty risk
is still considered to be elevated and will continue to be monitored
closely for signs of whether this improvement is sustained into 2025.
Construction activities are limited by TRIG’s Investment Policy cap of
25% of portfolio value and were 6% of Portfolio Value at 31 December
2024. Construction projects are in the battery storage sector where
there is a wider range of equipment suppliers compared to the wind
sector.
The increase in independent operations and maintenance
service suppliers reduces dependence on the original equipment
manufacturers, particularly with respect to onshore technologies.
Revenue profile
TRIG benefits from diversification across several power markets,
with projects in Great Britain, the Single Electricity Market (Northern
Ireland), the main continental European power market (France and
Germany), the Nordic market (Sweden) and the Iberian market (Spain).
TRIG’s portfolio cash revenues have substantial medium-term
protection from movements in power prices as the portfolio receives
a high proportion of its revenue from government subsidies such as
Feed-in Tariffs (“FiTs”), Contracts for Difference (“CfDs”), Renewable
Obligation Certificates (“ROCs”) or from selling electricity generated
via power purchase agreements (“PPAs”) with fixed prices or from
other hedges, together referred to as fixed revenues. The Managers
take an active approach to revenue management, and further details
on fixes and PPAs, including corporate PPAs, entered into in the
period can be found within the Operations Report.
The Group
1
receives a portion of its revenues in Euros; 39% of the
portfolio by value is invested in Euro-denominated assets,
2
the Group
employs foreign exchange hedging to significantly mitigate the cash
flow and valuation exposure to this risk, as expanded upon in the
Valuation of the Portfolio section on page 38.
The Investment Manager implements the Company’s foreign
exchange hedging policy through Sterling-Euro swaps for up to four
years forward. As a result of the interest rate differential between
UK and the Eurozone, forward foreign exchange contracts over the
next four years have been struck at levels better, in Sterling terms,
compared to the foreign exchange rate as at 31 December 2024
and used in the portfolio valuation.
TRIG Annual Report 2024
28
Power prices
A mild and wet start to 2024 and slower industrial demand growth than
expected impacted short term power prices across European markets.
Gas prices are the predominant marginal price setter for power prices
in the majority of markets in which TRIG invests. Going into 2025,
the cessation of the remaining gas transit from Russia via Ukraine
at the end of 2024 and cold weather, which increased gas demand
for heating, has reduced gas storage levels and lifted near-term gas
forward prices. The reduction in pipeline supply has made Europe
more dependent upon Liquefied Natural Gas (“LNG”) imports to
maintain gas balance, for which it increasingly competes with Asian
markets for supply.
In the longer term, increased supply of LNG from the USA is expected
to ease gas balance in Europe, reducing gas and electricity prices.
With the US expected to play a larger role in European gas supply
the possible introduction of tariffs on US LNG imports could exert
inflationary pressure on European energy prices.
The overall shape of the power price forecast curve remains broadly
unchanged with the expected increase in renewable generation
capacity projected to moderate prices over the longer term.
The majority of TRIG’s merchant exposure comes from projects in the
UK, Spain and Sweden. Electricity futures prices followed an upward
trend in the UK and Spain correlated with gas price movements. In
contrast Nordic power prices declined in the short-term due to the
price setting role of hydroelectric power in the region and elevated
reservoir levels in the second half of 2024. By diversifying assets
across several geographies TRIG manages exposure to any single
power market and marginal price setting commodity.
Policy & regulation
Intervention
As a response to prolonged high power prices in 2022, national
governments intervened in electricity markets either directly, to alter
the price set by the market, or indirectly, typically through windfall
taxes and price caps.
Against a backdrop of falling power and gas prices the European
Commission did not recommend extending emergency measures
beyond June 2023. Under the current EU legislative framework, national
governments can choose to unilaterally implement windfall taxation,
resulting in fragmentation across European markets. Of the markets
TRIG invests in, only the UK has windfall tax measures beyond 2024.
The table below presents the relevant, material interventions in place
in the markets where TRIG has investments.
United Kingdom
In Autumn 2024, the UK Government published a summary of
responses to a second industry consultation process and its updated
policy position with regards to its ongoing Review of Electricity Market
Arrangements (REMA). REMA’s scope focuses on the locational and
temporal balancing of electricity supply and demand, and associated
policies to incentivise investment such as the Contract-for-Difference
(“CfD”) and Capacity Market.
As part of REMA, the UK Government is considering either the
introduction of a reformed national market or zonal pricing. Zonal
pricing would involve setting electricity prices in several locations on
the transmission grid, rather than having a single wholesale price.
Both options seek to introduce sharper investment signals into the
wholesale market to incentivise renewable deployment in regions
less constrained by bottlenecks in the electricity transmission system
during peak production and demand periods. The GB grid operator
and electricity regulator have both expressed support for a move to
zonal electricity pricing beyond 2030.
Market Developments
Tax measure Market Applicable threshold Effective tax rate Reliefs Legislated period
Electricity
Generator Levy
UK £75/MWh indexed by CPI 70% (45% levy + 25%
corporate tax)
First £10m p.a. per
group
1 Jan 2023 to
31 Mar 2028
Inframarginal
Revenue Cap
France EUR 105/MWh 90% Excludes FIT’s and
CfD’s
1 Jul 2022 to
31 Dec 2024
Germany Feed-in Tariff + EUR
30/MWh
90% Allowance for
PPA costs
Expired
Sweden EUR 180/MWh 90% None stated Expired
Gas Clawback Spain and Portugal A calculated level based
on assumed gas price
85% Formula includes an
allowance to reflect
some costs
Expired
The prices assumed in TRIG’s forecasts going forward are below the intervention levels in each market, irrespective of whether measures
remain in place or have now lapsed.
Strategic Report Governance Financials
TRIG Annual Report 2024
29
European gas storage levels
100
90
80
70
60
50
40
30
20
10
0
Gas Storage Level (%)
Jan ‘25Jan ‘23 Jul ‘24Jul ‘23 Jan ‘24
10 year range 10 year average EU gas storage
Source: InfraRed analysis of Argus Media OTC price assessments
European 2025 power baseload forward prices
20
30
40
50
60
70
80
90
100
Jan ‘24 Feb ‘24 Mar ‘24 Apr ‘24 May ‘24 Jun ‘24 Jul ‘24 Aug ‘24 Sep ‘24 Oct ‘24
Germany 2025 France 2025 Nordics 2025Spain 2025
Nov ‘24 Dec ‘24
£/MWh
GB 2025
Jan ‘25
There is increasing recognition that zonal pricing increases investor
cost of capital. Further, in the absence of upgrading transmission
infrastructure, zonal ricing risks introducing regional distortions
to the electricity market which could harm electricity consumers,
undermine the investment case for renewables and jeopardise the UK
Government’s objective to deliver a rapid, low cost, energy transition.
These concerns were set out in an open letter from a broad cross
section of the economy including consumers of electricity, electricity
generators, and supply and demand side investors to the UK
Government in February 2025.
The UK Government is considering transitional arrangements that
would protect existing projects from market distortions introduced under
either a reformed national or zonal market. The Managers continue to
engage proactively with policymakers on the design of the GB power
market and proposed transitional arrangements ahead of a policy
decision expected in 2025. Diversification in the location of TRIG’s
investments across the UK and to other markets as well as by technology
beyond wind farms to solar parks and battery systems is a risk
mitigant to reduce the impact of a move to zonal pricing on TRIG.
Sweden
The Swedish power market is split into four price areas, or “bidding
zones”. Due to the changing dynamics of the Swedish power grid,
a bidding zone review is underway to redraw zonal boundaries to
reduce congestion and price spreads between zones. The review is
ongoing, however under the latest proposals a price uplift is expected
in the North of the country and moderate reduction in the South.
TRIG has projects across Sweden in two out of the four current
pricing zones. TRIG’s Jädraås and Grönhult projects are in a southern
price zone, and the Ranasjö and Salsjö projects are in a northern
price zone. This diversification means the impact on TRIG’s Swedish
portfolio assets is expected to be net neutral.
The outcomes of the UK and EU policy decisions may have an impact
on the revenue profile and future capital structure of the Company.
TRIG’s current capital structure that is modestly geared and where
the vast majority of debt across the group is fixed rate and amortising
during the period of fixed revenues per unit electricity generated gives
the Managers maximum flexibility to adapt the group’s future capital
structure in response to policy, regulatory and market changes.
Source: InfraRed analysis of Gas Infrastructure Europe Aggregated Gas Storage Inventory (AGSI)
TRIG Annual Report 2024
30
Key milestones in 2024
December
Milestone: ten-year contract for
the sale of Guarantee of Origin for
282GWh per annum
Technology: Onshore wind
Milestone: Enhanced approach to
securing strategic spares implemented
for Northern Irish wind projects
Technology: Onshore wind
September
Milestone: Agreement entered into
for the supply of electricity from two
French onshore wind farms to a green
hydrogen producer
Technology: Onshore wind
June
Milestone: Cadiz solar projects in
Spain are accredited for participation
in the ancillary services market.
Technology: Solar
February
Milestone: Grid energisation date for
Spennymoor battery storage project
advanced from 2031 to 2026
Technology: Flexible capacity
April
Milestone: Ranasjö and Salsjö in
Sweden commenced operations,
adding 121MW net generation capacity
Technology: Onshore wind
May
Milestone: Successful deployment
and testing of AeroUp blade
enhancements at The Grange
in the UK.
Technology: Onshore wind
Milestone: Successful implementation
of TuneUp software at Hill of Towie in
Scotland, lifting energy yield by 0.9%
Technology: Onshore wind
July
Milestone: Cadiz solar projects
awarded UNEF Seal of Excellence
in Sustainability
Technology: Solar
Rosieres, France
Strategic Report Governance Financials
TRIG Annual Report 2024
31
Operational performance
Net capacity
(MW)
2024
Load factor
Electricity
production
(GWh)
Performance
vs Budget
Onshore UK
548 29% 1,403 -5%
France
259 23% 523 -13%
Sweden
401 28% 923 -5%
Offshore GB
376 43% 1,420 -3%
Germany
232 41% 822 -3%
Solar GB, France,
156 11% 151 -9%
Spain
363 21% 673 -4%
Tot al
2,335 5,915 -4.9%
During the year 5.9TWh was generated, equivalent to 2% of the UK
domestic electricity usage. Overall electricity generation was 4.9%
below budget for the year. The single largest impact on generation
was from unplanned grid outages, due to equipment owned by third
parties – distribution or transmission owners, which are used to
export electricity from the site grid connection point to the national
grid. Insurance claims are underway, for applicable outages earlier in
the year, with some interim payments now received.
Wind and irradiation levels in the year were 1% above the long-term
mean, weighted by the TRIG portfolio’s distribution across the UK
and western Europe. This is the sixth year within the last ten when
the UK wind resource, weighted for the TRIG portfolio’s geographical
dispersal, has been at or above the 1996 to-date long-term mean. The
weather was more stable overall in 2024 compared to recent years,
with all wind regions within 3% of their respective long-term mean
averages. Excluding grid outages, generation was 2.8% below budget.
The Managers have dedicated resource that actively develops,
implements and secures commercial and operational enhancements.
Revenue management highlights:
– Signing of a three-year corporate supply agreement in France with
a green hydrogen manufacturer. Generation for 2025 has been
fixed at a premium to forecast prices.
– Ten-year contract with a European auto manufacturer for the sale
of Guarantee of Origin (GoO) certificates associated with 282GWh
of annual generation in Sweden; and.
– The price for 828GWh generation output in 2025 has been fixed by
the Managers across GB & NI and Spain. This is in addition to the
3TWh fixed under government contracts.
Since year end, TRIG has entered heads of term discussions in respect
of a ten-year corporate PPA for 2% of the Group’s annual generation.
This will be incorporated into the portfolio valuation once executed.
Operations Report
The key operational enhancements highlight in the year was the
progression of blade and software improvements to increase
generation across 174MW net generation capacity:
– Installation of phase one is complete in respect of 69MW. Internal
calculations indicate up to 6% energy yield increase, which is being
validated
by a third-party
– Hardware and software trials are underway across 114MW, with
roll-out across the associated sites expected to be completed
during 2025 and uplifts validated in 2026
– These enhancements have not been included in energy yield
budgets nor the portfolio valuation, until fully externally validated.
A3% energy yield uplift across 174MW net generation capacity
could add £6m to Portfolio Value
Potential blade and software upgrades are being developed for a
further 76MW net generation capacity.
Further detail on these and other initiatives can be found in the
Enhancements section on page 34–35.
Onshore wind
UK
Performance in the region across the year was on budget, excluding
the impact of outages caused by offsite third-party owned grid
equipment, which adversely impacted some sites’ ability to export.
Where applicable, insurance claims have been submitted to ensure
that the projects deliver commercially. Underlying wind resource was
2% above the long-term mean.
A re-tendering of Operations and Maintenance (“O&M”) contracts for
Altahullion and Lough Hill in Northern Ireland concluded during the
year, which provides price certainty through to repowering in the late
2020s with competitive terms secured.
An enhanced approach has been adopted for managing strategic
spares at older Northern Ireland onshore wind sites. This approach
included a review of historic and forecast parts usage, updated
lead times for securing parts and single point of failure analysis to
re-confirm critical components – whether large or small. To further
support future major component exchanges that require crane usage,
a proactive crane hard-standing design review was performed. This
helps to ensure that the ground conditions are well understood, and
appropriate and safe to use prior to cranes arriving on-site as well as
minimising down time.
TRIG Annual Report 2024
32
At Mid Hill, an off-site grid transformer owned by a third party failed
in mid-June, preventing the site from being able to export electricity
to the grid. The wind farm has now been fully returned to service and
lost generation is expected to be compensated. Crystal Rig 1 suffered
a flash-over in October during switching activities within a turbine. A
comprehensive cleaning and rectification programme is underway
across the site, with turbines expected to be returned to service during
Q1 2025.
Within the Fred Olsen joint venture, blade hardware enhancement
works were performed at Rothes 1 and Paul’s Hill. Installations included
blade tip furniture to smooth the wind flow around the end of the blades
as well as vortex generators along the length of the blade to reduce
turbulence as the air leaves the blade, both of which reduce loading on
the blades and towers and increase the energy yield secured. Close to
half of the hardware has been installed, the remainder of the turbines
on these sites will have hardware installed in summer 2025.
France
France was the only wind region within TRIG’s portfolio where the
mean wind in the year was below the long-term mean. This lower
wind contributed to the greater variance between budget and actual
generation in the period.
Proactive measures at some of the more mature sites have been
undertaken to reduce risk to related downtime as the projects are
prepared for repowering.
Older sites in southern France have recently suffered from below
budget availability due to higher component faults or component
failures. To address these failure rates, new O&M contracts have been
entered into with larger, dedicated teams of technicians. This greater
focus of resources will help to maintain and then improve performance
on these four sites as they move towards repowering.
Some negative pricing events have been experienced in the region,
during which generation is curtailed so as to mitigate losses. Ancillary
service contracts are being reviewed to help mitigate the risk or value
of any negative pricing that arises in future.
In the second half of the year, a PPA was signed for TRIG to supply
Hyd’Occ, a green hydrogen facility, with renewable electricity from the
Company’s onshore wind farms located in the Occitanie region. The
project will contribute to the energy transition through the development
of a low-carbon hydrogen industry in the region.
Vannier onshore wind farm’s environmental authorisation is subject to
an ongoing legal challenge. A court ruling has required the wind farm
to temporarily suspend generation, for an assumed period of up to
12 months, whilst updated environmental data is collected. TRIG has
commercial protections in place for this.
Sweden
The Ranasjö and Salsjö projects were energised in January, with
full operations being achieved in April following the ramp-up phase.
Located in central Sweden, the sites consist of 39 Siemens turbines
each rated at 6.2MW. TRIG has a 50% interest in the projects
representing 121MW of net generation capacity. Some turbines have
suffered gearbox issues since take-over requiring rectification, which
is performed under warranty at the turbine supplier’s cost, with an
availability warranty in place to protect the project from any associated
downtime. Ranasjö and Salsjö experienced higher than expected wind
since their commissioning, whilst Grönhult and Jädraås wind was
on-budget across the full year. However, Jädraås suffered from third-
party grid maintenance works, which reduced its export capacity,
preventing the region from fully benefiting from the good wind.
A long-term fix for GoO certificates associated with 282GWh of
annual generation in Sweden was entered into at prices in excess of
those assumed in TRIG’s valuation assumptions.
A RES analytics and diagnostics software tool, Anemo Live, is
currently being implemented at Grönhult to enhance operation of the
site by sourcing significantly higher resolution data, enabling turbine
performance to be better understood and optimisation opportunities
for yield enhancement to be identified.
Operations Report continued
East Anglia One, UK
Blade management
Keeping wind turbine blades in good condition is critical to
maximising investment value. Blades in good condition have
better aerodynamic properties, allowing them to capture more
energy more efficiently and operate at peak capacity.
RES has recently added to its technical offering on blade
management with targeted acquisitions in this space;
Bladena (December 2024) and Sulzer Schmid (September
2024).TRIG has a broad range of wind assets both in terms
of manufacturer and vintage, and can draw upon RES’ full
suite of services to optimise blade management, enhancing
asset performance and enabling extension of asset life.
Strategic Report Governance Financials
TRIG Annual Report 2024
33
-15%
-10%
-5%
0%
5%
10%
15%
20%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
France Onshore Wind UK Onshore WindGermany Offshore Wind Sweden Onshore Wind Solar and Storage Weighted Average
2024
UK Offshore Wind
Weather analysis
The graph below shows hindcast analysis of annual variances of
wind and solar resource as a percentage variation to the long-term
average since 1996 for TRIG’s operating portfolio, by region and
technology. The weather variability, by region, can be seen to be
much more consistent than in the 2020 to 2023 period and when
compared against the long-term average since 1996.
No long-term positive or negative trend is apparent, whether such as
due to climate change, for which most analysis of changing weather
patterns is focused on the 20- to 50-year outlook. Greater variability
inevitably becomes more apparent as shorter time frames are
appraised, with April and August windspeeds trending upwards,
whilst May and November windspeeds trended downwards.
Offshore wind
GB
UK wind resource for TRIG’s offshore windfarms was 3% above the
long-term mean. The previously reported grid faults, that occurred on
third-party owned offshore transmission infrastructure but affected
TRIG and its co-shareholders on East Anglia One and Hornsea One,
have been repaired. The cost of repair was suffered by the asset
owner, not the projects.
Insurance to compensate for lost generation is in place. Claims have
been submitted and an initial payment on account received. An
insurance excess applies, so whilst the projects are not fully insulated
from the grid owners’ equipment failures, they are substantially
protected and the risk management is considered to be appropriate.
Beatrice experienced a one-month grid curtailment to enable works
to be performed on a third-party owned substation, adversely
impacting its ability to export during this time.
At Hornsea One, Power Curve ‘Optipitch’ upgrades have been rolled
out and it has achieved success in a bid for the provision of Electricity
System Response (ESR) services to National Grid ESO. Following the
end of the project’s warranty period in July 2024, O&M services have
been transferred to Orsted, with availability warranties preserved.
Germany
Wind resource was on-budget during the year, supporting good
generation performance before the impact of grid losses and a
substation outage at Merkur, alongside curtailments at Gode for
negative pricing events. Commercial terms for PPA have been improved
to identify and reduce exposure to negative pricing in the future.
A turbine power curve upgrade was completed at Merkur, enabling
the turbines to generate more electricity at a given windspeed.
Merkur also had additional blade leading-edge protection works
completed. These blade works reduce the erosion suffered by the
blades as they pass through the air, thereby improving their long-term
aerodynamic performance whilst also extending the blade lifespan
with fewer repairs required.
Solar and storage
Spain
Very good availability was achieved across the large Spanish assets,
which represent over 80% of the TRIG solar portfolio by generation
volume. Generation was adversely impacted by export curtailment in
response to low power prices for the Cadiz projects in H1 2024. These
curtailments resulted from above-average rainfall increasing run of river
hydroelectric power generation in the region, which suppressed power
prices. Since Q2, Cadiz price curtailment has improved, reducing
related losses from 15GWh in Q2 to less than 1GWh in Q3.
New route to market agreements for the Cadiz solar sites enabled
participation in the ancillary services market from Q3 2024, providing
an additional revenue stream for the projects when curtailed at low
prices. This commercial enhancement is already in place at TRIG’s
other Spanish solar site, Valdesolar.
Further commercial enhancements were achieved for the Spanish solar
sites, including the completion of an O&M tender at Cadiz as well as the
execution of a PPA with fixed pricing elements at Valdesolar on attractive
terms, increasing power price security across the Spanish portfolio.
In July, the Cadiz solar projects were awarded the Spanish
Photovoltaic Union (UNEF) Seal of Excellence for Sustainability,
recognising the integration of social and environmental factors
following an independent audit.
GB
GB solar performed well across the year. Module replacement for
one site is scheduled for 2025, which will improve the overall
efficiency and prolong the life of the site. The Broxburn storage
asset passed its extended performance test, demonstrating good
compliance and asset health, to continue participation in Capacity
Market Process. Studies are also commencing to analyse optimal
revenue streams following the expiration of the project’s Enhanced
Frequency Response contract in June 2028.
France
The French solar projects, which represent approximately 5% of the TRIG
solar portfolio by generation volume, generally performed well through
the year. Two sites in French overseas territories are undertaking site-wide
module replacement, which commenced in H2 2024, and will improve
generation efficiency and output. Phasing of the module replacements
has been ordered to minimise offline capacity at any one time, with
both sites expected to be back to full operations during H2 2025.
Hindcast analysis based on industry standards using long term reference data sources including MERRA-2, ERA-5 and SolarGIS to build localised, site-specific long-term yields. The chart
shows how production has varied compared to this long-term average due to resource only.
TRIG Annual Report 2024
34
Development and construction
Swedish wind farms Ranasjö and Salsjö, representing 121MW net
generation capacity for TRIG were commissioned in H1 2024.
The first project in TRIG’s 1GW 2030 development pipeline, the 78MW
two-hour Ryton battery storage project near Newcastle, commenced
construction in April and is progressing on schedule. Ground works
are complete. Independent Connection Provider and Electrical
Balance of Plant works commenced in July. Energisation is targeted
for winter 2025 and full commercial operation in spring 2026.
The grid connection date for the 100MW Spennymoor project has
successfully been brought forward from 2031 to 2026. Design and
procurement activities are being progressed. Recognising TRIG’s
capital allocation priorities and the investment return hurdle rate set
by share buybacks, the Managers have deferred the final investment
decision to 2025.
A revised planning consent has been obtained for the 90MW Drakelow
project reflecting the final site design. The grid connection date for
the project has been delayed by two years due to delays to wider grid
reinforcement works. Engagement is ongoing with the grid companies.
Repowering works continue to progress in France. Cuxac onshore
wind development site secured an inflation-linked tariff of €86/
MWh and obtained authorisation for the increase in site capacity
from 22.8MW to 25.2MW. The preferred turbine supplier has also
been selected and EPC negotiations are being progressed. The final
investment decision has been deferred to 2025 and will be informed
by the Board’s capital allocation strategy and relative risk-reward for
alternative uses of capital at the time.
A planning application for the repowering of Haut Cabardès onshore
wind farm in France was submitted in December 2024, with approval
expected to take 12 to 18 months.
Fig Power, the battery development platform acquired by TRIG in 2024,
has made significant progress in the year. Ten of the battery projects
now have site lease options signed and seven projects have obtained
planning permission. A further five projects have submitted and are
awaiting receipt of planning permission. The first project with a 2027
grid connection date will be considered for its final investment decision
in 2025, which will factor in TRIG’s capital allocation priorities. More
broadly, a key milestone for the Fig Power portfolio will be the outcome
of the GB National Energy System Operator’s Strategic Spatial Energy
Plan outlined in December 2024 as part of the wider Clean Power 2030
strategy. Development expenditure and overheads of the platform in
2025 are expected to be modest.
Health and safety
Delivering high quality health, safety and environmental (“HSE”)
standards within the portfolio continues to be the top priority.
The portfolio asset managers promote a strong safety culture through
a proactive approach, utilising safety drills, training days and internal
and external audits, amongst other activities, which complement the
robust safety frameworks. RES, the Operations Manager, continues
to engage proactively with the asset managers to share best practice
and lessons learned across the portfolio.
TRIG’s Managers continue to promote a strong HSE culture
throughout the portfolio, encouraging open communication, reporting
and continuous improvement. The best practice approach to HSE
culture is exemplified by the HSE coordination group hosted twice
a year by the Operations Manager. The group fosters relationships
between the various asset managers across the portfolio and
provides a forum to share information and discuss matters that
have arisen on the portfolio and wider industry. There has been a
continued focus on positive leading indicators such as the number of
independent and internal safety audits and assurance reviews, hazard
identifications and safety walks.
Our approach
RES believes that safety is a shared responsibility. Upholding
the highest safety standards to foster a culture of Zero Harm,
placing a strong emphasis on daily safe practices and continuous
improvement. Achieving Zero Harm requires continuous
dedication to safeguarding the safety, health, and overall
wellbeing of everyone working with RES.
RES has achieved industry-leading health and safety
performance, including playing a founding role in SafetyOn,
the health and safety body for the onshore wind industry. RES
has ISO systems in place across parts of the organisation
where they are certified to ISO 9001 (Quality), ISO 55001 (Asset
Management), ISO 14001 (Environmental Management), and ISO
45001 (Occupational Health and Safety), ensuring a consistent,
high-standard approach to project execution.
During 2024, across the portfolio there have been no HSE-reportable
severe accidents. Over the past five years TRIG has reduced the
12-month rolling average seven-day Lost Time Accident Frequency
Rate (“LTAFR”) from 0.49 for the 2020 financial year to 0.23 for the 12
months to 31 December 2024, reflecting both a reduction in higher-
risk construction activity in the period as well as active management
of health and safety risk by the site managers across the portfolio.
Highlights of proactive measures taken in 2024 include:
– A revised HSE assurance process launched by RES for TRIG
projects focusing on undertaking desk-based management system
and site-based inspections. The assurance process is built upon
core ISO standards and is overseen by the Operations Manager.
Targets in relation to these assurance reviews have also been
embedded in TRIG’s RCF sustainability KPIs.
– Project Company Director visits which have taken place or are
scheduled at sites across the portfolio, to ensure familiarity with
the sites and to engage with the local service providers on safety
and other key themes.
– A large number of drills and exercises conducted across the portfolio.
This includes offshore emergency rescue training at Beatrice offshore
wind farm and person overboard training at Gode offshore wind farm.
HSE awareness campaigns were run on a large number of topics
including hand safety, winter weather driving and manual handling.
– A RES Global Safety Focus Event took place in May 2024 incorporating
some 4,500 colleagues from 24 countries all undertaking a safety stand
down day to focus on best-in-class safety culture and performance.
Enhancements
The Managers, RES and InfraRed are dedicated to enhancing
portfolio performance, shareholder returns and stakeholder value
through both commercial and technical initiatives. The Managers
apply a structured framework to identify, appraise and implement
enhancements at both individual and portfolio levels. Examples of
the enhancements progressed during 2024 include:
Increasing revenues:
Blade improvements to increase generation:
– The installation of a first phase package of aerodynamic improvements
to multiple turbines’ blades at four sites in the UK wind portfolio
(100% owned with total site capacities of 59MW) is complete, with
the data collection period to validate the energy uplift underway.
– Installation of an initial phase is complete at two sites within a
French joint venture portfolio, with data collection underway,
and is well progressed at two further GB projects within a separate
joint venture portfolio (of which 66MW represents TRIG’s share),
benefiting from RES’s wider understanding and associated
research and development on TRIG sites.
Operations Report continued
Strategic Report Governance Financials
TRIG Annual Report 2024
35
– An associated suite of parameter changes to the turbine controller,
to maximise the additional energy yield from the hardware
upgrades, has been installed and validated on a trial site in GB
(48MW) – recognising that, once blade aerodynamics have been
altered, further performance optimisation can be obtained by
changing the way in which the blades are operated.
– Software upgrades improved yield by 1% in addition to the 5%
achieved from the blade hardware upgrades at the initial trial site.
Wind turbine software enhancements to improve operational
efficiency using advanced technologies:
– The wake steering and collective control trial at Altahullion in
Northern Ireland has completed with independent energy yield
uplift analysis concluded over the winter of 2023 demonstrating an
uplift of over 0.5%. This enhancement is an innovative retrofitted
upgrade to increase electricity production whilst also reducing
turbine loads and thereby helping to prolong good structural health
of the wind turbines. Approval has been granted for deployment at
a second UK site;
– A power curve upgrade package that optimises the pitch of the
blades at wind speeds below rated power has been deployed at
Merkur offshore wind farm following trials, expected to increase
energy yield by 0.7%. Validation has commenced to determine the
final energy yield uplift, on which payment is based;
– Power Curve ‘Optipitch’ upgrades have also been rolled out
at Hornsea One with an estimated 0.7% energy yield uplift.
Deployment is similarly anticipated in Q1 2025 at Beatrice with an
estimated uplift of 1%; and
– A power boost upgrade, which increases a turbine’s power output
by up to 5% in certain operating conditions, is under the final
stages of assessment at Hornsea One, with a “mini” version ready
to deploy when weather conditions allow;
– A wake steering system from a turbine manufacturer continues
to be progressed at two offshore windfarms, with negotiations
underway at a third;
Minimising lost production:
– Shadow flicker typically arises on sunny winter days when the
sun is low in the sky, for very distinct time periods that change
each day. Software upgrades have been implemented at Blary
Hill to automatically identify the positioning of the sun relative to
the turbines and local dwellings coupled with the cloud cover, to
determine whether shadow flicker is likely to occur from a particular
wind turbine. This approach helps to ensure that wind turbines
are only curtailed when shadow flicker is present, typically only
ten-twenty hours per year, to minimise the lost production and any
potential adverse impact.
– Ice-phobic blade waxing trial complete at Haut Languedoc. Build-
up of ice on blades can cause weight imbalances across the rotor,
resulting in turbines stopping automatically to prevent damage to
the turbines, with resulting production losses in winter. The wax
application is to assess its efficacy in preventing ice build-up,
thereby reducing production losses.
– RES’ proprietary AnemoLive remote performance optimisation
tool will be installed at four projects to complement existing
condition monitoring and enhance the identification of operational
improvement opportunities.
– A trial of a new RES product to optimise the power output and
inverter temperature at solar parks has commenced on three
GB projects. The software manages temperatures at a threshold
to avoid overheating and tripping. On hot days this optimisation
can result in an increase in output by up to 20% and will reduce
degradation on inverters and associated replacement rates.
Additional revenue streams:
In addition to the primary sources of revenue from wind and solar
sites relating to the sale of electricity and / or an enabling subsidy,
additional smaller ancillary revenues can also sometimes be obtained.
– In Spain, a new sales agreement for the Cadiz solar sites has
enabled participation in the ancillary services market, principally
to participate in balancing market activities. In addition to the new
revenue stream, through the provision of such services, there
is also a reduced likelihood of the grid operator from needing
to curtail the site to maintain system stability, resulting in less
uncompensated curtailments.
– In Sweden, ancillary services for the provision of grid balancing
services have been identified, with the installation of software to
facilitate the process now contracted with the grid operator, in
order to access a new revenue stream at Ranasjö and Salsjö.
– In France, contracts to provide grid-balancing ancillary services are
progressing for the four southern French sites which are scheduled
to be repowered, offering the potential for an additional revenue
stream for the remaining operating life of these projects.
– Two GB solar sites are scheduled to take part in a flexibility service
offered by local Distribution Network Operators that will help
balance demand-supply on the system.
– Hornsea One was successful in tendering for the provision of
Electricity System Restoration (formerly known as Black Start)
‘Top-up’ functionality to the National Grid over a five-year contract
from November 2025. This capability enables the project to help
restore the grid in the event of a partial or total loss of power on the
grid, following which, other large generators without Black Start
capability are then able to re-connect to the grid.
Optimising operations:
– The recently renewed operation and maintenance contracts at
Altahullion and Lendrum’s Bridge onshore wind farms have been
supplemented with a comprehensive spares strategy to mitigate
ongoing challenges in the spares market for components for
these older turbines. This structure facilitates a more efficient
procurement approach, more cost-effective spares and lower
downtime for the turbines.
– GB solar inverter repowering studies are well progressed, which
once inverters have been replaced, will reduce operating costs,
increase availability and prolong the life of the sites.
– Further GB solar inverter software optimisation opportunities are
currently being evaluated to enable inverters to operate more
dynamically, particularly in hot weather, to avoid degradation and
trips due to excessive temperatures.
The Grange, England
TRIG Annual Report 2024
36
Sustainability
Renewable energy is key to replacing fossil fuels,
thereby reducing carbon emissions of the electricity
system, and addressing the negative impacts of climate
change. Due to the nature of renewable energy assets
as significant capital-intensive infrastructure embedded
in communities and the environment, a long-term view
must be taken with sustainable business practices
applied throughout each project lifecycle.
The Board and TRIG’s Managers recognise that the
Company’s responsibility goes beyond climate-related
environmental considerations alone and seek to
incorporate sustainable practices to meet the needs
of the present generations without compromising the
needs of future generations.
Affordable and clean energy
By owning and operating renewable energy
assets, TRIG is helping to provide clean energy
across the UK and Europe. Providing investment
funding for new greenfield infrastructure and
acquiring operational assets allows developers
to recycle capital into the build-out of more
renewables assets. This recycling of capital
contributes to a reduction in the overall cost of
deploying renewables. TRIG’s current 2.3GW
operational portfolio powered the equivalent of 1.6
million homes with clean energy.
2
Climate action
Climate change considerations are integrated
into TRIG’s policies and planning. This includes
the assessment, management and reporting of
climate-related risks and opportunities associated
with its portfolio, as well as taking steps to
reduce the portfolio’s carbon footprint. TRIG’s
operational portfolio contributes towards a net
zero carbon future and avoided 2 million tonnes of
CO
2
emissions during 2024
2
, generating 6TWh of
renewable electricity.
Read more about
Affordable and Clean Energy
Read more about
Climate Action
Key contributions to two
of the UN’s Sustainable
Development Goals
1
Sustainable Development Goal (SDG) contributions
are made through our investments and our positive
impact on the local communities around our assets.
Overall, the Company’s portfolio contributes to
11 out of the 17 SDGs, the most significant direct
contributions are to the following:
1 https://www.un.org/sustainabledevelopment.
2 As at 31 December 2024, calculated in accordance with the International Financial Institution (IFI) Approach to GHG Accounting for Renewable Energy to aid comparison with other
industry participants.
Full details on the sustainability approaches of TRIG and its
Managers can be found on the respective websites.
TRIG’s core business of generating renewable
electricity plays a pivotal and positive role
towards advancing a sustainable future.
Selina Sagayam
Chair, ESG Committee
24 February 2025
Strategic Report Governance Financials
TRIG Annual Report 2024
37
Priorities Metrics
2023
performance
2024
performance Objectives
Mitigate adverse
climate change
– Investing in the energy
transition
– Supporting climate resilience
Renewable electricity generated
1
5,986GWh 5,915GWh
Number of homes (equivalent) the
portfolio is capable of powering with
clean electricity
1.9m
homes
1.7m
homes
Carbon emissions avoided
2
2.1m
tonnes
2.0m
tonnes
Percentage of total portfolio sourcing
electricity under Renewable Electricity
Supply Contracts
89% 94% – 100% of total
portfolio sourcing
electricity under
Renewable Energy
Supply Contracts
by 2035
Scope 1 carbon emissions – direct
emissions (tCO
2
e)
0 0
Scope 2 carbon emissions – indirect
emissions (tCO
2
e)
0 0
Scope 3 carbon emissions – indirect
emissions, within the Company value
chain (tCO
2
e)
0.04m 0.03m – 75% supplier net
zero engagement
3
Preserve our natural
environment
– Reducing resource
consumption
– Minimising biodiversity loss
Number of active Environmental
Enhancement projects within
the portfolio
4
38 53
Sites with project activities that are
negatively affecting biodiversity
0 0
– Maintain no negative
biodiversity impacts
Positively impact the
communities we work in
– Community engagement
and support
– Promoting responsible
supply chains
Number of community funds within
the TRIG Portfolio, where there is a
formal agreement to provide funding
to benefit a specific community
42 46 – Create two
new voluntary
community funds
a year
– No issues with the
local community/
local stakeholders
Number of sites that have
any outstanding issues with
the local community or other
non-contractual stakeholders
2 4
Community contributions
perannum in £
£1.5m £1.8m
Maintain ethics and
integrity in governance
– Fostering Diversity, Equity
& Inclusion (DE&I)
– Maintaining health and safety
Seven-day Lost Time Accident
Frequency Rate (LTAFR)
0.09 0.23 – Maintain an accident
frequency rate
under 0.5
Our sustainability
objectives
This page sets out TRIG’s four sustainability objectives,
and the progress achieved towards them during 2024.
1 Includes compensated production due to grid curtailments, insurance and other availability warranties.
2 Values calculated based on actual generation for 2024, in accordance with the IFI Approach to GHG Accounting for Renewable Energy.
3 A target to have suppliers covering at least 75% of TRIG’s scope 3 emissions to have net zero targets in place.
4 Operational TRIG sites engaged in proactive habitat management plans that exceed standard environmental maintenance.
TRIG Annual Report 2024
38
Valuation of the Portfolio
The Directors’ valuation of the portfolio as at 31 December 2024 was
£3,115.6m (31 December 2023: £3,509.1m).
The Investment Manager is responsible for carrying out a fair market
valuation of the Group’s investment portfolio which is presented to the
Directors for their approval and adoption. Valuations are carried out
on a six-monthly basis at 31 December and 30 June each year.
For non-market traded investments (being all the investments in
the current portfolio), the valuation principles used are based on a
discounted cash flow methodology and adjusted in accordance with
the International Private Equity and Venture Capital Valuation (“IPEV”)
guidelines adjusted where appropriate to comply with IFRS 13 and
IFRS 9, given the special nature of infrastructure investments. Where
an investment is traded, a market quote is used.
1 Directors’ Valuation is an Alternative Performance Measure (“APM”). See page 53 for details of APMs. Further, the reconciliation from the Expanded basis financial results is provided in the
Financial Review section on page 48, and a reconciliation of the Directors’ Portfolio Value (APM) to Investments at Fair Value is provided in Note 12 to the Financial Statements.
The valuation for each investment in the portfolio is derived from the
application of an appropriate discount rate to reflect the perceived
risk to the investment’s future cash flows to give the present value of
those cash flows. The Investment Manager exercises its judgement
in assessing the expected future cash flows from each investment
based on the project’s expected life and the financial model produced
by each project entity. In determining the appropriate discount rate
to apply to a given investment, the Investment Manager takes into
account the relative risks associated with the revenues, which include
fixed price per MWh income (lower risk) or merchant power sales
income (higher risk).
Balance does not cast due to rounding
* Foreign Exchange movements in the bridge are stated before the offset of currency hedges which are held at the Company and its subsidiaries TRIG UK and TRIG UK I. The valuation loss on
the portfolio reduces to £13m with the impact of the hedges included.
Valuation movement in the year from 31 December 2023 to 31 December 2024
Valuation movement
A breakdown of the movement in the Directors’ valuation of the portfolio in the period is illustrated in the chart and set out in the table below.
Valuation movement during the period to 31 December 2024
£m £m
Valuation of portfolio as at 31 December 2023 3,509.1
Cash investments 48.3 –
Disposal proceeds (103.8) –
Cash distributions from portfolio (227.8)
Rebased valuation of portfolio 3,225.8
Movement in foreign exchange* (66.4)
Change in power price forecast (50.0)
Movement in valuation discount rates (34.1)
Change in inflation assumption (24.2)
Portfolio return 64.5
Valuation of portfolio as at 31 December 2024 3,115.6
* A net loss of £12.8m after the impact of foreign exchange hedges held at Company level.
£3,700m
£3,500m
£3,300m
£3,100m
£2,900m
£2,700m
£2,500m
3,509
31 Dec 23
Valuation
Portfolio Valuation
New
Investments
Disposal
Proceeds
Cash
Distributions
from Portfolio
Rebased
Valuation
Movement in
Foreign
Exchange*
Change in
Power Price
Forecast
Movement in
Discount
Rates
Change in
inflation
Assumption
Portfolio
Return
31 Dec 24
Valuation
48
-104
-228
3,226
-66
-50
-34
-24
65
3,116
Strategic Report Governance Financials
TRIG Annual Report 2024
39
The Board regularly engages an independent third-party expert
to review the Manager’s valuation, and accordingly the Board
commissioned an independent valuation from the accountants BDO
as at 30 June 2024, and a discount rate benchmarking exercise
as 31 December 2024. BDO’s independent valuation included
a review of the key valuation assumptions including discount
rates, power price and its cannibalisation,
2
inflation and other
macroeconomic assumptions, operating costs and asset lives.
BDO’s work corroborated the TRIG June 2024 valuation and the key
underlying assumptions as adopted by the Board and used within
the preparation of these accounts. The discount rate benchmarking
exercise as at December 2024 further corroborated the discount
rates and assumptions used.
The opening valuation as at 31 December 2023 was £3,509.1m.
Allowing for cash investments of £48.3m, disposal proceeds of
£103.8m and cash receipts from investments of £227.8m, the
rebased valuation as at 31 December 2024 was £3,225.8m.
Investments in the period were predominantly made in two
construction phase investments: the Swedish wind investment Twin
Peaks (the Ranasjö and Salsjö projects); and the UK battery investment
in Ryton. In addition, the Fig Power platform was acquired in the year.
The Twin Peaks projects were commissioned into operations in H1
2024. Ryton is expected to become operational in H2 2025.
Each movement between the rebased valuation of £3,225.8m and
the 31 December 2024 valuation of £3,115.6m is considered below:
(i) Movement in foreign exchange:
Over the year, Sterling has appreciated 5% against the Euro
compared to the rate as at December 2023 (31 December 2023: EUR
1.1535; 31 December 2024: EUR 1.2085). In aggregate, this has led to
a reduction in the valuation of the Euro-denominated investments in
the year of £66.4m. After the gain on forward currency hedges held at
Company level, the foreign exchange loss reduces to £12.8m.
Euro-denominated investments across France, Germany, Spain and
Sweden comprised 39% of the portfolio by value at the year end.
The Company enters into forward hedging contracts (selling Euros,
buying Sterling) for an amount equivalent to its expected income from
Euro-denominated investments over the next 48 months. In addition,
the Company enters into further forward hedging contracts such that,
when combined with the income hedges, the overall level of hedge
achieved in relation to the Euro-denominated assets is typically in
the range of 60% to 85% of their valuation. Hedging is also effected
through drawings under the Company’s revolving credit facility in Euros.
The Investment Manager reviews the level of Euro exposure and
utilises hedges with the objective of minimising variability in shorter-
term cash flows with a balance between managing the Sterling value
of cash flow receipts and potential mark-to-market cash outflow.
Illustrative blended power price curve (net of cannibalisation assumptions and PPA discounts)
for TRIG’s portfolio
3
Forecast prices by region (real)*
Average
2025–2029
Average
2030–2034
Average
2035–2050
Great Britain (GBP per MWh) 62 55 51
Average of four Euro denominated markets (EUR per MWh) 57 60 57
* The average forecast price for 2051–2060 is 48 GBP per MWh in Great Britain and 53 EUR per MWh in Europe.
2 Cannibalisation describes the effect that renewables (an intermittent generator) can have on the overall power prices, whereby the marginal cost of generation, which in turn drives the power
prices, is lower than the average which would be expected of a continuous base load generator as a result of the additional supply when renewables are generating. Rates differ over time and
between markets but all are affected.
3 Power price forecasts used in the Directors’ valuation for each of GB, SEM (Northern Ireland & Republic of Ireland), France, Germany, Sweden and Spain are based on analysis by the Investment
Manager using data from forward prices available in the market and leading power market advisers. In the illustrative blended price curve, the power price forecasts are weighted by P50 estimates
of production for each of the projects in the Company’s portfolio as at 31 December 2024. Both the December 2023 and December 2024 curves have the same portfolio composition, being the
December 2024 portfolio, so that the like-for-like movement can be seen as there have been disposals in the year.
70
60
50
40
30
20
10
0
2025 2026 2027 2028 2029 2030 2031 2034 20352032 2033 2036 2039 20402037 2038 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050
Blended Curve Dec 24
Real 2023 GBP/MWh
Blended Curve Dec 23
TRIG Annual Report 2024
40
(ii) Change in power price forecast:
The valuation as at 31 December 2024 is based on current power
price forecasts for each of the markets in which TRIG invests,
adjusted, where appropriate, to consider the prices indicated by the
forward markets over the next three years. The forecast prices are
overall significantly lower in the short to medium term, and slightly
higher over the longer term, resulting in a net overall decrease in
valuation of the portfolio by £50.0m.
Forecast price levels are below the level that government interventions
/ windfall taxes commence where such interventions are still effective
(UK and France).
The principal driver of the short to medium-term power price
reductions is a reduction in actual and forecast gas prices, as
relatively mild and wet winters in 2023 and 2024 have reduced
demand and Europe has had higher than long-term average gas
storage and hydroelectricity generation levels. Individual markets have
responded to these factors to different extents with the reductions
in GB (with more limited hydroelectric generation) experiencing less
of a reduction while Spain and Sweden (with greater hydroelectric
production) have experienced more significant reductions. These
markets represent TRIG’s principal exposures to short-term prices.
Longer-term power price forecasts reflect the interplay between
increases in the cost of capital and the cost of building new
renewable plants as well as additional assumed demand from
electrification and the role of green hydrogen. Nuclear capacity build-
out and retirement assumptions in the UK have been delayed, leading
to electricity prices remaining elevated for a longer period in the late
2020s than previously projected.
The weighted average power price forecast used to determine the
portfolio valuation is shown on the prior page in real terms. This is
comprised of a blend of forecasts for each of the power markets in
which TRIG is invested after applying expected PPA power sales
discounts and reflecting cannibalisation.
2
Wholesale power price assumptions shown in the table on the
previous page are after allowing for cannibalisation and before
allowing for PPA discounts which vary by project and are typically in a
range of 2% to 10%.
Cannibalisation is assumed within the adopted power price forecasts
across each jurisdiction. The reduction in captured wholesale
electricity power prices is forecast to be further impacted in each
geography over time as the proportion of production coming from
renewables in each market increases.
(iii) Movement in valuation discount rates:
Yields of long-term government bonds have increased over the year,
particularly in the final quarter of 2024. Government bond yields in
the UK have now increased beyond the levels seen at 30 September
2023 (when the Company last increased the valuation discount rates)
while European rates have increased to broadly the same level as at
30 September 2023.
To reflect the observed differences, the applicable UK valuation discount
rates have been increased by 0.3%, European rates have remained
unchanged. The difference in part reflects differing market views on
inflation and growth expectations between the EU and the UK.
Increases in the discount rates applied have led to a reduction in the
valuation of the investments of £34.1m in 2024.
The weighted average portfolio valuation discount rate as at 31
December 2024 was 8.6% as compared to 8.1% as at 31 December
2023. The discount rates used for valuing each investment represents
an assessment of the annualised rate of return at which it is estimated
infrastructure investments with similar risk profiles would trade on the
open market.
The 0.5% increase in the weighted average discount rate in
2024 reflects:
– An increase of 0.2% in relation to the changes in portfolio
composition:
– The most significant impact from the addition of Fig Power (at a
materially higher discount rate than the average of the portfolio);
– The disposals of Little Raith, Forss, Pallas and part of Gode.
– Market movements of 0.3% including contributions from:
– An increase in UK discount rates of 0.3% over the year
(reflected in Q4)
– The progression of time such that assets with fixed-price
arrangements in the earlier years will see their future returns
become proportionally more exposed to market price
movements (unless current arrangements, notably government-
backed contracts, are renewed) and consequently contain an
increased level of risk
– The changes in forecast assumptions including power prices
and FX
During the period, the Investment Manager has continued to see a
slow market for transacting renewables infrastructure projects amid
a constrained level of capital available to purchase new projects.
Against this challenging backdrop, the Company successfully signed
disposals totalling £185m in 2024 of assets across three markets
at values c.10% above their valuation as at 31 December 2023,
providing market evidence supporting the valuation.
The Company commissioned an independent valuation of the
portfolio and a discount rate benchmarking exercise during the year,
which confirmed that the portfolio valuation and the discount rates
applied were reasonable.
Valuation of the Portfolio continued
Strategic Report Governance Financials
TRIG Annual Report 2024
41
Inflation assumptions used in the portfolio valuation
Index
2024 (Dec on Dec) 2025–2030 2030+
Actual (Forecast at Dec 23: Jun 24) Forecasts unchanged
UK Retail Price Index 3.5% (3.5% : 3.0%) 3.25% 2.5%
UK Consumer Price Index 2.5% (2.75% : 2.0%) 2.5%
UK Power Price 3.5% (3.5% : 3.0%) 3.25% 2.5%
Europe 1.8% (2.75% : 2.7%) 2.0%
* This represents the assumed annual inflation figure for Dec 2023.
1 The majority of the Swedish wind farm income is from wholesale power sales which in the Nord Pool are denominated in Euros, accordingly the investment is treated as Euro denominated.
(iv) Change in inflation assumption:
Inflation applied to cash flows has been adjusted for actual inflation
in all geographies for 2024 (shown below) with the UK RPI in line with
December 2023 forecasts, UK CPI slightly lower than December
2023 forecasts and European inflation significantly lower than
December 2023 forecasts. The longer-term forecast inflation rates for
the UK and the European assets remain unchanged.
The overall impact of changes in actual inflation decreased the
valuation by £24.2m.
(v) Portfolio return:
This refers to the valuation movements in the period (excluding (i) to
(iv) above) and represents an uplift of £64.5m and a 2.6% increase
over the rebased value of the portfolio in the year. The majority of
the portfolio return reflects the net present value of the cash flows
brought forward by 12 months at the prevailing portfolio discount rate
(8.1% for H1; 8.3% for H2).
The difference between the actual portfolio return and the expected
return from the unwind of the discount rate of c. 7p per share over the
year can be predominantly attributed to the following sources:
– Impacts in relation to external grid infrastructure -2.4p including:
– Transmission infrastructure outages at the Hornsea 1 and East
Anglia 1 UK offshore wind projects impact of -1.0p
– Uncompensated grid downtime in Germany at a greater than
forecast level and an increase in allowances for grid downtime
across the portfolio -0.5p
– Increased grid losses for transmission connected UK wind
projects expected to apply from 1 April 2025 -0.9p
– Lower than forecast actual generation and price (excluding the
impacts of grid outages and downtime noted above) -1.8p
– Annual review of operational assumptions including asset-level
energy yields and operating costs -2.4p
– Changes in non-power price revenues assumptions including for
Renewable Energy Guarantees of Origin (REGO) / GoO certificates
and capacity market participation resulted in a negative impact of
c.-0.8p per share
– Following a review of the carrying value of the development-
stage battery projects purchased by TRIG in 2022 against the
development and construction costs paid to date, a negative
valuation adjustment has been made of -0.3p per share
– Profit on disposal in relation to Little Raith, Forss, Pallas and the
partial stake in Gode resulted in a positive impact of 0.7p per share
– Active revenue management across the portfolio resulted in a
positive impact of 0.1p, further detail on which is provided in the
Operations Report
TRIG Annual Report 2024
42
Investment obligations
No new construction commitments were entered into during
2024. At the balance sheet date, the Company had outstanding
investment commitments in relation to the Ryton battery asset
which is in construction.
The commitment amounts shown in the table below also include
development and subsequent construction spend on the Drakelow
battery storage project.
Ryton and Drakelow have a combined size of 168MW / 336MWh
of flexible capacity. Ryton is expected to become operational in H2
2025 and Drakelow in 2028 following a delay in its expected grid
energisation date.
The Fig Power platform overheads and development expenditure for
the next two years of the business plan have also been included.
Gode Wind 1
Sector: Offshore wind
Location: Germany
Net capacity: 32.5
Holding: 9.8%
The timeline of outstanding commitments is presented below
(all commitments are into battery assets / the Fig Power platform):
2025 2026 2027 Total
Outstanding
commitments (£m) £39m £18m £38m £95m
The Managers are progressing further development projects,
including greenfield UK batteries and wind farm repowerings.
Construction costs in respect of these projects, which have later
connection dates, are not included in the Company’s outstanding
commitments as no build contracts have been entered into.
Investment decisions will be appraised in line with the Board’s capital
allocation principles and strategic priorities.
Fully invested portfolio valuation
The valuation of the portfolio on a fully invested basis can be derived
by adding the valuation at 31 December 2024 and the expected
outstanding commitments as follows:
Valuation of portfolio at 31 December 2024 £3,116m
Outstanding commitments £95m
Disposal of partial stake in Gode £(85)m
Portfolio valuation once fully invested £3,126m
Valuation of the Portfolio continued
Strategic Report Governance Financials
TRIG Annual Report 2024
43
Key sensitivities
The following chart illustrates the sensitivity of TRIG’s NAV per share to changes in key input assumptions (with the labels indicating the impact
on the NAV in pence per share of the sensitivities):
For each of the sensitivities, it is assumed that potential changes
occur independently of each other with no effect on any other base
case assumption, and that the number of investments in the portfolio
remains static throughout the modelled life.
The sensitivities assume the portfolio is fully invested. As such, the
Portfolio Value for the sensitivity analysis is the sum of the portfolio
valuation at 31 December 2024 and the outstanding commitments
and disposal as set out above, i.e. £3,126m. Accordingly, in calculating
the sensitivities, which are in the form of NAV per share movement,
it is necessary to make some assumptions on how the outstanding
commitments will be funded. The calculations assume the issue of
further shares to fund the balance of these commitments. In practice,
the outstanding commitments may be funded by surplus cash flows
and / or proceeds from disposals. If investments disposed are of a
similar nature and sensitivity to the portfolio average, this would be
expected to yield a similar sensitivity to that presented above.
Further detail explaining each of the above key sensitivities can be
found on pages 130 to 133.
0 5 10 15 20
-20 -15 -10 -5
-3.7p 3.9p
-14.4p 15.5p
-7.5p 7.4p
-4.5p 5.3p
-5.1p 5.1p
-1.1p 1.1p
0.3p -0.1p
-1.7p 1.7p
-1.3p 1.3p
Discounted rate +/- 0.5%
Output P90/P10 (10 year)
Power price -/+10%
Inflation -/+ 0.5%
Operating costs +/- 10%
Exchange rate -/+ 10%
Interest rate +/- 2%
Tax +/- 2%
Asset Life -/+ 1 yrs
Reduction in assumption Increase in assumption
Impact of sensitivity on NAV per share
TRIG Annual Report 2024
44
Ten largest investments
Set out below are the ten largest investments in the portfolio. As at 31 December 2024, the largest investment (Hornsea One) accounted for
approximately 10% of the portfolio. In total, the ten largest projects accounted for approximately half of the project portfolio.
The table below sets out the top ten largest investments in the portfolio, including investment commitments:
Ten largest investments – Committed basis
% of portfolio by value at
Project Location Type
31 December
2024
31 December
2023
Hornsea 1 England Offshore wind 10% 10%
Jädraås Sweden Onshore wind 7% 7%
Merkur Germany Offshore wind 7% 6%
Beatrice Scotland Offshore wind 6% 7%
East Anglia 1 England Offshore wind 6% 5%
Garreg Lwyd Wales Onshore wind 4% 3%
Grönhult Sweden Onshore wind 3% 3%
Solwaybank England Onshore wind 3%
Ranasjö Sweden Onshore wind 3%
Sheringham Shoal England Offshore wind 3% 3%
December 2024 largest ten investments 51%*
Gode Germany Offshore wind 4%
Crystal Rig II Scotland Onshore wind 3%
December 2023 largest ten investments 49%
* Table does not cast due to rounding.
Overall the committed valuations of the top ten assets have moved as a result of:
– Near-term power price forecast reductions in the year with assets with lower exposure having seen smaller movements and consequently
account for an increased share of the portfolio. In particular assets with CfD or Feed in Tariff support (Hornsea, Beatrice, East Anglia 1,
Merkur and Gode above) have benefited on a relative basis from this.
– Updated forecasts of Transmission loss factors have resulted in a geographic redistribution of charges with lower revenues in some
regions and higher revenues in others, impacting GB offshore wind and larger onshore sites (slightly benefitting assets in England and
more significantly reducing the valuation of assets in Scotland).
– Revisions to expected energy yields have impacted some individual assets adversely.
– The geographic balance of increased levels of forecast inflation and the discount rate increases.
– A 15.2% stake in Gode has exchanged, with completion expected in Q1 2025, this is reflected in the 31 December 2024 table above. The
portfolio retains a 9.8% interest on the Gode wind farm following the partial sale and the retained stake is not in the top ten investments by size.
Valuation of the Portfolio continued
Strategic Report Governance Financials
TRIG Annual Report 2024
45
Investment portfolio
The TRIG portfolio as at 31 December 2024 included 83 equity investments in the UK, France, Sweden, Germany and Spain, comprising
45 wind assets, 33 solar PV assets and 5 battery storage assets. Additionally, the portfolio includes one mezzanine debt investment in a
mixed portfolio and the investment in the Fig Power platform.
Project
Market
(Region)
1
TRIG’s equity
interest
2
Net capacity
(MW)
3
Year
commissioned
4
Onshore Wind Farms
Roos GB (England) 100% 17.1 2013
Grange GB (England) 100% 14.0 2013
Tallentire GB (England) 100% 12.0 2013
Garreg Lwyd GB (Wales) 100% 34.0 2017
Crystal Rig 2 GB (Scotland) 49% 67.6 2010
Hill of Towie GB (Scotland) 100% 48.3 2012
Mid Hill GB (Scotland) 49% 37.2 2014
Blary Hill GB (Scotland) 100% 35.0 2022
Paul’s Hill GB (Scotland) 49% 31.6 2006
Crystal Rig 1 GB (Scotland) 49% 30.6 2003
Solwaybank GB (Scotland) 100% 30.4 2020
Green Hill GB (Scotland) 100% 28.0 2012
Rothes 1 GB (Scotland) 49% 24.8 2005
Freasdail GB (Scotland) 100% 22.6 2017
Rothes 2 GB (Scotland) 49% 20.3 2013
Earlseat GB (Scotland) 100% 16.0 2014
Meikle Carewe GB (Scotland) 100% 10.2 2013
Neilston GB (Scotland) 100% 10.0 2017
Altahullion SEM (N. Ireland) 100% 37.7 2003
Lendrum’s Bridge SEM (N. Ireland) 100% 13.2 2000
Lough Hill SEM (N. Ireland) 100% 7.8 2007
Haut Vannier France (North) 100% 42.5 2022
Venelle France (North) 100% 40.0 2020
Epine France (North) 100% 36.0 2019
Rosières France (North) 100% 17.6 2018
Energie du Porcien France (North) 42% 16.3 2012
Montigny France (North) 100% 14.2 2018
Fontaine-Mâcon France (North) 42% 5.1 2011
Rully France (North) 42% 5.0 2010
Val de Gronde France (North) 37% 4.5 2011
Les Vignes France (North) 42% 4.2 2009
Haut Languedoc France (South) 100% 29.9 2006
Haut Cabardès France (South) 100% 20.8 2006
Cuxac Cabardès France (South) 100% 12.0 2006
TRIG Annual Report 2024
46
Roussas–Claves France (South) 100% 10.5 2006
Jädraås Sweden 100% 212.9 2013
Grönhult Sweden 100% 67.0 2023
Twin Peaks – Ranasjö Sweden 50% 43.4 2024
Twin Peaks – Salsjö Sweden 50% 77.5 2024
Total onshore wind at 31 December 2024 1,207.8
Offshore Wind Farms
East Anglia 1 GB (England) 14.3% 102.4 2020
Hornsea One GB (England) 10.2% 124.2 2020
Sheringham Shoal GB (England) 14.7% 46.6 2012
Beatrice GB (Scotland) 17.5% 102.9 2018
Merkur Germany 35.7% 144.9 2019
Gode Wind 1 Germany 9.8% 32.5 2017
Total offshore wind at 31 December 2024 553.5
Solar Photovoltaic Parks
Parley Court GB (England) 100% 24.2 2014
Egmere Airfield GB (England) 100% 21.2 2014
Stour Fields GB (England) 100% 18.7 2014
Tamar Heights GB (England) 100% 11.8 2014
Penare Farm GB (England) 100% 11.1 2014
Four Burrows GB (England) 100% 7.2 2015
Parsonage GB (England) 100% 7.0 2013
Churchtown GB (England) 100% 5.0 2011
East Langford GB (England) 100% 5.0 2011
Manor Farm GB (England) 100% 5.0 2011
Marvel Farms GB (England) 100% 5.0 2011
Midi France (South) 51% 6.1 2012
Plateau France (South) 49% 5.9 2012
Puits Castan France (South) 100% 5.0 2011
Chateau France (South) 49% 1.9 2012
Broussan France (South) 49% 1.0 2012
Pascialone France (Corsica) 49% 2.2 2011
Olmo 2 France (Corsica) 49% 2.1 2011
Santa Lucia France (Corsica) 49% 1.7 2011
Borgo France (Corsica) 49% 0.9 2011
Agrinergie 1 & 3 France (Réunion) 49% 1.4 2011
Chemin Canal France (Réunion) 49% 1.3 2011
Ligne des 400 France (Réunion) 49% 1.3 2011
Agrisol France (Réunion) 49% 0.8 2011
Valuation of the Portfolio continued
Strategic Report Governance Financials
TRIG Annual Report 2024
47
Agrinergie 5 France (Réunion) 49% 0.7 2011
Logistisud France (Réunion) 49% 0.6 2010
Sainte Marguerite France (Guadeloupe) 49% 1.2 2011
Marie-Galante France (Guadeloupe) 49% 1.0 2010
Valdesolar Spain (Badajoz) 49% 129.2 2021
Arenosas Spain (Cadiz) 100% 58.4 2022
El Yarte Spain (Cadiz) 100% 58.4 2022
Guita Spain (Cadiz) 100% 58.4 2022
Malabrigo Spain (Cadiz) 100% 58.4 2022
Total solar at 31 December 2024 519.1
Battery Storage / Mixed Portfolio
Spennymoor
6
GB (England) 100% 100.0 2031
Ryton
5
GB (England) 100% 74.0 2024
Drakelow
6
GB (England) 100% 90.0 2025
Drax
6
GB (England) 100% 89.0 2029
Broxburn
6
GB (Scotland) 100% 20.0 2018
Fig Platform GB (Various) 100% Various
Phoenix SAS
7
France 0% - 2015
Total Battery Storage / Mixed Portfolio at 31 December 2024 373.0
Total Portfolio at 31 December 2024 2,653.4
Operating assets 2,300.4
Construction assets
5
74.0
Development assets
6
279.0
Total Portfolio at 31 December 2024 2,653.4
1 SEM refers to the Irish Single Electricity Market.
2 This is TRIG’s equity share of the nominal capacity of the asset.
3 This is each project’s generation capacity pro-rated for TRIG’s share of equity capital and subordinated debt.
4 Where a project has been commissioned in stages, this refers to the earliest commissioning date. For construction assets, this refers to expected completion date.
5 The Ryton battery storage project is under construction.
6 The Spennymoor, Drakelow and Drax battery storage projects are in development.
7 This investment is in the form of mezzanine-level bonds where the Company does not have an equity stake. The portfolio comprises five onshore wind farms in Northern France with a
combined capacity of 74MW and four operational solar parks with battery storage located on the islands of Corsica and La Réunion with a combined capacity of 29MW (“the Portfolio”).
All the Portfolio assets are backed by the French Government’s Feed-in Tariff subsidy and have an average year of commission of 2015.
48
TRIG Annual Report 2024
Financial Review
At 31 December 2024, the Group had investments in 85 projects. As an investment entity for IFRS reporting purposes, the Company carries
these investments at fair value. The results below are shown on a statutory and on an “Expanded” basis as we have done in previous years.
See the box below for further explanation.
Basis of preparation
In accordance with IFRS 10, the Group carries investments at fair value as the Company meets the conditions of being an Investment Entity.
In addition, IFRS 10 states that investment entities should measure their subsidiaries that are themselves investment entities at fair value.
Being investment entities, The Renewables Infrastructure Group (UK) Limited (“TRIG UK”) and The Renewables Infrastructure Group (UK)
Investments Limited (“TRIG UK I”), the Company’s subsidiaries, through which investments are purchased, are measured at fair value as
opposed to being consolidated on a line-by-line basis, meaning their cash, debt and working capital balances are included as an aggregate
number in the fair value of investments rather than the Group’s current assets. In order to provide shareholders with more transparency into
the Group’s capacity for investment, ability to make distributions, operating costs and gearing levels, adjusted results have been reported in
the pro-forma tables below.
The pro-forma tables that follow show the Group’s results for the year ended 31 December 2024 and the prior year on a non-statutory
“Expanded basis”, where TRIG UK and TRIG UK I are consolidated on a line-by-line basis, compared to the Statutory IFRS financial
statements (the “Statutory IFRS basis”).
The Directors have provided the non-statutory Expanded basis to assist users of the accounts in understanding the performance and
position of the Company by including the cash and debt balances carried in TRIG UK and TRIG UK I and expenses incurred in TRIG UK
and TRIG UK I.
The necessary adjustments to get from the Statutory IFRS basis to the non-statutory Expanded basis are shown for the primary financial
statements. The commentary provided on the primary statements of TRIG is on the Expanded basis.
This section contains Alternative Performance Measures (“APMs”), which are financial measures not defined in International Financial Reporting
Standards (“IFRS”). Including the non-statutory Expanded basis results shown overleaf. In addition, APMs discussed in this section include
dividend cover, NAV per share and Directors’ Portfolio Valuation. The definition of each of these measures is shown on page 53.
Income statement
The Statutory IFRS does not include
TRIG UK and TRIG UK I’s costs, including
overheads, management fees and
acquisition costs. The Expanded basis
includes the expenses incurred within
TRIG UK and TRIG UK I to enable users
of the accounts to fully understand the
Group’s costs. There is no difference in
profit before tax or earnings per share
between the two bases.
Balance sheet
The Statutory IFRS basis includes
TRIG UK and TRIG UK I’s cash, debt
and working capital balances as part
of Portfolio Value. The Expanded basis
shows these balances consolidated on
a line-by-line basis. There is no difference
in net assets between the Statutory IFRS
basis and the Expanded basis.
The majority of cash generated from
investments had been passed up from
TRIG UK and TRIG UK I to the Company
at 31 December 2024.
At 31 December 2024, TRIG UK I was
£309.2m drawn on its revolving credit facility
(2023: £364.2m drawn) being the majority
of the difference between the Statutory
IFRS basis and the Expanded basis.
Cash flow statement
The Statutory basis shows cash
movements for the top company only
(TRIG Limited). The Expanded basis
shows the consolidated cash movements
above the investment portfolio which
are relevant to users of the accounts.
Differences include income received
by TRIG UK and TRIG UK I applied to
reinvestment and expenses incurred by
TRIG UK and TRIG UK I that are excluded
under the Statutory IFRS basis.
The purchase of investments on the
Expanded basis is funded by both the
Company’s revolving credit facility and
amounts passed down after capital
raises. The remaining balance is that
of reinvestment.
49
Strategic Report Governance Financials
TRIG Annual Report 2024
Income statement
Summary income statement
Year to 31 December 2024
£’m
Year to 31 December 2023
£’m
Statutory
IFRS basis Adjustments
1
Expanded
basis
Statutory
IFRS basis Adjustments
1
Expanded
basis
Operating (loss) / income (158.4) 48.5 (109.9) (24.2) 60.3 36.1
Acquisition costs - (0.3) (0.3) – (0.3) (0.3)
Disposal costs - (1.4) (1.4) – (0.5) (0.5)
Net operating (loss) / income (158.4) 46.8 (111.6) (24.2) 59.5 35.3
Fund expenses (2.7) (29.2) (31.9) (3.4) (32.2) (35.6)
Foreign exchange gain 45.6 8.0 53.6 32.7 2.1 34.8
Finance income / (costs) 0.3 (25.6) (25.3) 0.7 (29.4) (28.7)
(Loss) / profit before tax (115.2) 0.0 (115.2) 5.8 0.0 5.8
EPS
2
(4.7)p - (4.7)p 0.2p – 0.2p
1 The following were incurred within TRIG UK and TRIG UK I: acquisition costs, disposal costs, the majority of expenses and acquisition facility fees and interest. The income adjustment offsets
these cost adjustments.
2 Calculated based on the weighted average number of shares during the year being approximately 2,475.1 million shares.
Analysis of Expanded basis financial results
Loss before tax for the year to 31 December 2024 was £(115.2)m, generating loss per share of (4.7)p, which compares to profit of £5.8m
and earnings per share of 0.2p for the year to 31 December 2023.
The EPS of (4.7)p reflects a valuation loss with a reduction in portfolio valuation in the year (which is reflected as Operating Loss). Factors
adversely impacting valuation include reduced power price forecasts, lower forecast inflation, below budget generation, an increase in discount
rates applied to UK assets and energy yield revisions in the year. Foreign exchange valuation impacts were mostly offset by gains on hedging.
The portfolio valuation discount rate has increased in the year to 8.6% (2023: 8.1%) reflecting an increase in the discount rate applying to UK
investments, changes in portfolio composition, exposure to merchant revenues and the impact of including the higher-risk investment in Fig
Power, a UK-based developer focused on battery storage projects, within the portfolio discount rate. The factors causing the movement in the
valuation are more fully described in the Valuation of the Portfolio section on page 38.
Acquisition costs of £0.3m (2023: £0.3m) predominantly relate to the investment in the year in Fig Power.
Disposal costs of £1.4m (2023: £0.5) relate to the disposal of Little Raith and Forss onshore wind farms in the UK and Pallas, an onshore wind
farm located in the Republic of Ireland.
Fund expenses of £31.9m (2023: £35.6m) includes all operating expenses and £28.4m (2023: £30.6m) fees paid to the Investment and
Operations Managers. Management fees are charged as follows: at 1% of Adjusted Portfolio Value up to £1bn, 0.8% of Adjusted Portfolio Value
in excess of £1bn, 0.75% of Adjusted Portfolio Value in excess of £2bn and 0.7% of Adjusted Portfolio Value in excess of £3bn. This is set out in
more detail in Related party and key adviser transactions, Note 17 to the financial statements.
During the year, Sterling strengthened against the Euro by 5% resulting in an adverse foreign exchange valuation movement for
Euro-denominated assets, giving a valuation loss of £66.4m (2023: £31.2m loss). However, this is mostly offset by a gain on foreign exchange
hedges and cash and debt balances held at Group level of £53.6m (2023: £34.8m loss) recorded in the Income Statement. The net foreign
exchange loss in the year is hence £12.8m (2023: £3.6m gain).
Finance costs relate to the interest and fees incurred relating to the Group’s revolving credit facility (“RCF”).
The RCF interest charge in the year was lower than the prior year due to lower average drawings on the RCF of £333.0m (2023 average:
£400.7m) slightly offset by a higher average interest rate of 6.4% in the year (2023 average: 6.0%).
Drawings on the RCF are usually made in the currency required to fund the underlying transaction and so are a mix of Sterling and Euro.
The majority of the drawings were in Sterling at 31 December 2024 (RCF drawings were 64% Sterling at 31 December 2024). The interest rate
charged on Euro amounts is lower than the interest rate for Sterling which also leads to a slightly lower interest charge than if the drawings
were entirely in Sterling.
50
TRIG Annual Report 2024
Financial Review continued
Ongoing charges
Ongoing charges (Expanded basis)
Year to 31 December 2024
£’000s
Year to 31 December 2023
£’000s
Investment and Operations Manager’s fees 28,403 30,585
Audit fees 414 489
Directors’ fees and expenses 379 375
Other ongoing expenses 2,333 2,590
Total expenses
1
31,529 34,039
Average Net Asset Value 3,033,040 3,266,919
Ongoing Charges Percentage 1.04% 1.04%
1 Total expenses excludes £0.3m (2023: £1.6m) of lost bid and other expenses incurred during the year.
The Ongoing Charges Percentage (OCP) is 1.04% (2023: 1.04%). The ongoing charges have been calculated in accordance with Association
of Investment Companies (“AIC”) guidance and are defined as annualised ongoing charges (i.e. excluding acquisition costs and other non-
recurring items) divided by the average published undiluted Net Asset Value in the year. The Ongoing Charges Percentage has been calculated
on the Expanded basis and therefore takes into consideration the expenses of TRIG UK and TRIG UK I as well as those of the Company.
The OCP level is unchanged year-on-year though is expected to reduce in future years as further divestments are realised.
There has been no change to the basis on which the Managers’ fees are calculated. There is no performance fee paid to the Managers.
Balance sheet
Summary balance sheet
As at 31 December 2024
£’million
As at 31 December 2023
£’million
Statutory
IFRS basis Adjustments
Expanded
basis
Statutory
IFRS basis Adjustments
Expanded
basis
Portfolio Value 2,800.7 314.9 3,115.6 3,140.8 368.3 3,509.1
Working capital - (5.8) (5.8) 0.3 (4.4) (4.1)
Hedging (liability) / asset
1
43.9 - 43.9 15.1 - 15.1
Debt - (309.2) (309.2) - (364.2) (364.2)
Cash 11.7 0.1 11.8 18.1 0.3 18.4
Net assets
1
2,856.3 - 2,856.3 3,174.3 - 3,174.3
Net Asset Value per share 115.9p - 115.9p 127.7p - 127.7p
1 The hedging liability has been shown net above, this consists of current and non-current asset and liability balances relating to FX forward contracts. This is discussed further in Note 16 of the
financial statements.
Analysis of Expanded basis financial results
Portfolio Value has decreased by £393.5m in the year to £3,115.6m, predominantly as a result of a reduction in valuation as described above
and as described more fully in the Valuation of Portfolio section on page 38 and also as a result of divestments made in the year.
Hedging assets and liabilities represent the value of outstanding foreign exchange derivatives used to manage the Company’s risk to
movements in the foreign exchange rate between Sterling and Euro. Working capital amounts include debtors, liabilities and capitalised
financing costs.
Group cash at 31 December 2024 was £11.8m (2023: £18.4m) and RCF debt drawn at 31 December 2024 was £309.2m (2023: £364.2m).
Net assets decreased by £318.0m in the year to £2,856.3m. The Company incurred a £115.2m loss in the year, with net assets being stated
after accounting for dividends paid in the year of £183.5m. In addition, share buybacks reduced net assets by the £21.3m invested in the period
to repurchase 22.1m shares. Other movements in net assets totalled £2.0m, being the Managers’ shares, which form part of the management
fee accrued at 31 December 2024 and to be issued on or around 31 March 2025.
51
Strategic Report Governance Financials
TRIG Annual Report 2024
Net asset value (“NAV”) and Earnings per share (“EPS”) reconciliation
NAV per share as at 31 December 2024 was 115.9p compared to 127.7p at 31 December 2023.
NAV per share Shares in issue (m) Net assets (£’m)
Net assets at 31 December 2023 127.7p 2,485.1 3,174.3
(Loss) / EPS to 31 December 2024 (4.7)p
1
- (115.2)
Shares issued (net of costs) - 0.8 1.0
Shares repurchased 0.2 (22.1) (21.3)
Dividends paid in 2024
2
(7.4p) - (183.5)
H2 2024 Managers’ shares to be issued - 0.9 1.0
Net assets at 31 December 2024
3
115.9p 2,464.8 2,856.3
1 Calculated based on the weighted average number of shares during the year being 2,475.1 million shares.
2 1.795p dividend per share paid 31 March 2024 relating to Q4 2023 (£44.6m), 1.8675p dividend per share paid 30 June 2024 relating to Q1 2024 (£46.4m), 1.8765p dividend per share paid
30 September 2024 relating to Q2 2024 (£46.4m) and 1.8765p dividend per share paid 31 December 2024 relating to Q3 2024 (£46.1m).
3 Balance may not cast due to rounding.
Cash flow statement
Summary cash flow statement
Year to 31 December 2024
£’m
Year to 31 December 2023
£’m
Statutory
IFRS basis Adjustments Expanded basis
Statutory
IFRS basis Adjustments Expanded basis
Cash received from investments 204.8
1
33.0 237.8 194.1
1
144.4 338.5
Operating and finance costs (2.0)
2
(51.4) (53.4) (2.3)
2
(53.5) (55.8)
Distributable cash flow 202.8 (18.4) 184.4 191.8 90.9 282.7
Debt arrangement costs – – – – (6.4) (6.4)
Foreign exchange gains / (losses) 16.3
3
(1.5) 14.8 0.6
3
(2.6) (2.0)
Issue of share capital (net of costs) 2.0 (2.0) – 2.0 (2.0) –
Shares repurchased (20.9)
5
– (20.9) – – –
Acquisition facility drawn / (repaid) – (55.0) (55.0) – (34.3) (34.3)
Purchase of new investments
(including acquisition costs) (23.1) (25.8) (48.9) (24.6) (67.1) (91.7)
Divestment of investments
(including disposal costs) – 102.5 102.5 – 21.0 21.0
Dividends paid (183.5) – (183.5) (176.2) – (176.2)
Cash movement in year (6.4)
4
(0.2) (6.6) (6.4)
4
(0.5) (6.9)
Opening cash balance 18.1 0.3 18.4 24.5 0.8 25.3
Net cash at end of year 11.7 0.1 11.8 18.1 0.3 18.4
The statutory IFRS basis as disclosed above is derived directly from the statutory cash flow statement included within this Annual Report on page 120. However, it includes certain figures and
subtotals that are a summation of a number of the statutory numbers as described in the following footnotes and therefore do not tie directly to the statutory IFRS cash flow statement. The Group
considers cash received from investments, being the total cash through both interest and dividends from the investments but also capital repayments of investments, to represent a useful metric for
users of the financial statements, as it is total cash received from investments. Distributable cash flow is also a useful metric as it includes the impact of the operating and financing costs to provide
users of the financial statements the total cash available for reinvestment or distributions. The closest IFRS measure to distributable cash flow is net cash from operating activities. The following
footnotes reconcile these measures and also explain how certain statutory cash flow statement line items reconcile to some of the line items included above within the ‘statutory IFRS basis’ column.
Cash flow from operating activities of £132.1m (2023: £132.9m) (see page 120) is the £202.8m (2023: £191.8m) distributable cash flow minus £87.6m (2023: £59.5m) as explained in footnote 1 plus
£16.9m (2023: £0.6m) explained in footnote 3 below.
1 Cash received from investments of £204.8m (2023: £194.1m) under the Statutory IFRS basis is made up of £117.2m (2023: £134.6m) of interest received from investments (included within net cash
from operating activities) and £87.6m (2023: £59.5m) of loan stock repayments received (included within net cash from investing activities).
2 Operating and finance costs of £(2.5)m (2023: £(2.0)m) under the Statutory IFRS basis is made up of cash generated by operations of £14.6m (2023: £(2.4m)) plus interest income from cash on
deposit of £0.3m (2023: £0.7m) less the realised exchange gains FX forwards of £16.9m (2023: £0.7m).
3 Foreign exchange gains of £16.3m (2023: £0.6m) is the realised exchange gains FX forwards of £16.9m (2023: £0.7m) plus exchange loss on cash of £(0.6)m (2023: £(0.1)m).
4 Cash movement in the year of £(6.4)m (2023: £(6.4)m) is net decrease in cash and cash equivalents of £(5.8)m (2023: £(6.3)m) plus exchange loss on cash of £(0.6)m (2023: £(0.1)m).
5 Shares repurchased settled in cash of £20.9m (2023: nil), consists of £21.3m (2023: nil) shares repurchased (Note 15) less £0.4m (2023: nil) shares to be settled after 31 December 2024.
52
TRIG Annual Report 2024
Financial Review continued
Analysis of Expanded basis financial results
Cash received from investments in the year was £237.8m (2023: £338.5m). The decrease in cash received compared with the previous year
reflects the decrease in the size of the portfolio following divestments and lower achieved power prices in the year and some asset-specific
downtime such as offshore wind farm offshore electricity transmission cable failures. The adjustments reflect working capital movements and
cash flow available for reinvestment and proceeds in the year.
Dividends paid in the year totalled £183.5m. Dividends paid in the prior year totalled £176.2m
Distributable cash flow in the year was £184.4m (2023: £282.8m) and covers dividends paid of £183.5m in the year (2023: £176.2m) by 1.0
times, or 2.1 times before factoring in amounts invested in the repayment in project-level debt. The Group repaid £206m (2023: £219m) of
project-level debt (pro-rata to the Company’s equity interest) in the year.
There were no equity funds raised in the year (2023: nil). Shares repurchased through the share buyback programme totalled £20.9m (2023: nil).
In the year, £48.9m was applied to fund construction spend at existing investments. In addition the RCF balance was reduced in the year
by £55m. The investments made, the RCF reduction and share buybacks were funded through the application of divestment proceeds and
reinvestment of surplus cash flows.
Cash balances decreased in the year by £6.6m.
Included in outstanding commitments are construction costs relating to the Ryton and Drakelow battery storage projects and the funding of the
Fig Power platform.
2025
(£’m)
2026
(£’m)
2027
(£’m)
Tota l
(£’m)
Outstanding commitments 39 18 38 95
Related parties
Related party transactions are disclosed in Note 17 of the financial statements.
Financing
The Group’s £500m RCF is with a banking group comprising Royal Bank of Scotland International, National Australia Bank, ING, Barclays,
Lloyds, BNP Paribas, ABN Amro, Skandinaviska Enskilda Banken (SEB) and Intesa Sanpaolo. The facility expiry date is 31 March 2028 with
options to extend (with bank consent) for up to an additional 24 months. The Group has agreed ESG KPIs with the RCF bank group that may
lead to future margins increasing or reducing (dependent on whether the targets are met) by up to 0.05%. The base margin before any ESG KPI
adjustment has reduced to 1.75% over the relevant reference rate.
The RCF can be drawn in Sterling or Euros and enables the Group to fund new acquisitions, development and construction activity and to
provide letters of credit should they be required. It also includes a £60m working capital element.
The short-term financing provided by the RCF is limited to 30% of the Portfolio Value. It is intended that any drawings used to finance
acquisitions are repaid through equity fundraisings, excess cash flows from operations, disposal proceeds and new term debt.
The RCF drawings at 31 December 2024 were £309m (2023: £364m), the balance was reduced during the year using proceeds from
divestments. It is expected that proceeds will be received in early March 2025 from the sale of a 15.2% stake in Gode offshore wind farm, which
was announced 1 August 2024, and upon receipt the RCF balance will reduce to c. £230m. During 2024, retained cash and RCF drawings
have been applied to fund construction spend predominately of the Ranasjö and Salsjö onshore wind farms, the Ryton and Drakelow battery
storage projects and the acquisition of Fig Power.
In addition to the RCF, the projects may have underlying project-level debt. There is an additional gearing limit in respect of such debt, which
is typically non-recourse to TRIG, of 50% of the Gross Portfolio Value (being the total enterprise value of such portfolio companies), measured
at the time the debt is drawn down or acquired as part of an investment. The Group may, in order to secure advantageous borrowing terms,
secure a project finance facility over a group of portfolio companies.
The majority of the projects within the Company’s investment portfolio have underlying long-term debt (by value, 56% of the Group’s
investments have project finance raised against them and 44% are ungeared).
The project-level gearing at 31 December 2024 across the portfolio was 37% (December 2023: 37%). Principal repayments in the year totalled
£207m, as the debt is retired over the project’s subsidy periods. The project-level gearing percentage has remained level whilst repayments in
the period have reduced project-level debt as the reduction in valuation has reduced the enterprise value of the portfolio.
The majority of the project debt is fixed and has an average cost of 3.5% (including margin). The project-level debt is fully amortising and repaid
in each case over the period of the subsidy term. The portfolio weighted average subsidy life remaining is nine years.
53
Strategic Report Governance Financials
TRIG Annual Report 2024
Alternative Performance Measures (“APMs”)
We assess our performance using a variety of measures that are not specifically defined under IFRS. These Alternative Performance Measures
are termed “APMs”. The APMs that we use may not be directly comparable with those used by other companies.
These APMs are consistent with prior years and are used to present an alternative view of how the Company has performed over the year and
are all financial measures of historical performance. These are commonly used by investment companies.
The table below defines our APMs and how they relate to the Company’s subsidiaries, The Renewables Infrastructure Group UK Limited (“TRIG
UK”) and The Renewables Infrastructure Group UK Investments Limited (“TRIG UK I”).
Performance measure Definition Calculation Reconciliation to IFRS
Investments made
This is a measure of amounts invested
into the portfolio of investments less
any amounts relating to refinance
proceeds or sell-downs.
It is calculated as £48.9m and is reconciled to the
IFRS measure on page 51 in the summary cash
flow statement.
The IFRS measure of investments made
(£23.1m) consists of funding into TRIG
UK and TRIG UK I which is shown in
more detail in Note 12 of these financial
statements.
NAV per share
Net Asset Value (“NAV”), being the
value of the investment company’s
assets, less any liabilities it has.
The NAV per Ordinary Share in the
Company.
It is calculated as the NAV divided by the total
number of shares in issue at the balance sheet
date and shares to be issued. The total number
of shares in issue and shares to be issued is
2,464,775,058 as at the balance sheet date.
The calculation uses IFRS measures and
is set out in Note 11.
Total shareholder
return (share price
appreciation plus
dividends paid) for
the year
The Internal Rate of Return upon the share price at 29 December 2023 (113.8p) of
dividends (quarterly as paid totalling 7.3975p plus the share price at 31 December 2024
(85.8p)).
The dividend of 7.3975p can be
reconciled to the sum of the four quarterly
dividends from 31 December 2023 to 30
September 2024 as detailed in Note 10
of the financial statements.
Annualised total
shareholder return
since IPO
The annualised Internal Rate of Return upon the share price at 26 July 2013 (100.0p) of
dividends (totalling 73.778p) plus the share price at 31 December 2024 (85.8p). This gives
an annualised total shareholder return since IPO of 4.5%.
There are no IFRS measures in this APM.
Annualised total
return on a NAV
per share plus
dividends basis
since IPO
The movement in the NAV per
Ordinary Share, plus dividends per
Ordinary Share paid to shareholders
since IPO.
It is calculated as the extended IRR (“XIRR”)
of the starting NAV at IPO being 98.1p and
dividends paid since IPO (71.91p) and the NAV
as at balance sheet date being 115.9p, plus
quarterly dividends due per Ordinary Share being
1.8675p, totalling 117.8p. This gives an annualised
total return on a NAV per share plus dividends
basis since IPO of 7.6%.
The calculation of the NAV is in line with
IFRS measures.
Dividend yield
The percentage return of the dividend
relative to the share price.
The dividend target for the 2025 financial year
(7.55p) divided by the share price as at 31
December 2024 (85.8p), totalling a 8.8% dividend
yield.
There are no IFRS measures in this APM.
Dividend cover
Dividend cover when expressed on a
cash basis has cash dividends paid
as the denominator and is calculated
as 1.0 times for 2024.
Dividend cover is calculated as distributable
cash flow (which is an Expanded basis measure
explained in the Financial Review section on page
48) divided by dividends paid in the year.
Distributable cash flow is reconciled to
the IFRS measure on page 51.
Distributable cash
flow per share
An expression of the Company’s cash
flows available for distributions and /
or investment on a per share basis.
This is the distributable cash flow figure reported on
an Expanded basis shown in the Financial Review
section on page 48, divided by the weighted
average number of shares in issue during the year
of approximately 2,475.1 million shares.
Distributable cash flow is reconciled to
the IFRS measure on page 51.
Directors’ Portfolio
Valuation
TRIG invests in its portfolio through its
subsidiaries, TRIG UK and TRIG UK I.
This is a measure of the valuation
of the portfolio of investments only.
It is exclusive of cash, working capital
and debt balances in TRIG UK and
TRIG UK I.
Directors’ Portfolio Value (or Portfolio Value)
is reconciled to investments at fair value
through profit or loss in Note 12 of these
financial statements.
The IFRS measure of investments at
fair value through profit or loss is the
Directors’ Portfolio Value plus the fair
value of net assets including cash,
working capital and debt held in TRIG UK
and TRIG UK I.
Debt reduction
and the value
achieved on partial
sale of Gode
Total debt repaid during the year. Sum of project-level debt repayments during
the year of £206m and reduction in Company
RCF borrowings of £55m, and would increase to
£134m, including the proceeds from the partial
disposal of Gode Offshore wind farm of £85m
which are expected in early March 2025.
There are no IFRS measures in this APM.
Portfolio gearing
This is a measure of the level of
debt within the portfolio relative to
enterprise value of the portfolio.
Project-level gearing as a percentage of
enterprise value (calculated as Portfolio Value
plus project-level debt).
The Expanded Basis Portfolio Value
is used within the calculation, this is
reconciled to the IFRS measure of
Portfolio Value on page 50.
54
TRIG Annual Report 2024
Viability Statement
The Directors have assessed the viability
of the Group over a five-year period to
December 2029.
In making this statement the Directors have considered the resilience
of the Group, taking account of its current position, the principal
risks with a high residual impact facing the business (being the
level of electricity production, including as a result of weather
resource and operational performance; the level of future energy
prices; and regulatory change, including continued government
support for renewable subsidy payments and consideration of
intervention by governments in the electricity generation market,
and counterparty credit), in severe but plausible downside scenarios
and the effectiveness of any mitigating actions. These risks are
included amongst other risks faced by the Group in the Risk and Risk
Management section.
As part of being a self-managed Alternative Investment Fund, the
Directors, together with the Managers, rigorously assess the risks
facing the Group and consider sensitivity analysis against the
principal risks identified.
The Directors have determined that the five-year period to December
2029 is an appropriate period over which to provide this viability
statement as this period accords with the Group’s business planning
exercises and is appropriate for the investments owned by the Group.
The Group’s risk management processes (described in the Risk and
Risk Management section) consider the key risks during this five-year
period and beyond. These include sustainability-related risks that take
into account environmental, social and governance considerations,
one of which is climate change (in line with the recommendations of
the Taskforce on Climate-related Financial Disclosures (“TCFD”)). See
the TCFD section for further details on page 68.
TRIG is the owner of a portfolio of project companies whose
underlying assets are predominately fully constructed and operating
renewable electricity generating facilities with economic lives
significantly in excess of the period being considered. As a result,
TRIG benefits from resilient, long-term cash flows and a set of
risks that can be identified and assessed, noting that from time to
time, risks may manifest that have not been anticipated. Over the
next five years, 74% of portfolio revenues are fixed per MWh under
government subsidies and fixed-price Power Purchase Agreements
(“PPAs”)assuming expected generation levels. Forecast revenues
for wholesale power prices are based upon independent forecasts.
The projects are each supported by detailed financial models.
The Directors believe that diversification within the portfolio of
projects (including but not limited to technologies, geographies, and
counterparties) helps to withstand and mitigate for risks it is most
likely to meet.
The Investment Manager prepares and considers, and the Directors
review, summary five-year cash flow projections each year which
are refreshed quarterly as part of management reporting, business
planning and dividend approval processes. The projections consider
cash balances and liquidity, key covenants and limits, dividend cover,
investment policy compliance and other key financial indicators over
the five-year period. Sensitivity analysis considers the potential impact
of the Group’s principal risks occurring (individually and together).
These projections are based on the Managers’ expectations of future
asset performance, income and costs, and are consistent with the
methodology applied to produce the valuation of the investments.
The Directors review significant changes to the Company’s cash
projections each quarter with the Managers as part of the quarterly
Board meetings. The viability assessment assumes continued
government support for existing subsidy arrangements. Generally,
subsidy payments, which comprise an important element of the
Group’s revenues alongside electricity sales into the wholesale
market, are considered to be robust as governments continue
to support the transition towards renewable energy generation.
Subsidy earnings are spread across several jurisdictions (currently
UK, Germany and France) where it is expected that governments
will act consistently with their promises, especially in a sector which
continues to need to mobilise large amounts of capital.
The Directors believe that, whilst the risk to the value of the
Company’s investments, its ability to operate its projects and
generate revenue presented by the current environment is significant
(such as uncertain future inflation levels and interest rates, global
conflicts, potential global trade tariff increases, regulatory change
and global supply chain issues), there has been limited disruption to
the business to date and the risk-mitigating activities have served to
reduce the impact. The Directors continue to work with the Managers
to ensure that the portfolio of investments are able to operate as
effectively as possible. The Managers have performed downside risk
scenario planning encompassing a range of potential outcomes and
these demonstrate that, whilst profitability may be adversely affected,
the Company and its investments are expected to remain viable.
The Company has assessed its resilience over the five-year period
against severe, albeit plausible, individual, and combined stress
scenarios
1
covering principal risks the Company faces.
Of the principal risks, the Directors consider the most significant
risk affecting financial resilience to be the level of achieved power
price income.
The investments in renewable energy projects held by the Company
generally have low operating costs as a proportion of expected
income and so a significant reduction in revenues can be sustained
which, whilst reducing income available to pass up to the Company
including that available to pay dividends, would not be expected
to threaten solvency. Where the investments have long-term debt
financing in place, repayments of principal debt are substantially
covered by projected revenues arising from subsidies and other
fixed-price income (per unit of power generated). This assumes
normal levels of generation. It is expected that government subsidies
will continue to be in place and, in cases where these have been
amended or withdrawn in the past, these have tended to be isolated
or specific cases.
Withdrawal of specific subsidy income from retroactive government
action, should it manifest, may threaten the solvency of individual
projects. The investments with senior debt in place are typically non-
recourse to the Company and so should these projects become loss-
making, the Company would not have an obligation to fund these.
The Company considers wholesale withdrawal of subsidy income
in any of the countries it operates in as very unlikely, and any
amendment or reduction would be more likely to be in isolated cases.
The downside scenarios run by the Managers, which include cases
with lower revenues, are considered to have a similar or more severe
impact than limited subsidy withdrawal / amendment, and the viability
of the Company continues to be demonstrated in these cases as
described below.
1 The combined scenario identifies the downside case for both the P90 case and the Power Price minus 10% case. This downside scenario assumes both lower power prices (-10%) and lower
generation (P90) across the forecast period. See Note 4 in the Financial Statements for sensitivities.
55
Strategic Report Governance Financials
TRIG Annual Report 2024
The Company has considered an extreme downside case to be
assuming significantly lower achieved power prices (at half the level
currently forecast). Due to the low operating costs and that the long-
term fixed-rate project-level debt is expected to be covered by the
subsidy streams that would continue to be paid, this scenario showed
that the investments continued to be solvent and able to pass up
distributions to the Company. The cash available to the Company to
pay dividends and to reinvest would be reduced significantly such
that if dividends were not reduced, the dividend coverage (after
project-level debt repayment) would reduce to below 1.0x (to an
estimated level of c. 0.8x) and hence the current level of dividend
might not be sustained. However, dividends are discretionary and
hence solvency and resilience in this scenario are maintained.
The Company takes an average of three power price forecasters’
central cases to include in its valuation to estimate future market
prices. Forecasters include both high and low cases in their forecasts.
A reduction of power prices by half is below the forecasters’ low case
scenarios. The probability attached to power prices being lower than
the forecasters’ low cases would typically be estimated by forecasters
to be below 10%, suggesting this would be an unlikely downside case.
Less severe downside cases were run assuming 10% lower power
price projections compared to the base case, reduced generation
levels assuming a P90 case (see Note 4 in the Financial Statements)
and a combination of these scenarios were assessed. In all scenarios
including the combined downside case, the Company remained solvent
and could continue to pay dividends at, or close to, current levels.
TRIG has a revolving credit facility (“RCF”) at fund level which was
extended and reduced to a facility size of £500m on 5 February 2025.
The renewed facility expires on 31 March 2028. The level of amounts
drawn is detailed in the Report of the Directors. The Company has
historically used the proceeds from equity fund raises to repay
the RCF, as well as operational cash from investments. Projected
reinvestment flows over the next five years continue to be reasonable.
The Company has completed some disposals of investments in the
year and expects to complete further disposals during 2025 and to
apply these proceeds to reduce the RCF balance. In the event that
equity fund raises, reinvestment cash flows and disposal proceeds
are not sufficient to repay the RCF balance by the expiry date, the
Company would anticipate either renewing the RCF and / or raising
new debt to repay that balance secured against ungeared projects
within the portfolio (that represent 44% of the portfolio by value) and /
or strategic disposals or a combination of all three activities.
Of the renewable energy projects TRIG owns, 56% have long-term,
fixed-rate, amortising senior debt in place. These projects do not
need to be refinanced and the debt within these projects is scheduled
to be repaid, in the main, from expected revenues arising from
subsidies and fixed-price PPAs over the term of that fixed-price-per-
MWh income. Of the renewable energy projects TRIG owns, 44% by
value are ungeared.
The Company’s dividend policy is to increase the dividend when
the Board considers it prudent to do so, considering forecast cash
flows, expected dividend cover, inflation across TRIG’s key markets,
the outlook for electricity prices and the operational performance of
the Company’s portfolio. Dividends are discretionary and declared
quarterly. Each year, as the target dividend for the next financial
year is set, the Directors consider the expected forward-looking
cash flows and consider the sustainability of the proposed dividend.
Each quarter, as dividends are declared, the Directors consider the
projected cash flows, covenants of the Company and dividend cover
levels. Cash dividend cover projections over the five-year period
remain reasonable.
As explained in the Chair’s Statement and in the Risk and Risk
Management section, the Directors do not consider that the risks
to the Company resulting from the current environment (such as
uncertain future inflation levels and interest rates, global conflicts,
regulatory change and global supply chain issues), significantly affect
the principal risks set out above. The Group’s projects have continued
to operate during this time and the Managers and Directors believe
the risks are reducing and continue to be manageable.
Based on this review, the Directors confirm that they have a
reasonable expectation that the Company will be able to continue
in operation and meet its liabilities as they fall due over the five-year
period to December 2029.
56
TRIG Annual Report 2024
Approach to risk management
TRIG’s risk management framework covers all aspects of the Group’s
business. As TRIG is an Investment Company with key services
outsourced to the Investment Manager, Operations Manager and
other service providers, reliance is placed on the systems and
controls of these service providers.
The identification, assessment and management of risk are integral
elements of the Investment Manager’s and the Operations Manager’s
work in both managing the existing portfolio and in transacting
investment opportunities. The Managers use their combined experience
and input from the Board of Directors to identify risks through various
means, including but not limited to: monitoring of macroeconomic
indicators, insight from transaction processes, updates on operational
performance from project-level Board meetings, counterparty credit
analysis, and monitoring of potential regulatory and policy changes.
The Company also has a range of advisers in addition to its Managers
that report on key topics and potential events which may present risks
that the Board and the Managers need to monitor and, where possible,
mitigate. In addition, the Company and its Managers are registered with
various industry bodies which alert both the Board and the Managers of
emerging risks as key events and news items unfold.
The output of the Managers’ risk assessment is incorporated into the
risk framework, which is maintained by the Investment Manager and
discussed formally on a quarterly basis by the Investment Committee,
Advisory Committee and the Board of Directors. The discussion of
the risk matrix includes consideration as to whether TRIG is within the
Company’s risk appetite.
The inherent risk of each existing and emerging risk is assessed
based on their likelihood of occurring and their potential impact should
they manifest. Where necessary and possible, mitigation plans are
developed to reduce the residual risk. The Managers utilise their
systems, their policies, oversight of the supply chain and third-party
input to manage these risks. The strength of mitigants and controls
is applied to the inherent risk to determine the residual risk, which is
classified as ‘high’, ‘medium’, ‘low’ or ‘insignificant’. If a new risk arises or
the likelihood of a risk occurring increases, a mitigation strategy is, where
appropriate, developed and implemented together with enhanced
monitoring by the Investment Manager and / or Operations Manager.
Given the stability of the Company’s investment policy and focus of its
strategy (i.e. investments in renewable energy infrastructure projects
in the UK or Europe), the risks in the Group are not expected to
change materially from quarter to quarter. The Board’s Management
Engagement Committee also reviews the performance of the
Investment Manager and Operations Manager (as well as all key
service providers) annually, which includes a consideration of the
sufficiency and effectiveness of the Managers’ internal controls and
the Investment Manager’s maintenance of the risk framework.
Principal risks and uncertainties
The Board and the Managers have considered and reviewed the
Company’s principal risks.
Portfolio generation can deviate from budget assumptions for a
number of reasons including (but not limited to): resource variance,
third-party grid outages and availability. Energy yields continue to be
re-assessed in detail as part of the portfolio valuation process with
changes to assumptions in the December 2024 valuation exercise
reducing overall portfolio P50 generation by c. 95GWh (approximately
1.5% of annual production).
Power prices in 2024 continued to fall from the highs seen in 2022
/ 2023, and were particularly low in the Nordics and Iberia where
there was higher than average hydro levels. The power price outlook
for 2025 is improved compared to 2024 with attractive revenue
fixes having been put in place for the coming year as part of TRIG’s
revenue management strategy. Price volatility remains as increasing
variable generation capacity across Europe has led to greater
instances of negative intraday pricing highlighting the case for storage
and the requirement for an active revenue management strategy.
Regulatory and political risk remains elevated as governments
continue to consider energy market policy to meet decarbonisation
commitments and ensure energy affordability for consumers. The
potential for further shocks arising from global geopolitical conflicts
remains. Public policy decisions resulting in significant increases in
government bond yields has weighed on the Company’s share price
performance in 2024. The Managers are yet to see higher reference
rates translate into private market valuations for renewables assets
with £185m sales signed since the start of 2024 at a weighted average
c.10% premium to carrying value. TRIG has little cash flow exposure to
higher interest rates with the vast majority of debt being fixed-rate and
amortising, therefore without refinancing or interest rate risk.
The risks arising from these elements are embedded in risk factors
already identified by the Board and the Managers. As such, the Board
and the Managers have concluded that:
– There continues to be three enduring risks with a ‘high’ residual
impact for the Company being: (i) energy yield; (ii) electricity pricing;
and (iii) political / regulatory
– At present, counterparty exposure risk is also considered to
be temporarily elevated given the current macro environment.
We note that the financial performance of the major equipment
manufacturers that have supplied wind turbines to projects in
TRIG’s portfolio has improved across 2024. They will continue to be
closely monitored to ensure that improvement is sustained prior to
any adjustment being made to the risk rating.
– Overall, there have been no material changes to principal risks
faced by the Company.
The tables on the following pages summarise the principal risks faced
by the Group. These are risks which are either classified as having
a residual impact of ‘medium’ or ‘high’, or those identified by the
Managers and the Board as having the potential for high reputational
risk (even where the residual risk is considered ‘low’). They are not an
exhaustive list of risks and uncertainties faced by the Group; however,
risks that are not considered ‘principal risks’ are still captured,
assessed and monitored through the Company’s risk reporting
framework. The Investment Report section provides additional
commentary on how the risk landscape faced by the Company has
evolved during the year.
The risks posed by climate change, though not expected to be
material to the Company in the short to medium term, are an integral
part of the Investment Managers’ risk management framework.
Further information on the assessment and management of climate-
related risks is disclosed separately in the Task Force on Climate-
related Financial Disclosure section.
Risk and Risk Management
Impact and
likelihood
Financial and
non-financial (e.g.
reputational) impact
Pre-mitigation/
inherent risk
Macro indicators
Transaction activity
Project operations
Counterparty analysis
Regulatory changes
Third party advice
Control identification
and implementation
Post-control risk rating
assessed
Inclusion on risk
dashboard and matrix
Quarterly Advisory
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57
Strategic Report Governance Financials
TRIG Annual Report 2024
Principal risk
Energy yield
Residual risk rating
High
Link to strategy
Balanced Portfolio
Operational Excellence
Movement in year
Unchanged
Description and potential impact
– Risk of portfolio electricity production falling short of expectations
resulting in lower revenues
– The sensitivity of the Company’s NAV to deviations from energy
yield expectations is provided in the Valuation of the Portfolio
section, and climate change considerations are covered in the
TCFD section
Risk mitigation
– Diversification of the portfolio across a variety of geographies, i.e.
weather systems, and renewables technologies, including the
complementary seasonal bias of solar production
– Established nature of wind and solar technologies; typical levels
of availability in a given year are around 96% to 99%
– Experience of Operations Manager in monitoring portfolio
production and delivering asset availability
– Utilisation of the Operations Manager’s and third-party expertise
when assessing energy yield estimates during acquisition due
diligence, and monitoring and reappraising (when appropriate)
energy yields throughout ownership
– Improvements in technology providing future opportunities for
enhancement, life extensions and repowering
Key developments
– Overall, generation for the year was down against budget with
the single largest impact coming from unplanned, third-party
grid outages (i.e. outages of equipment owned by distribution or
transmission network operators, used to export electricity from
TRIG’s sites to the grid).
– The use of contingent business interruption insurance remains an
important mitigant to the potential impact of third-party outages
on TRIG’s investments and insurance claims are underway for the
applicable outages in 2024 with some interim payments having
already been received.
– Good progress with operational enhancement activities in the
year including:
– Installation of aerodynamic blade improvements at four UK
onshore wind sites to enhance generation completed in the
period with works underway at a further four sites across
France and the UK
– Software enhancements to improve blade efficiency at sites
in Northern Ireland, Germany and the UK
– Minimising lost production risk through shadow flicker
technology upgrades to reduce associated curtailment at
Blary Hill
Risk management framework
Risks identified in the Company’s
risk management framework
This section sets out the principal risks faced by the Group
categorised by their residual risk rating.
The following pages set out the principal risks with a ‘high’,
‘medium’ and ‘low’ residual risk categorisation. They relate to macro
factors driven by externalities where the common mitigant is the
diversification within TRIG’s portfolio.
58
TRIG Annual Report 2024
Principal risk
Electricity pricing
Risk and Risk Management continued
Residual risk rating
High
Link to strategy
Balanced Portfolio
Movement in year
Unchanged
Description and potential impact
– Wholesale electricity prices moving adversely reducing merchant
revenues, as a result of factors including: (i) electricity demand
increasing less than expected; (ii) the volume of renewables and
other generation with low marginal costs increasing more than
expected within the energy mix (in some instances leading to
negative pricing and curtailment of generation); and (iii) natural gas
prices and carbon pricing being lower than expected, reducing
costs for the typical marginal generator
– The sensitivity of the Company’s NAV to changes in power price
forecast assumptions is provided in the Valuation of the Portfolio
section on page 38.
Risk mitigation
– A significant portion of TRIG’s near-term portfolio-level revenue
benefits from government-backed subsidies (e.g. Renewable
Obligation Certificates, Feed-in-Tariffs and contracts for
difference), power price fixes or power price financial hedges
– Forward pricing mechanisms, including through offtake
agreements with utility or corporate counterparties and hedging
instruments with financial institutions, provide some protection
against short-term fluctuations
– TRIG’s diversification across power markets that can have
different drivers of power price and technologies that have
differing characteristics in relation to the power price that they
capture, in particular between generation and storage assets
located in the same market
– The weighted average power price forecast used to determine
the portfolio valuation is comprised of a blend of the forecasts
for each of the power markets in which TRIG is invested after
applying expected power purchase agreement (“PPA”) sales
discounts and reflecting cannibalisation
– In the longer term, power price risk arising from the climate-
change-related transition to net zero (expanded upon in the TCFD
section) may be mitigated through:
– Storage technologies that trade power price volatility and
are able to capture higher prevailing prices at times of higher
demand (and also serving to stabilise the grid network in
certain geographies)
– The increasing electrification of the transport and heating sector
and the commercial development of renewables-generated
‘green’ hydrogen (through either use as a fuel or as a storage
technology) could support long-term demand for power
– Greater value attribution to renewables because it is green
Key developments
– Power prices were subdued across 2024, reducing from the
peaks experienced in 2022 and 2023 to more typical levels. While
the Electricity Generator Levy remains in place in the UK, current
power price forwards and the forecasts used in the valuation of
the portfolio are below the threshold at which the levy applies and
similarly prices in TRIG’s other markets remain below the recent
intervention levels
– Long-term term power price expectations remain broadly in line
with those at 31 December 2023 in most of the markets in which
TRIG operates
– Significant steps have been taken to protect TRIG’s exposure
to power price volatility as part of its power price risk mitigation
strategy, including:
– Entry into a corporate PPA for two of TRIG’s French onshore
wind farms to supply power to a green hydrogen facility
– Ten-year contract with a European auto manufacturer for the
sale of GoO certificates associated with c.69MWh of annual
generation in Sweden
– Fixing prices for 828GWh of 2025 generation output across
Great Britain, Northern Ireland and Spain (i.e. on top of existing
fixes available under government subsidy contracts)
– Since year end, TRIG has also entered heads of term
discussions in respect of a 10-year corporate power purchase
agreement for 2% of the Group’s annual generation
– As at 31 December 2024, 80% of TRIG’s revenues per unit of
generation are fixed over the next 12 months and 70% over the
next ten years are fixed through subsidies, fixed-price PPAs or
other hedges
59
Strategic Report Governance Financials
TRIG Annual Report 2024
Principal risk
Political / regulatory
Residual risk rating
High
Link to strategy
Balanced Portfolio
Movement in year
Unchanged
Description and potential impact
– Government or regulatory support for renewables changes
adversely, including retrospective changes to contracted tariffs,
the extension of existing or introduction of new levies or price
caps or changes to established cost frameworks and potential
changes resulting from wider market reform (e.g. locational
pricing considerations as part of REMA proposals in the UK)
– Adverse change to perceived risk profile of renewables assets
flowing through to portfolio valuations. The sensitivity of the
Company’s NAV to changes in discount rates is provided in the
Valuation of the Portfolio section on page 38.
Risk mitigation
– UK and European economies where opportunities fall within TRIG’s
acquisition focus have
broadly demonstrated a robust approach to
‘grandfathering’ commitments to existing installed capacity
– Future subsidies generally track the fall in development costs
of maturing technologies, providing appropriate public
value for money
– With the reductions in costs of deploying renewables driving
renewable energy to grid parity, unsubsidised assets are being
developed, particularly in the Nordic (onshore wind) and Iberian
(solar PV) regions
– Emphasis on energy security as a key item on the public agenda,
in light of both dwindling North Sea fossil fuel production and
broader geopolitical concerns
– Strong public and political momentum in TRIG’s markets of focus
towards meeting long-term United Nations, European Union and
national decarbonisation efforts (e.g. the EU’s new Green Deal
and the 2023 Net Zero Growth Plan publication in the UK by the
Department for Energy Security and Net Zero)
– Should Scotland separate from the rest of the UK, an independent
Scotland’s energy policies may impact the renewables market.
The relationship between the Scottish devolved Government and
the UK’s Government at Westminster is monitored; however, the
risk has decreased in the period given the reduction in Scottish
National Party representation in the Westminster parliament
following the 2024 UK general election. The Company’s diverse
portfolio alongside the Scottish Government’s commitment to
achieving net zero by 2045 reduces this risk
Key developments
– Windfall taxes and levies on generators were introduced in 2022
on the back of particularly elevated power prices to help fund
financial support to ease the cost of electricity to end users,
though the majority have now expired. The inframarginal revenue
cap applying to electricity generators in France is no longer in
force (having expired on 31 December 2024). The Electricity
Generator Levy in the UK remains in place until 31 March 2028;
however, current forecast price curves are below the threshold at
which the levy applies.
– National elections were held in the year in both the UK and
France, with elections scheduled for early 2025 in Germany:
– In the UK, various energy policy announcements have been
made by the new Labour Government which are supportive
of the renewables industry including: revising policies related
to the build-out of onshore wind, increasing the budget for the
AR6 Contracts for Difference allocation round and establishing
a state-owned energy company to support more nascent
renewable technologies. There is also a recognition that greater
grid investment is required to support the transition, with latest
capital expenditure plans announced by transition network
operators incorporating substantial increases in spend. Reform
of electricity markets also remains on the UK political agenda,
including determining how wholesale electricity prices are set
and long-term revenue support frameworks.
– In France, given the lack of clear majority following the 2024 general
election and subsequent no-confidence vote in the appointed
government, there is greater uncertainty over policy direction,
though it is acknowledged that budget cuts are expected, with
impact to the renewables industry yet to be determined.
– In Germany, early elections were held on 23 February 2025
resulting in victory for the CDU / CSU (with formation of a
coalition government expected in the coming weeks), following
a no confidence vote in the previous Coalition Government
and dissolution of parliament in December. As with France, the
potential impact to the business and the energy sector is likely
to become clearer in the coming months.
– The Managers regularly monitor public policy developments and
manifestos of political parties in the markets TRIG invests in. This
includes engaging with ministers in the new Government in the UK.
– In 2024, the Financial Conduct Authority (“FCA”) and HM Treasury
announced forbearance in relation to listed, closed-ended
Investment Companies’ disclosure of costs under PRIIPS and MiFID.
TRIG’s cost reporting (including its Key Information Document and
European MiFID Template) has been updated and published in line
with guidance (reflecting zero costs) which allows a more accurate
comparison of costs between listed companies regardless of
corporate structure. New Consumer Composite Investments (CCI)
legislation confirmed that investment companies do not levy charges
of their investors and that the value of the Company for shareholders
is represented by its share price rather than NAV. The FCA is
consulting on the application of the CCI legislation.
60
TRIG Annual Report 2024
Principal risk
Counterparty credit
Risk and Risk Management continued
Residual risk rating
High
Link to strategy
Balanced Portfolio
Responsible Investment
Operational Excellence
Movement in year
Unchanged
Exposure to
PPA Providers
Exposure to
O&M Providers
Exposure
to OEM
Vestas 22%
Siemens 18%
Orsted 14%
RES 11%
Natural Power 7%
Orsted 15%
Modity Energy 11%
Trading
Scottish Power 10%
Vattenfall 7%
SSE 7%
Siemens 47%
Vestas 23%
GE 7%
GE 7%
Solar Century 5%
Nordex 4%
Equinor 3%
Other 9%
EWE 7%
Axpo 6%
Statkraft
Ignis Energía 5%
Other 27%
Description and potential impact
– The risk of a counterparty failing to meet its financial obligations
resulting in potential operational loss for the Company
– TRIG’s key counterparties include:
– Original equipment manufacturers (“OEMs”) – responsible
for building the original plant and provide guarantees and
warranties to cover defects
– Operations and Maintenance (“O&M”) providers – responsible
for maintenance of the plant, can be the OEM or (increasingly)
an alternative maintenance provider. In recent years, there has
been an increase in the number of alternative providers in an
expanding renewables equipment maintenance market
– PPA counterparties – utility or trading companies purchasing
power generated by TRIG’s projects
– In the event that a counterparty or guarantor enters insolvency,
there is a risk of disruption while counterparties are replaced and a
risk of distribution lock-up for the assets that are project-financed
Risk mitigation
– Diversification of counterparty exposure through several service
sub-contractors, component suppliers and PPA providers
– The Investment Manager has a dedicated credit monitoring
function. Its analysis is reported to the Board quarterly
– The Operations Manager prepares contingency plans when credit
quality deteriorates to prepare for an event of counterparty failure
– Credit quality of project counterparties is assessed and
benchmarking of construction and operational costs is
undertaken as part of the acquisition due diligence process
Key developments
– The charts below provide an analysis of exposure to
counterparties by portfolio value across the three main categories
identified above. While PPA and O&M counterparties are
reasonably well diversified, TRIG’s highest exposure relates to
Siemens and Vestas in their capacity as equipment manufacturers
– Turbine suppliers have been under financial pressure following
high inflation over 2022 and 2023 increasing costs as they sought
to fulfil largely fixed-price supply contracts. This has resulted in
renewed focus on improving profitability and strengthening balance
sheets. Whilst TRIG’s greatest exposures are to Siemens and
Vestas, the largest turbine suppliers in Europe, the Company does
use a wide range of suppliers to help mitigate concentration risk
– While trading performance improved in 2024, relative to 2023, for
TRIG’s key turbine suppliers as pricing of new turbines has been
reset and order books have been worked through, counterparty
risk remains elevated and will continue to be closely monitored
as signs of sustained improvement are sought into 2025. It is
acknowledged that the fundamentals behind the industry, policies
supporting wind energy globally, remain in place and we believe
that, although certain turbine suppliers may be facing difficulty,
the risk of systemic failure is not high.
Some projects have more than one counterparty in each of the above categories, in which cases the valuation of the project is apportioned between the counterparties.
OEMs generally also provide O&M services; however, not in all cases given the increase in the number of alternative providers offering O&M services as noted above.
Trina Solar 5%
Nordex 4%
Other 13%
61
Strategic Report Governance Financials
TRIG Annual Report 2024
Principal risk
Liquidity / treasury
management
Residual risk rating
Medium
Link to strategy
Responsible Investment
Movement in year
Unchanged
Description and potential impact
– Insufficient liquidity to meet dividends, operating expenses or
to fund commitments
– Includes risk of prolonged periods of share price trading below
latest NAV, inhibiting ability to issue new equity capital as a source
of funding
Risk mitigation
– The Investment Manager’s policies and controls in relation to
cash management
– Regular cash monitoring by the Board and Investment Manager
– Regular cash flow forecasting and stress testing prepared by
the Investment Manager and considered by the Board in setting
dividend targets and declaring dividends
– Revolving credit facility provides liquidity to finance acquisitions
between equity fundraising
– Selective disposals of assets, where accretive to existing
valuations, provide an additional source of funding and can
support in optimising portfolio construction
Key developments
– Net dividend cover for the year was 1.0x despite cable outages
at Hornsea 1 and East Anglia 1 (issues which have since
been remediated with both projects resuming generation and
distributions). Distributions improving to more typical levels
should, all else being equal, begin to improve full-year dividend
cash cover relative to 2024. Net dividend cover is stated after the
systematic amortisation of project-level debt, of which £206m
was repaid in the year. Before debt amortisation, gross cash
cover for 2024 was 2.1x.
– Reduction in RCF drawings of £134m to £230m partially utilising
proceeds from the successful divestment of four assets in the
period (including the partial disposal of Gode where proceeds
are expected to be received in early March 2025) at an average
premium of 10% to carrying value.
– Over the next 12 months, the Company expects to be able to
reduce RCF drawings to about £100m, which is within c.3% of
Portfolio Value, using proceeds from disposals, refinancings and
organic cash flows.
– The above also includes the impact of the recently announced,
enhanced share buyback programme (increasing from £50m to
£150m). The programme commenced in 2024 resulting in £21m
of capital being returned to investors in 2024 in addition to the
£184m of dividends paid.
– While it is recognised that share price discounts to NAVs for
renewables investment companies, including TRIG, have
widened over 2024; TRIG’s underlying operational cash flows,
continued disposal programme and disciplined capital allocation
strategy are expected to meet operational and capital funding
requirements, including investment in TRIG’s development
pipeline where returns meet a risk-adjusted hurdle rate set by
share buybacks. No new construction commitments were
entered into in 2024 - full details of commitments as at the
31 December 2024 are set out on page 42.
62
TRIG Annual Report 2024
Principal risk
Macroeconomic factors
Residual risk rating
Medium
Link to strategy
Balanced Portfolio
Responsible Investment
Movement in year
Unchanged
Risk and Risk Management continued
Description and potential impact
– The risk of an adverse change in macroeconomic environment
affecting TRIG
– Risk of adverse valuation and cash flow impacts if inflation
reduces below TRIG’s valuation assumptions
– Risk of increase to long-term government bond yields if market
expectations for timing and quantum of interest rate cuts from
central banks not met, potentially flowing through to discount
rates reducing valuations
– The sensitivity of the Company’s NAV to changes in
macroeconomic factors is provided in the Valuation of the
Portfolio section on page 38
Risk mitigation
– Foreign exchange: hedging policy established and adhered to
– Inflation: the income from the portfolio has a correlation with
inflation. Most of the subsidy regimes and some costs are linked
to inflation. It is expected that power prices have some positive
correlation with inflation in the longer term
– Interest rates: fixed-rate debt or interest rate swaps to reduce
interest rate exposure at project level; limited exposure at
Company level
Key developments
– Return expectations continue to be elevated given the prolonged
higher interest rate environment with cuts in the year from
central banks coming at a slower pace than originally expected.
Long-term government bond yields in the UK increased over the
year, particularly in the final quarter, and at 31 December 2024
exceeded those at 30 September 2023 when the portfolio’s
country-specific discount rates were last amended. As a
result, discount rates for the UK were increased by 0.3% at 31
December 2024, with no change to European discount rates
given the relevant government bond yields in those markets have
remained more stable.
– While core inflation across the markets in which TRIG operates
has moderated versus the high levels experienced in 2022 and
2023, services inflation has remained elevated for much of 2024
resulting in delays to interest rate cuts and less visibility over the
timing and scale of monetary policy loosening expected in 2025.
63
Strategic Report Governance Financials
TRIG Annual Report 2024
Principal risk
Taxation
Principal risk
Sub-contractor delivery
Residual risk rating
Medium
Link to strategy
Operational Excellence
Movement in year
Unchanged
Residual risk rating
Medium
Link to strategy
Balanced Portfolio
Responsible Investment
Movement in year
Unchanged
Description and potential impact
– The risk of a sub-contractor not meeting their obligations,
resulting in lost income or other operational losses (e.g., failure
to carry out works to time and budget, disruption to spare parts
supply or service)
Description and potential impact
– The risk of an adverse change in tax legislation or rates in the
markets in which TRIG invests. Corporation and local tax rates are
changed by governments and local authorities from time to time.
There is a risk that tax rates are increased to fund government
deficits or future spending requirements, to fund increased costs
arising to consumers from higher energy pricing or higher interest
cost of servicing national debt. Additionally, given the political
change still ongoing following election processes in TRIG’s
markets in 2024 (UK and France) and expected election processes
in 2025 (Germany), changes to tax rates could arise from changes
to governing parties or policies (regulatory risk arising from change
in government is covered within the Political / Regulatory risk
category above).
– The sensitivity of the Company’s NAV to changes in taxation rates
is provided in the Valuation of the Portfolio section on page 38
Risk mitigation
– Representatives of the Operations Manager sit on the boards
of the project companies. Through this role, and reporting
information provided, the Operations Manager reviews projects
and their sub-contractors’ performance
– Where RES is a sub-contractor to a project or in other specific
circumstances, representatives of the Investment Manager will sit
on the board of the project company
– The Operations Manager maintains a regular dialogue with
major sub-contractors to ensure that challenges and issues are
resolved proactively
– In extremis, sub-contractors can be terminated for poor
performance. Replacement sub-contractors are generally
readily available
Risk mitigation
– Some mitigation is achieved as a result of the diversification
across geographies and therefore different government policies
– Relevant tax rules are closely monitored, utilising third-party
advisers where necessary
Key developments
– No material changes in risk level in the year – Access to spare parts continuing to be carefully monitored, in
particular in the UK and Ireland, with direct engagement with
manufacturers being undertaken where appropriate to minimise
risk of delays and downtime
Key developments
– No material changes in tax legislation in the year
64
TRIG Annual Report 2024
Risk and Risk Management continued
Principal risk
Construction and
development
Residual risk rating
Medium
Link to strategy
Responsible Investment
Operational Excellence
Movement in year
Unchanged
Description and potential impact
– The risk that construction or development projects fail to progress
as planned including additional / unforeseen costs or delays to
start-up and commencement of revenues
Risk mitigation
For acquisitions of assets at late-stage development stage:
– Through the acquisition process, the Investment Manager, with
input from the Operations Manager, undertakes risk allocation
and counterparty due diligence when determining the appropriate
valuation for, and whether to proceed with, the opportunity, utilising
input from third-party legal and technical advisers where necessary
– Partners / suppliers selected with which TRIG has strong
relationships, long-term business alignment and a shared
commitment to quality. A strong track record and commitment to
health and safety and sustainability is critical
– The Operations Manager sits on the boards of the project
companies. Through this role, and with reporting information
provided, the Operations Manager reviews construction progress
and is able to intervene where necessary
– The Operations Manager provides quarterly updates to the Board
on progress for each project in construction, including potential
risks to timelines and mitigating actions being taken
– Experience of the Managers and lessons learned / best practice
shared on construction stage projects with TRIG having now
delivered 15 projects from construction to operations since IPO
For acquisition of development platforms, assets at development
stage for which TRIG (or its subsidiaries) intends to complete
development, engineering and construction activities:
– An increased hurdle rate to reflect the higher allocation of risk
toward TRIG
– Use of experienced personnel including project managers,
technical advisers, legal advisers
– Sourcing an experienced platform (e.g. in the case of Fig Power)
with a track record of development success and employees
incentivised on project value delivery
– Allocation of risk through contracts where possible ensuring risk
and return remain appropriately balanced
– Robust governance of platforms to ensure alignment with
TRIG’s strategy
Key developments
– Two Swedish onshore wind farms (Ranasjö and Salsjö)
commissioned during the year
– Construction commenced on the 78 MW Ryton battery project
in Q2 2024 (the first of TRIG’s previously announced 1GW
development pipeline) with grid energisation expected in 2025
– Development activities continue to progress well on the remainder
of TRIG’s 1GW development pipeline
65
Strategic Report Governance Financials
TRIG Annual Report 2024
Principal risk
Physical single points
of failure
Residual risk rating
Medium
Link to strategy
Balanced Portfolio
Responsible Investment
Operational Excellence
Movement in year
Unchanged
Description and potential impact
– The risk that a single point of failure outside of TRIG’s control
(e.g. grid connections) affects any one project
Risk mitigation
– Exposure to single points of failure is reduced through portfolio
diversification and TRIG’s balanced portfolio manages single
asset concentration
– Acquisition due diligence considers the contractual provisions
and protections for individual projects, factoring the conclusions
into investment valuations and decisions
– Actively monitored by the Operations Manager through
project company risk matrices and analysis of shared exposure
between projects
Key developments
– Cable failures impacted export of electricity for the Hornsea 1
and East Anglia 1 projects in the period. The issues were
remediated and insurance claims are underway to mitigate
lost generation revenues
– Uncompensated curtailment for grid works / outages also
reduced generation in Sweden (Jadraas) and Germany (Merkur)
– Despite recent frequency of grid related events, medium to long
term residual risk is considered to remain unchanged
66
TRIG Annual Report 2024
Risk and Risk Management continued
Principal risk
Supply chain
Principal risk
Balancing risk
Residual risk rating
Medium
Link to strategy
Operational Excellence
Movement in year
Unchanged
Residual risk rating
Medium
Link to strategy
Responsible Investment
Operational Excellence
Movement in year
Unchanged
Description and potential impact
– The risk of unethical and non-compliant practices within the
supply chain of the Company outside of the Manager’s control
Description and potential impact
– The risk that balancing costs within PPAs increase due to
generation volatility
– Power price financial hedges may lead to losses due to the basis
difference between the variable pricing achieved by an asset
when compared to the contractual variable price due under a
swap to the swap counterparty
– Projects may also participate in downward flexibility mechanisms
associated with the balancing market – where they are paid to
shut off during periods of high electricity supply or low demand.
Being a relatively nascent market, there is a risk that guidance in
relation to participation changes over time, impacting revenues
generated
Risk mitigation
– There is the risk of operations and practices that are not
sustainable or non-compliant (actual or alleged) in the supply
chain that may be outside the direct control of the Managers,
such as working conditions, greenhouse gas emissions, and
other ESG factors – to mitigate this, acquisition due diligence
is a key control with counterparties identified as high risk being
subjected to enhanced procedures
– The Operations Manager engages with and monitors
counterparties throughout the asset life with a rigorous selection
process for new counterparties / suppliers
Risk mitigation
– Hedging across a group of assets to reduce the risk of
underperformance of any one asset
– Increasing the length of the settlement period so short-term
downtime or poor weather resource has less of an impact on
overall generation
– Limiting the volume of electricity production hedged, typically less
than P90 levels
– Plants that participate in downward flexibility bid consistent with
the revenues forgone and risks exposure with shutting a wind
farm off and starting up again
Key developments
– In addition to continued monitoring of existing suppliers, in the
period various suppliers were contracted as part of development
activities on Ryton with due diligence procedures carried out as
outlined above
– TRIG has also committed to sustainability targets in the period
that include the objective for 75% of its suppliers (by emissions) to
have net zero targets in place by 2028
Key developments
– No significant changes in the period
67
Strategic Report Governance Financials
TRIG Annual Report 2024
Principal risk
Health and safety
Residual risk rating
Low
Link to strategy
Operational Excellence
Movement in year
Unchanged
Principal risk
Stakeholders: communities
Residual risk rating
Low
Link to strategy
Responsible Investment
Movement in year
Unchanged
Description and potential impact
– Risk of incidents resulting in injury, in particular, at assets
under construction or during upgrades, rectification works
or decommissioning on existing sites, as well as through
day-to-day operations
– Reputational risk in the event procedures are determined
to be insufficient
Description and potential impact
– Risk that the communities where TRIG’s assets are located do
not see the project as a responsible neighbour which disrupts
asset operations and reduces the likelihood of successful asset
life extensions or repowering
– Decommissioning and site restoration obligations are not carried
out in accordance with best practice impacting communities in
which the assets are located
Risk mitigation
– Experienced Operations Manager ensuring best practice
and monitoring and reporting to the Board on all RIDDOR
(or equivalent) injuries and incidents. Reducing the LTAFR
(Long Term Accident Frequency Rate) metric is also
incorporated within TRIG’s RCF Sustainability KPI targets
– Industry-experienced sub-contractors employed, with
sub-contracted responsibilities relating to Health, Safety,
Quality, Environment (HSQE) clearly set out
Risk mitigation
– Active programme of community engagement across the
portfolio, including monetary contributions to local communities
exceeding £1m per annum, reported on quarterly to the Board.
Target for establishing community funds also embedded into
RCF Sustainability KPIs
– Costs associated with fulfilling obligations are included in
acquisition assumptions and monitored in project models
Key developments
– LTAFR for the year of 0.23 compared with 0.09 for 2023 and
0.62 for 2022 showing a sustained low accident rate following
the period of peak construction activity in 2022
Key developments
– Five new community funds set up in the year and one fund
(related to the Cuxac wind farm in France) retired following
takeover of the community facilities by a private enterprise, taking
the total across the portfolio to 46. £1.8m was distributed across
all community funds in the period
68
TRIG Annual Report 2024
Introduction
TRIG is a closed-ended investment company, and therefore under
Listing Rule 15.4.29R is not required to comply with Listing Rule
9.8.6R(8). The Company has, however, been voluntarily reporting
using the four pillars of the Task Force on Climate-Related Financial
Disclosures (TCFD) since its 2019 Annual Report & Financial
Statements, and has added to these disclosures in subsequent
reporting periods. TCFD is the established framework for consistent,
comparable and clear reporting on a company’s approach to
climate-related risks and opportunities and assessing its potential
impact on that company.
TRIG’s climate-related financial disclosures, set out below, cover
the 12-month period to 31 December 2024 (the “Reporting Period”)
and satisfy the obligation of InfraRed Capital Partners Limited, as the
Company’s Investment Manager, to prepare a product report for the
Company in accordance with section ESG 2.3.5 of the FCA Handbook.
Governance
Climate change considerations are embedded throughout TRIG’s
business. The Board has overall responsibility for the oversight of
TRIG’s sustainability risks and opportunities, of which climate change
is an important subset. This approach is detailed further in TRIG’s
Sustainability Policy, available on the Company’s website, which
applies to both the acquisition process and the ongoing management
of TRIG’s portfolio.
Day-to-day management of TRIG’s portfolio is delegated to the
Investment Manager, InfraRed, and the Operations Manager, RES.
Both Managers disclose their sustainability-related activities, including
related to climate change, through reporting available on their
respective websites.
The Board and Managers discuss risks related to climate change
at least annually and the Board has ultimate oversight of the
Company’s risk management framework. Consideration of the
transition risks and physical impacts of climate change features
in the Board’s discussions.
The assessment and management of climate-related matters
includes activities such as:
Board level:
– Consideration of climate-related risks within the Company’s risk
register at each quarterly Board meeting, feeding into the risk
management framework presented in each Annual Report;
– A dedicated ESG Committee made up of the Company’s Directors,
which meets quarterly to oversee progress towards TRIG’s
sustainability objectives and its associated targets, this includes
the Company’s sustainability goal of ‘mitigating adverse climate
change’. The Committee also considers upcoming developments
in market practice on sustainability-related matters;
– Updates from the Managers, with the TRIG Board also undertaking
their own training on sustainability matters. This further facilitates
understanding of climate-related risks and opportunities faced by
the Company, building on the Directors’ extensive experience in the
renewables sector;
– Board assessment of actions taken in response to climate change
impact assessment findings. This includes consideration of climate-
related disclosures by the Board’s Audit Committee and an annual
review of the Managers’ performance, including their adherence to
the Company’s Sustainability Policy by the Board’s Management
Engagement Committee; and
– Consideration of climate change opportunities during the
Company’s annual strategy reviews.
Portfolio level:
– Monitoring of climate-related government policy by the Managers
and engaging with policy makers where appropriate;
– TRIG’s Advisory Committee, comprised of representatives from
both Managers, considers TRIG’s strategy and risks on a quarterly
basis, the output of which is reported to and discussed with the
Board; and
– Interpreting the portfolio company level climate risk assessment
findings and assessing the suitability of adaptation measures
(where possible) in place for identified physical climate risks.
This analysis informs TRIG’s strategy and the assessment of the
Company’s risks and effectiveness of risk mitigation measures at
the portfolio company level.
Portfolio company level:
– RES, and in some cases InfraRed, are represented on the board of
each portfolio company. Through this role, they ensure that climate-
related risks are considered by portfolio company management
teams and reflected in portfolio company risk registers. Relevant
matters are communicated to the ESG Committee ofthe Board.
Task Force on Climate-related Financial Disclosures
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TRIG’s reporting structure
The diagram below sets out TRIG’s reporting structure and how information is fed back to the Board from each portfolio company.
Investment Committee
Advisory Committee
Operations Management
Investment Project Governance
Portfolio Management Operational Oversight
Value Preservation & Enhancement Value Preservation & Enhancement
Sustainability ESG & HSQE
Fund Management
Independent Board of Directors and its Committees
Feedback & Reporting
Strategy and Action Plans
Market Intelligence
Third-Party Advisers
The Managers
Portfolio Companies
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TRIG Annual Report 2024
Three key factors that will be impacted by the
transition and physical risks of climate change have
been identified by the Board and the Managers:
Power price forecasts
Which are impacted by renewables build-out assumptions and
the extent to which renewable electricity can be utilised when it
is generated. This risk is most likely to manifest in a 2°C or lower
scenario, where transition risks are greatest. The Investment
Manager’s analysis, having taken input from leading third-party
power price forecasters, is set out on page 40.
Energy yield
Which could be impacted by changes to weather patterns. The
Managers have assessed the current and future climate-related
physical risks on a site-by-site basis using the ‘business as usual’
emissions scenario to identify whether changing weather patterns
will impact on generation capacity.
Asset availability
Maintenance costs, replacement costs and insurance premiums
will be impacted by changes in weather patterns that result in
more severe events such as lightning strikes, hail and windstorms,
floods and wildfires. Increase in frequency or severity of
damage to the underlying assets may also lead to an increase
in insurance premiums. This risk is most likely to manifest in a
higher temperature scenario, where physical risks are higher. The
Investment Manager’s analysis, having taken input from leading
third-party power price forecasters, is set out on page 40.
Further detail on these findings and the method of assessment is set
out on page 72. The climate-related risks faced by TRIG in different
climate scenarios are determined to have a limited adverse impact on
the Company’s business strategy. Materiality was determined utilising
a third-party provider’s rating system, primarily based on the asset’s
physical exposure to climate hazards and the potential impact such
exposures would have on both the asset’s operations, and where
possible, valuation.
Summary of key climate-related risks
and opportunities
The table below sets out key climate-related risks and opportunities
as they apply to TRIG. The risks identified overlap with the Company’s
‘high’ residual impact principal risks: government / regulations,
electricity pricing, energy yield and counterparty credit, as set out in
the Risk and Risk Management section.
TCFD continued
Strategy
TRIG’s business model is specifically designed to take advantage of
the investment opportunities arising from the decarbonisation of the
energy system over the short, medium and long term. These time
horizons are defined as follows:
S
Short term: five years from the date of this report
aligning with the Company’s viability statement
M
Medium term: 15 years from the date of this report,
aligning to the typical length of government-backed
revenue support mechanisms
L
Long term: 30 years from the date of this report,
aligning with the typical life of a renewables
infrastructure asset
The pace of the transition to a net zero carbon future will, inter alia,
dictate the size of the investment opportunity for TRIG. Under current
plans for renewables deployment and transition across the European
countries in which TRIG invests, the Managers expect there to be
significant investment opportunities for the Company over the long
term which supports the resilience of TRIG’s strategy.
In line with the TCFD classification, climate-related
risks and opportunities can broadly be split into
two categories:
Transition risks:
Risks related to the transition to a lower-carbon economy.
These risks are related to four risk drivers: policy and legal risk;
technological risk; market risk; and reputational risk.
Physical risks:
Risks associated with physical impacts from climate change that
could affect energy assets and operating companies. These impacts
may include ‘acute’ physical damage from variations in weather
patterns (such as severe storms, floods, wildfires and drought) and
‘chronic’ impacts (such as sea-level rise and desertification).
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Climate-related trend Potential impact Category Time horizon Mitigation and resilience
Changes in
power prices
Increasing penetration of intermittent
renewable electricity generators in the
energy system risks increasing the
volatility in the prevailing and forecast
power price.
Financial
planning
L
M
S
Near term, exposure is reduced
through managing the proportion of
revenues with fixed power prices,
achieved through the acquisition of
investments with subsidised revenues,
fixing under offtake agreements and the
use of hedging instruments.
Medium term, the build-out of long-
term storage infrastructure, electric
vehicle (EV) charging and grid upgrades
will help provide flexibility to the energy
system, countering the intermittency of
renewables generation.
Climate change is considered in
the valuation of the Company’s
investments. For example,
cannibalisation is applied to power
price assumptions, accounting for the
effect that renewables can have on
overall power prices.
Increasing renewables build-out without
sufficient demand-side action could
reduce power price forecasts.
Investments
L
Extreme
weather events
Increased risk to portfolio investments of
physical damage to on-site infrastructure
and off-site transmission and distribution
systems, alongside additional safety
risks and operational considerations.
Investments
L
M
S
Portfolio diversification across
geographies and technologies, which
reduces the overall impact of action
taken by an individual government,
of any local extreme weather event or
any single asset failure. As an additional
mitigation measure, insurance against
such risks is obtained as standard
across the portfolio.
Changes
to weather
patterns
Material increase or decrease in an
asset’s energy yield from that expected
at the time of investment.
Investments
L
M
Maturing of the
renewables sector
As portfolios mature and subsidy
periods come to an end, the power
price exposure of renewable investment
portfolios will naturally increase.
Strategy
L
Mitigated in part through the
use of offtake arrangements
or hedging instruments.
Project
economics
Economics pushing projects to a greater
scale may result in fewer opportunities
by number. An increased volume of
capital looking to deploy in renewables
may mean projects become highly
sought after.
Strategy
L
M
Investment discipline is key.
‘Off-market’ transactions sourced by
the Investment Manager, InfraRed,
remain an important route to attractive
opportunities.
Increased
government
support for the
transition to
net zero
Follow-on investments in the existing
portfolio such as the co-location
of generation and storage, and the
repowering or expansion of existing sites.
Investments
M
S
Consideration of a broader range of
investment opportunities and regions
within the Company’s investment remit.
Near term, the greatest investment
activity in TRIG’s key markets is
expected to be from development
projects, such as the development
of battery storage in the UK, and the
repowering of onshore wind assets
across Europe.
Growth of markets where TRIG has an
investment focus, broadening of TRIG’s
diversification to further geographies.
Strategy
L
M
Maturity of
newer storage
technologies
Investment opportunities in such projects.
This may include the production and
storage of ‘green’ hydrogen and its
subsequent use within hard-to-abate
sectors and industries.
Strategy
L
M
Increased
demand for
sustainable
investments
Further growth of the Company, meaning
greater diversification through further
acquisitions and accretion through
raising capital at a share price in excess
of the Company’s Net Asset Value.
Financial
planning
L
M
S
Linkage of TRIG’s revolving credit
facility to sustainability KPIs, and
hedging arrangements.
RisksOpportunities
Time
horizon key
Short term
(0–5 years)
S
Medium term
(5–15 years)
M
Long term
(15–30 years)
L
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TRIG Annual Report 2024
Physical risk assessment
The Company periodically appoints a third-party consultant to
provide a detailed view as to the risk of physical damage to TRIG’s
portfolio due to climate change on a site-by-site basis, by modelling
and identifying physical climate-related risks across the Company’s
portfolio using the latest climate scenarios. The last such review was
undertaken in 2023.
Methodology
Each asset has been analysed according to its specific location
and key technology characteristics, with physical risks assessed
using three different Intergovernmental Panel on Climate Change
(IPCC) aligned emissions scenarios:
Business as usual (SSP-8.5 / RCP-8.5)
Rising emissions continue to rise over the 21st century, with global
average temperatures exceeding 3°C by 2100
Emissions peak in 2040 (SSP2-4.5 / RCP-4.5)
Emissions do not increase beyond 2040, with global average
temperatures expected to be between 2° and 3°C higher by 2100
Paris aligned (SSP1-2.6 / RCP-2.6)
Policy action limits emissions enough to keep warming close to
1.5°C and below 2°C, in line with the Paris Agreement
These scenarios allow physical climate attributes to be modelled,
such as temperature and sea-level rise, in addition to flooding
and extreme weather. Five-year increments are given against
each scenario to help assess risk within any given asset’s lifetime.
This means TRIG can quantify the probability of such attributes
occurring and calculate the value at risk (VaR) for the portfolio, before
considering mitigations.
TCFD continued
Findings
Findings presented are on the basis of a ‘business as usual’
scenario given the similarity of estimates and results across all
three scenarios. The detail below is a summary of how physical
risks progress up to 2050:
Solar PV
Most of TRIG’s solar exposure by value is in Spain. Looking solely
at location, however, the majority of assets are located in the UK
and France. Wildfire risk is material for seven assets located in
Spain and France. Exposure to drought and heat stress is highest
for assets in Spain, with precipitation risk affecting those located in
Réunion. Solar projects with co-located storage, located in France
and Réunion, are at greatest risk to precipitation. Drought and
heat stress remain at low to moderate exposure.
We have assumed that the valuation of assets materially exposed
to wildfire risk is eroded entirely in the high physical risk scenario.
Whilst wildfire risk is fully covered by insurance, there are further
adaptation measures that would have to be implemented.
Financial value at risk for precipitation exposure is considered
immaterial, given: 1) this would be captured by riverine flooding to
which we have immaterial exposure; and 2) this would not affect
the valuable components of the assets. Risk of drought is also not
material given its limited impact on the asset outputs. The impact
of marginal increases in temperature on the efficiency of panels
has been modelled, with immaterial findings on value at risk.
Battery storage
As at 31 December 2024, all battery assets are located in the UK.
The greatest physical climate risk exposure is to heat stress, with
an average moderate exposure by 2050. All other hazards are
expected to remain very low or low to 2050. The impact of heat
stress on the efficiency of batteries has been modelled at an asset
level, with immaterial findings on value at risk.
Onshore wind
Based on current data, all risks are expected to remain low to
2050, other than wildfire risk and heat stress. Wildfire exposure
is material for four assets for which we have assumed full erosion
of value in the high physical risk scenario. Heat stress, which
increases wear and tear of turbines is expected to become a high
climate-related risk by 2050.
Offshore wind
Many hazards are not applicable, such as drought and wildfire. The
six assets, located in North Sea near the UK and Germany, are at
greatest risk to extreme wind exposure. In cases of excessive wind,
turbines are shut down, thereby mitigating risk of damage.
For all risks identified, except for wildfire, there are limited initiatives
available to offset these risks operationally which represent an
efficient cost-benefit dynamic. Therefore, we have determined
that insurance currently in place, which covers all of these risks,
represents the most practicable protection as we have both revenue
protection as well as finance available to repair the asset such that
TRIG can continue to significantly contribute to climate change
mitigation. We will continue to work with each project to identify
and implement physical adaptation measures where possible.
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Climate scenario analysis
The Managers have internally assessed the Company’s portfolio to
determine the potential impacts of both a high transition risk scenario
and a high physical risk scenario.
Views across power price forecasters vary by forecast and by region,
but in general most views do not currently assume that climate
change is limited to 1.5-2ºC degrees nor correspond with a 4°C
temperature change scenario (as referenced in the high physical risk
scenario). The degree of temperature change depends upon the
decarbonisation of the power sector and the decarbonisation of the
wider economy, which would typically include significant increases in
electricity demand from electrifying other carbon emitting sectors.
Therefore, to assess the potential impact from climate change on
power prices, net zero versions of power price forecasts were used
to estimate the impact of a high transition risk scenario on TRIG’s
portfolio. Similarly for the higher physical risk scenario, the current
energy mix is assumed to stay static as this is estimated to equate
to a 4ºC degree temperature change – all else being equal. It is
important to note that these forecasts are incredibly complex, with a
very large number of inputs that could be adjusted differently to arrive
at either a high transition risk scenario or a high physical risk scenario.
These scenarios could be arrived at through a number of different
paths and, in recognition of this some, forecasters provide multiple
net zero scenarios which follow different pathways and consequently
result in diverging price forecasts.
For example, the same forecaster may have:
– A pathway assuming subsidies are used to drive renewable
build-out to fully decarbonise the electricity sector and
the wider economy
– A pathway using higher levels of carbon taxation to progressively
decarbonise all sectors, leading to higher levels of electrification of
other sectors and progressive decarbonisation of the power sector
as carbon-producing generators are priced out
The former would be expected to reduce price forecasts and have
a negative impact on the Portfolio Value, while the latter would be
expected to increase price forecasts and consequently Portfolio Value.
Estimates are provided below as to the potential financial impact
of two climate change scenarios. When analysing these scenarios,
we consider the full life of the assets. Neither of the two scenarios
are considered as representing an indication of current fair value
for the portfolio, as the assumptions applied are for more extreme
climate scenarios. Nor do these scenarios reflect reasonably possible
changes to the fair value in the next 12 months, and so are not
included in the sensitivities included within Note 4 of the TRIG Limited
financial statements.
Egmere Airfield
Sector: Solar PV
Location: UK
Net capacity: 21 MW
Holding: 100%
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TRIG Annual Report 2024
TCFD continued
High transition risk scenario (typically associated
with a 1.5-2°C temperature change)
Under this scenario, we assume that policy measures are put in place
that accelerate the decarbonisation of energy production and the
wider economy, including higher than expected levels of renewables
deployment, and each country where TRIG invests achieving net zero
carbon by 2050. Physical risks from extreme weather events are less
frequent and effective insurance coverage remains generally available;
and so no additional physical damage costs are assumed in this
lower temperature scenario case. In a high transition risk scenario,
the following are likely to be observed that can be expected to affect
power price revenues:
Observation Impact on price forecasts in isolation
Increased levels of renewable
deployment
Downward pressure
Increased electricity demand
from electrification
Upward pressure
Decreased gas prices Downward pressure
Increased carbon prices Upward pressure
Although these scenarios are very difficult to quantify, in-house financial
modelling undertaken using net zero scenarios provided by power
price forecasters (based upon the modelling of multiple pathways
as described above) being an approximate impact of +2% / - 6% to
the Portfolio Value on a committed basis, or an approximate impact
of +3p / -8p per share. This impact could be reduced as a result of
industry efficiencies, such as lower operating costs arising from greater
competition between sub-contractors as the sector continues to scale
up, or increased generation efficiencies and performance.
One of the challenges to achieving more renewables build-out
than assumed in current power price forecasts, and therefore
decarbonisation, is that as long-term power prices fall, a feedback
loop of making fewer new projects financially viable is created, which
in turn reduces the roll-out rate and therefore reduces the downward
pressure on forecast power prices.
Governments across TRIG’s target markets are beginning to set out
detailed policies in relation to both supply and demand for renewable
electricity, which may address this feedback loop, provide support to
the power price and achieve the levels of renewables roll-out required
for net zero carbon by 2050.
High physical risk scenario (typically associated with
a 3–4°C temperature change)
This is a climate change scenario occurring across the lives of the
assets currently in the portfolio that results in a temperature change
of greater than 3°C, leading to extreme weather events that could
threaten the continuous operation of assets within the portfolio.
Under this scenario, it is assumed that renewables build-out lags
expectations, the energy system is not decarbonised to an extent
consistent with a lower impact from climate change, and that
insurance for damages may become unavailable or cost prohibitive.
It is expected that these events could occur over a five- to 15-year
time period.
Whilst current power price forecasts are not prepared on the basis
of an overall temperature change, the underlying assumptions,
particularly relating to renewables build-out, are consistent with
a 3°C scenario.
The Managers have undertaken in-house analysis using information
from site questionnaires in combination with climate projections as
per the IPCC’s Sixth Assessment Report to estimate the potential
physical impact of climate change on TRIG’s portfolio in this scenario.
Chronic changes refer to long-term and structural physical risks.
Acute changes refer to the increased risk of specific, extreme short-
term events. How events are categorised under these two headings
is set out in the subsequent table. The review suggests a possible
adverse impact of physical risks in a high temperature change
scenario of c.2p to 3p per share. The estimated financial impact does
not consider the offsetting impact of any insurance claims that may
be possible.
Changes to climate can be expected to impact wind speeds across
the portfolio of TRIG’s assets and could also affect solar irradiance.
The Investment Manager has run a scenario assuming that wind
speeds and irradiance reduced over a 20-year time horizon such
that at the end of the period the assumed portfolio level generation is
consistent with a P90 downside generation scenario. This could be
expected to reduce NAV per share by c.6p.
In a higher temperature scenario, it is likely that the renewables roll-
out assumptions incorporated in current power price forecasts would
not be met. Therefore, the Investment Manager considers that the
medium- to longer-term reductions seen in power price forecasts may
not occur which would tend to benefit NAV and partially or fully offset
the adverse impacts on NAV set out above caused by increased
physical damage and reduced energy yields. We have not attempted
to estimate the impact of a higher temperature case on projected
power prices as these scenarios are not provided by power price
forecasters. The estimated financial impacts are based on current
views, which are likely to evolve as industry methods mature.
A key mitigant to the portfolio as a whole suffering from a material
event at any one asset is the portfolio’s asset diversification, including
the geographic spread across five European countries, which helps
to reduce the impact of localised weather events.
Sustainability considerations, including those relating to climate
change, are integrated throughout InfraRed’s investment process, for
example, a climate change risk assessment must be completed for all
new investments. Scenario and sensitivity analysis is also undertaken
by the Managers as part of due diligence, and examined by the
Investment Committee when considering investment approval.
Thus, the sum of the potential physical risks and reduced generation
impacts from a higher temperature scenario could result in a
reduction in Portfolio Value on a committed basis by approximately
7% or approximately 8 to 9 p per share which can be expected to be
partially offset by increased revenues if this scenario caused a higher
power price environment.
Risk management
Climate-related risks are identified and assessed by the Managers
when making new investments (throughout the investment screening
and due diligence processes) and in the running of the current
portfolio (asset management activities, monitoring and reporting).
Climate-related risks identified through the acquisition process are
managed through the acquisition business plan and investment
pricing. The appropriateness of mitigating action is considered by the
Investment Committee as part of the investment process.
The Managers monitor the management of identified climate-related
risks for all projects, while also requiring climate-related risks to be
maintained as part of each risk register. The Managers seek to work
closely with management teams of portfolio companies with more
material exposure, by supporting efforts to establish adaptation
measures in response to risks identified in the assessment.
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Metric Methodology Unit 31 December 2023 31 December 2024 Comment
Renewable energy
generation
1
Based on portfolio performance during
2024. Calculated based on each project’s
generation capacity, pro-rated for TRIG’s
share of subordinated debt and equity
capital.
GWh 5,986 5,915 Reduction in
generation reflects
disposals made
and grid outages
during the year
Tonnes of carbon
emissions avoided
Based on actual portfolio performance
during 2024, using the IFI Approach to
GHG Accounting.
tonnes 2.1m 2.0m This figure
is calculated
using portfolio
generation figures
which reduced as
per the reasoning
above
Number of homes
(equivalent) the
portfolio is capable
of powering
Based on budgeted generation of the
committed portfolio as at 31 December
2024, using the IFI Approach to GHG
Accounting.
homes
(equivalent)
1.9m 1.7m Reduction reflects
disposals made
during the year
Proportion of
portfolio sourcing
electricity under
renewable energy
tariffs
This measures the percentage of assets
which source electricity used on-site from
renewable energy sources.
% 84% 94% Target in place for
100% of portfolio
to be sourcing
electricity under
Renewable
Energy Supply
Contracts by
2035
Representatives of RES, and in some cases InfraRed, sit on the board of each portfolio company. Through this role, they endeavour to
ensure that climate-related risks are considered by portfolio company management teams, reflected in portfolio company risk registers
and appropriate mitigation plans in place. Management activities are discussed by the Advisory Committee through their quarterly review
of portfolio performance.
Climate-related risks are integrated into TRIG’s risk management framework through the investment process and are reported quarterly to the
Board. The Board considers the completeness of the risks recognised and the sufficiency of controls and mitigation, identifying where it is felt
further action is required. For further information on the Company’s approach to risk management, refer to the Risk and Risk Management section.
Metrics and targets
The Company considers the TCFD’s seven cross-industry
metrics and specifically reports on GHG emissions related to its
activities. Outside of this, as an organisation which invests solely in
infrastructure that contributes towards a net zero carbon future, TRIG
utilises a range of metrics which monitor the portfolio’s contribution
to mitigating adverse climate change, including the following, with the
latest figures also reported on page 153.
These metrics focus on the Company’s contribution to mitigating
adverse climate change. Further metrics, including those relating to
our other sustainability priorities of Environment, Communities and
Governance, can be found in the Sustainability section of this report.
The Board and Managers also consider several metrics that manage
the Company’s climate-related risks and opportunities including, but
not limited to:
– Renewables build-out assumptions in TRIG’s investment and
target acquisition markets, which impact long-term power price
forecast assumptions
– Percentage of revenues with fixed power prices, which impacts
the extent to which fluctuations in power price forecasts affect the
portfolio valuation and forecast cash flows
– Energy yield, where deviations from expectations are examined
for climate-related risk factors, including those arising from
asset availability
– The Company’s annual budgeting and semi-annual valuation
process includes forecasts which may be influenced by the energy
transition and physical impacts of climate change. These include
expectations in respect of variables, in particular:
– Percentage of revenues with fixed power prices, which impacts
the extent to which fluctuations in power price forecasts affect
the portfolio valuation and forecast cash flows
– Energy yield, where deviations from expectations are examined
for climate-related risk factors, including those arising from
asset availability
Deviations of these variables from budgets and changes to the
variables in forecasts may serve as leading indicators of changes
to climate-related opportunities, risks and performance. For more
information on the Company’s valuation process, refer to the
Valuation of the Portfolio section on page 38.
1 Includes compensated production due to grid curtailments, insurance and other availability warranties.
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TRIG Annual Report 2024
TCFD continued
ESG targets within TRIG’s revolving credit facility
TRIG’s ESG-linked revolving credit facility (“RCF”) was refinanced in
February 2025 with amended, ambitious sustainability targets set
for the Company to reflect better the current operating environment
and medium-term goals of the business. The ESG Key Performance
Indicators (“KPIs”) that TRIG’s performance is judged on annually are
now as follows:
– Environmental: Capacity (MW) of development projects reaching Final
Investment Decision (FID) in each year (i.e. a financial commitment
to take a development project into construction). This reflects the
Company’s ambition to build-out its development pipeline, noting
any such investment decision will be contingent on returns being
assessed against the hurdle rate set by share buybacks
– Social: Increasing the number of voluntary community funds
supported by TRIG
– Governance: Two tests, both of which are required to be met:
– (i) maintaining a low Lost Time Accident Frequency Rate
(“LTAFR”); and
– (ii) conducting internal health and safety assurance procedures
across the portfolio (incremental to the extensive work already
carried out by the Operations Manager)
Performance against these targets is measured each year (the first
year of measurement for the revised targets above being the 2025
financial year), with the cost of the RCF being amended in the following
year. Meeting all sustainability targets referenced above is expected to
result in annual savings on TRIG’s RCF of c. £150,000 to £250,000.
Note for the 2024 reporting year under the previous ESG KPIs, the
Company expects to have met 2 of the 3 targets meaning that for
2025 there would be no margin (or commitment fee) adjustment on
the RCF. The target that was not met related to ‘homes capable of
being powered by clean energy’, which was impacted by disposals
made in the year. Given the continuation of the disposal programme
in 2025, this target has been replaced (as noted above) with a
development-focused target which is more representative of where
new investment in TRIG’s portfolio is expected to be over the tenor of
the renewed RCF agreement.
GHG emissions
The Greenhouse Gas (“GHG”) Protocol categorises GHG emissions
into three groups, or ‘scopes’:
– Scope 1: direct emissions from owned / controlled sources
– Scope 2: indirect emissions from the generation of purchased energy
– Scope 3: includes all other indirect emissions that occur in the
Company’s value chain
TRIG’s attributable Scope 1, Scope 2 and Scope 3 GHG emissions are
disclosed below, aligned with the GHG Protocol Corporate Accounting
and Reporting Standard and the Partnership for Carbon Accounting
Financials (“PCAF”) methodology. The market-based approach has
been adopted for electricity-based emissions of the portfolio.
As all operational and construction activities are sub-contracted
(i.e., no direct control), TRIG does not consume any energy or have
Scope 1 and 2 emissions related to renewable asset operation
and construction within its own operational boundaries. Instead, it
accounts for all Scope 1, 2, and 3 emissions relevant to each asset
in which it holds equity, using the attribution factor approach defined
by PCAF’s Financed Emissions Standard under the “Project Finance”
approach. Therefore, TRIG includes both required Scope 1 and 2
emissions of all investments, as well as estimates of upstream Scope
3 emissions occurring from the operation, construction, and other
required activities for maintenance of renewable assets.
Disclosure
Year ended
31 December
2023 (restated)
Year ended
31 December
2024
Scope 1 – direct emissions
(tCO
2
e) 0 0
Scope 2 – indirect emissions
(tCO
2
e) 0 0
Scope 3 - emissions
associated with business
travel of non-executive
Directors (tCO2e)
- 8
Scope 3, Category 15 -
operational emissions within
the Company’s value chain
(tCO
2
e) 28,510 25,330
Scope 3, Category 15 -
construction emissions
within the Company’s value
chain (tCO
2
e) 8,155 5,230
Total emissions 36,665 30,568
Intensity ratio (tCO
2
e per
MWh of renewable electricity
generated) 0.0061 0.0052
Understanding the changes in our emissions
In 2024, TRIG only had one construction project compared
to four in 2023, leading to a 36% reduction in emissions related
to construction activities.
In the table above TRIG has included for the first time the emissions
related to business travel of its non-executive Board of Directors.
Emissions associated with the office activities of Fig Power, acquired
by TRIG in 2024, are not included in the table, but accounted for 5
tCO2e. TRIG intends to include these emissions in its future reporting
of scope 3 emissions once it has defined the full scope of emissions
related to the development activity of Fig Power and has collected
the respective data.
Finally, the methodology for calculating emissions from operational
projects were updated in 2024 to reflect the increased availability and
granularity of activity and spend data, which was not accessible in
previous years.
During the reporting period, TRIG’s assets consumed directly 38GWh
of energy, in the form of generator fuel and electricity, and 67% of that
energy was from renewable sources.
77
Strategic Report Governance Financials
TRIG Annual Report 2024
Risk Management
Recommended disclosure Pages
a. Describe the organisation’s processes for
identifying and assessing climate-related risks.
Pages
68 to 76
b. Describe the organisation’s processes for
managing climate-related risks.
Pages
74 to 75
c. Describe how processes for identifying, assessing,
and managing climate-related risks are integrated
into the organisation’s overall risk management.
Pages
68 to 74
Metrics and Targets
Recommended disclosure Pages
a. Disclose the metrics used by the organisation to
assess climate-related risks and opportunities in
line with its strategy and risk management process.
Pages
75 to 76
b. Disclose Scope 1, Scope 2 and, if appropriate,
Scope 3 greenhouse gas (GHG) emissions and
the related risks.
Pages
76
c. Describe the targets used by the organisation to
manage climate-related risks and opportunities
and performance against targets.
Pages
75 to 76
Task Force on Climate-related Financial Disclosures
The table below sets out the 11 TCFD recommendations, and where the related information can be found.
Governance
Recommended disclosure Pages
a. Describe the board’s oversight of climate-related
risks and opportunities.
Pages
68 to 69
b. Describe management’s role in assessing and
managing climate-related risks and opportunities.
Pages
68 to 69
Strategy
Recommended disclosure Pages
a. Describe the climate-related risks and
opportunities the organisation has identified
over the short, medium, and long term.
Pages
70 to 71
b. Describe the impact of climate-related risks and
opportunities on the organisation’s businesses,
strategy, and financial planning.
Pages
72 to 74
c. Describe the resilience of the organisation’s
strategy, taking into consideration different
climate-related scenarios, including a 2°C
or lower scenario.
Pages
72 to 74
78
TRIG Annual Report 2024
Section 172 Statement
During the year to 31 December 2024, the Board has acted in a way that it considers, in good faith, would be most likely to promote the
success of the Company for the benefit of its members as a whole, having due regard for the matters set out in section 172 (1) (a) to (f) of the
Companies Act 2006.
The Company recognises that, to be successful in the long term, the impact of our business on our key stakeholders should be an integral part
of the Board’s decision-making process. The Board also takes the opportunity to engage with our stakeholders as appropriate.
As an externally managed investment trust, the Company has no direct employees. A summary of the Company’s key stakeholders is shown
on page 19, with further commentary on page 86.
Section 172 matter Overview 2024 comment
Further
information
The issues,
factors and
stakeholders
the Directors
consider
relevant in
complying with
section 172(1)
(a) to (f) and
how they have
formed that
opinion
The Board challenges the
Managers to be alert to the
concerns of stakeholders and how
best to address these concerns
to ensure continuing positive
stakeholder engagement.
The Board are regularly updated on items related to section
172(1) (a)-(f) primarily through quarterly Investment Manager and
Operations Manager reports.
The Company’s relationships with suppliers, customers and
contractors is a key part of the operations report, whilst items
relating to shareholders, Company reputation and investment
decisions are contained within the Investment Manager Report.
The Company’s risk review framework (reviewed and reported on
quarterly) also facilitates the identification of items relevant to the
Section 172(1) statement.
Long-term factors relating to the Company’s decisions are also
considered in detail at the annual review of the Strategy by the
Board (see below).
Pages
5, 16-19,
56
The likely
consequences
of any decision
in the long term
TRIG’s purpose and strategy,
alongside the sustainable
approach of the Managers.
The Board undertook a detailed review of TRIG’s long-term strategy
alongside the Managers at the annual strategic review in November
(in addition to the regular quarterly reviews) with particular focus
on capital allocation, portfolio construction and risk management
alongside investor communication considerations in these areas.
Pages
16-19,
54-56,
79, 92
The interests of
the Company’s
employees
Whilst TRIG does not have any
direct employees, our approach
is to positively impact the
communities in which our assets
are located, as well as those that
interact with our assets.
TRIG engages with key suppliers on their approach on diversity,
equity and inclusion (as part of the annual ESG survey) to monitor
alignment with best practices and TRIG’s objectives. High-quality
health and safety continues to be a top priority, with updates in this
area reported to the Board on a quarterly basis.
Pages
36-37,
68-77,
87, 95
The need to
foster the
Company’s
business
relationships
with suppliers,
customers and
others
The Board interacts with all key
stakeholders either directly or
through the Managers.
In the period, the Board evaluated the performance of TRIG’s key
suppliers and the Investment and Operations Manager as part of
TRIG’s annual supplier review processes. As part of this review
process, a new insurance provider (Howden) was appointed.
Pages
86-87,
95
The impact of
the Company’s
operations on
the community
and the
environment
The Board and Managers
recognise that the Company’s
responsibility goes beyond
climate-related environmental
considerations alone. They seek
to incorporate sustainable
practices which can meet the
needs of the present generations
without compromising the needs
of future generations.
Engagement with communities is an integral feature of managing
renewables assets. TRIG carries this out through consultation with
local planning authorities, implementing best practices to minimise
disruption during construction / operation and through an active
programme of contributions to community initiatives through the
establishment of community funds.
2024 was the first full financial year for the ESG Committee
established in 2023. The Committee continued to provide a valuable
forum to discuss ESG matters, including regulation, policies and
performance against key sustainability metrics and to continue to
develop TRIG’s ESG strategy.
Pages
36-37,
68-77,
95
Strategic Report Disclosures
79
Strategic Report Governance Financials
TRIG Annual Report 2024
The examples below demonstrate the manner in which section
172 matters have been considered and reflected as part of key Board
decisions in the period:
– Disposals and capital allocation strategy: The Board and
Investment Manager have considered and clearly outlined in
investor communications (including both the Annual and Interim
reporting) TRIG’s capital allocation strategy, taking into account
the challenging capital markets conditions and TRIG’s balance
sheet position. Disposals totalling £185m were signed in the
year, with four projects sold at a weighted average 10% premium
to NAV. Proceeds were allocated to the repayment of floating
rate borrowings under TRIG’s RCF and a £50m share buyback
programme with £21m deployed in the period to 31 December
2024. £48m was also utilised to fund existing construction and
development commitments consistent with progressing TRIG’s
long-term growth strategy. This included the commissioning of the
Ranasjö and Salsjö onshore wind farms in Sweden in Q1 2024.
– Increasing the dividend with guidance of 7.55p per share for
2025: Maintaining a balance between responsibly increasing
dividends to shareholders where prudent and enhancing portfolio
returns over the long term through reinvestment, the Board, taking
input from the Managers, has increased the target dividend by
1% from the 2024 level.
– Governance – Board evaluation and Fund Manager succession:
To continue to ensure that strong governance is in place at Board
level, the Nomination Committee commissioned an external
evaluation of the Board’s effectiveness in the year, in advance of
the typical three-year cycle. The evaluator reported no material
findings, and a number of their constructive recommendations
have been adopted to further enhance the Board’s operation.
Additionally, as announced in February 2024, responsibility for
the day-to-day management of TRIG was handed over smoothly
to Minesh Shah over the summer in line with Richard Crawford’s
retirement from full-time employment, as announced in the
February 2024 Annual Results.
Summary
On the basis of the Managers’ recommendations, the Directors have
considered existing sustainability and corporate culture policies,
relative to good industry practice for an infrastructure investment
company, believing them to be current and appropriate.
The Board remains committed to high standards of corporate
governance and keeps the Company’s practices under review with
respect to current best practice. Further details of how the Company
complies with the various corporate governance standards are set
out in the Corporate Governance Statement section.
The Board wishes to be at the forefront of disclosure and reporting
of the Company’s performance and strategic intentions. The Board
believes this is achieved by the communications as follows:
– Annual Report and accounts
– Interim statement and accounts
– Detailed presentations to accompany the results
– Announcements of all material acquisition
– Meetings with shareholders held by the Investment Manager
and the Operations Manager
The Company’s website (www.trig-ltd.com) which includes
the Company’s prospectuses, financial disclosures and other
announcements since launch, provides further information on
TRIG and its investments.
Disclosure of key sensitivities and risks has been developed by the
Board working with the Managers. The level and type of disclosure
has been developed and refined to assist in a full and fair analysis
of the Company and its investments.
This Strategic Report is approved by the Board of Directors of
The Renewables Infrastructure Group Limited.
Section 172 matter Overview 2024 comment
Further
information
The desirability
of the Company
maintaining a
reputation for
high standards
of business
conduct
TRIG aims to adhere to the
highest standards of business
conduct in interactions with all
our stakeholders
The Board monitors TRIG’s approach to corporate culture through
both the quarterly Board meetings and ad-hoc interactions with the
Managers. This ensures high standards are adhered to with respect to:
– Promoting diversity and inclusion
– Taking accountability and being transparent in interactions
with stakeholders
– Ensuring careful stewardship of the Company and its assets
Pages
18,
86-89
The need to act
fairly between
members of the
Company
The Board actively engages with
Company shareholders and
considers their interests when
making decisions
Investor meetings are arranged with the Chair and the Senior
Independent Director to give investors the opportunity to discuss
matters directly with the Board. Further, meetings between
shareholders and the Managers take place following the half-yearly
reporting cycles, with key themes being fed back to the Board.
Investors also have the opportunity to discuss matters with the
Board at the Annual General Meeting.
Site visits were also held in the year for investors, with attendance
from Board Directors and representatives from the Managers.
Pages
86,
92-93
Richard Morse
24 February 2025
Registered Office:
East Wind, Trafalgar Court, Les Banques,
St Peter Port, Guernsey GY1 3PP
TRIG Annual Report 2024
80
Governance
WHAT’S IN THIS SECTION
Compliance with the AIC Code 81
Board of Directors 82
Corporate Culture 86
Corporate Governance Statement 90
Committees of the Board 94
Audit Committee Report 96
Remuneration Committee Report 100
Report of the Directors 103
Directors’ Statement of Responsibilities 107
Strategic Report Governance Financials
TRIG Annual Report 2024
81
Board leadership and purpose
The Board is responsible for leading the business in a way that
supports the Company’s purpose of creating shareholder value
from a portfolio of renewable energy generation and supporting
infrastructure, contributing towards a cleaner and more secure future.
Read more on pages 82 to 84
Audit, risk and internal control
The Audit Committee is supported by the Managers and other key
stakeholders to give full consideration to the Company’s financial
reporting. Potential risks and how to best mitigate them are
discussed within the course of each quarterly Board meeting.
Read more on pages 96 to 99
Division of responsibilities
Responsibilities of the Chair and non-executive Directors are reported
in a clear and transparent manner, to enable effective governance.
The Board is supported through the work of both Managers.
Read more on page 85
Composition, succession and evaluation
The Nomination Committee considers the Board’s composition,
including skills, knowledge and experience.
Read more on page 95
Remuneration
The Remuneration Committee ensures a fair reward structure for
the non-executive Directors.
Read more on pages 100 to 102
Compliance with the AIC Code
Details on how the Company has complied with the AIC Code are set out below:
The AIC Code of Corporate Governance
(the “AIC Code”) addresses the principles
and provisions set out in the UK Corporate
Governance Code 2018 (the “UK Code”) and,
for accounting periods commencing from
1 January 2025, the updates to the UK
Code made in January 2024 as they apply to
investment trust companies. The Board considers
reporting against the AIC Code more appropriate
for TRIG and believes this to be more informative
for the Company’s shareholders.
The Board confirms that the Company has applied the principles
and complied with the provisions of the AIC Code (and associated
disclosures under the applicable provisions of paragraph 9.8.6 of
the Listing Rules), insofar as they apply to the Company’s business,
throughout the year to 31 December 2024.
All of the Company’s day-to-day management and administrative
functions are undertaken by third parties. As a result, the Company
has no executive directors, employees or internal audit functions.
The Company therefore does not make any disclosures in respect
ofthese provisions. These are re-assessed on an annual basis.
TRIG Annual Report 2024
82
Relevant skills that support TRIG’s
long-term success:
– Extensive energy, environmental and infrastructure
experience at national and international level in both
the private and public sectors
– Substantial board and governance experience in senior roles
throughout his career, in executive and non-executive roles,
with a particular expertise in mergers and acquisitions and
fundraising for infrastructure, utilities and energy companies
– A highly regarded expert in the field of sustainable energy and
technology with a deep insight into the history and progression
of the sector
Richard Morse
Chair of the Board and
Nomination Committee
Chair
The Board meets a minimum of four times
per year for regular Board meetings and
there are several ad hoc meetings dependent
upon the requirements of the business. The
Company’s strategy is considered at each of
the Board’s quarterly meetings, a dedicated
strategy meeting once a year, and ad hoc
as required. In addition, the Board has six
committees covering the areas of Audit,
Nominations, Remuneration, Management
Engagement, Market Disclosure and
ESG, chaired by respective members of
the Board, which receive and consider
specialist independent adviser reports and
presentations. Health and safety and risk
management both feature as dedicated
agenda items in the Board’s regular,
quarterly meetings.
The Board takes advice from the Investment Manager, InfraRed,
as well as from the Operations Manager, RES, on matters
concerning the market, the portfolio and new investment
opportunities. Day-to-day management of the Group’s portfolio
is delegated to InfraRed and RES, with investment decisions
within agreed parameters delegated to an Investment Committee
constituted by senior members of the Investment Manager.
The Board reviews the performance, including their adherence
with TRIG’s Sustainability Policy, of all key service providers,
including the Investment Manager and Operations Manager, at
least on an annual basis through its Management Engagement
Committee. Further detail on stakeholders can be found in the
Corporate Culture section.
Board of Directors
Appointed 18 July 2022, Richard has more than 40 years’ experience
in the energy, environmental and related infrastructure sectors, as well
as a wealth of experience in investment company governance. He is a
partner in the sustainable energy practice at Opus Corporate Finance.
Among his board appointments, he is a non-executive Director of
Heathrow Southern Railway Limited, and also CCm Technologies
Limited; and a Trustee of the Leeds International Piano Competition.
Richard was previously Chair of JLEN Environmental Assets Group
Limited from its IPO in 2014 to 2022 and Deputy Chair of Bazalgette
Tunnel Limited (“Tideway”) as well as Chair of its Audit and Finance
Committee. He has previously held executive roles as a partner at
Greenhill & Co, Head of European Utilities & Energy at Goldman
Sachs, and Deputy Head of Corporate Finance and Head of Utilities
& Energy at Dresdner Kleinwort Wasserstein. Richard has also held
public sector roles, having been the Deputy Director General of
Ofgem and a Senior Adviser to the Department of Energy and Climate
Change (now subsumed into DESNZ).
Strategic Report Governance Financials
TRIG Annual Report 2024
83
Relevant skills that support TRIG’s
long-term success:
– Extensive renewables and energy generation operational
experience, proving a deep understanding of technology,
commercial, project, portfolio and risk management with a
strong health and safety focus
– Board and governance experience from external
international listed boards ranging from innovation to investment
companies. Combined with a deep energy market insight, various
stakeholder views and understanding of the Net Zero Framework
– Strong people and business development focus, immense
experience with leadership and strategic transition from energy
and infrastructure businesses, encompassing a dedicated
focus on HSQE, D&I, ESG and sustainability
Relevant skills that support TRIG’s
long-term success:
– Investment company and governance; extensive experience
gained over a number of years at multiple FTSE-listed
businesses, in particular during 12 years as a non-executive
Director, including as Audit Committee Chair and Senior
Independent Director at INPP (a FTSE 250-listed infrastructure
Investment Company)
– Accounting, audit and finance; Chartered Accountant with over
40 years’ post-qualification experience including as a Financial
Director of a financial services business and CEO of a large
mobile telephone business
– Shareholder engagement; through John’s executive and
non-executive career he has deep experience of investor
engagement, particularly gained as Audit Chair and Senior
Independent Director of INPP and as Chair of Aberdeen
Frontier Markets Investment Company
John Whittle
Director and Audit
Committee Chair
Tove Feld
Senior Independent
Director and Remuneration
Committee Chair
Appointed 1 March 2020, Tove is a Danish national and has more
than 30 years’ experience in the renewables sector, with a focus on
offshore wind. Her previous roles include Chief Technical Officer at
DONG Energy Wind Power (now Orsted) where she had a prominent
role in preparing the company for IPO, Head of Engineering Solutions
at Siemens Offshore Wind Power, as well as Managing Director of
DNV Global Wind Energy. Tove currently serves as non-executive
Director on a number of boards supporting the Green Energy
Transition including Venterra Group plc, a service provider to the
wind industry; Cloudberry Clean Energy ASA (Chair), a Nordic
IPP; Stockholm Exergi AB, Stockholm´s Energy Company; and
Polytech AS, a global front-runner in wind power innovation and
solutions. She is also a non-executive Director on the Board of YARA
International and serves on the Wind Energy & Energy Systems
Advisory Board of the Danish Technical University. Tove is a UF (USA)
Engineering Graduate (MSc), she has a PhD. from Aalborg University
(Denmark) and Executive MBA from IMD (Switzerland). Tove is a
resident of Denmark.
Appointed 1 July 2021, John Whittle is a Fellow of the Institute of
Chartered Accountants in England and Wales and holds the Institute
of Directors Diploma in Company Direction. He is the non-executive
Chair of Starwood European Real Estate Finance Ltd (LSE) and Audit
Committee Chair of Sancus Lending Group Ltd and Chenavari Toro
Income Fund Limited (listed on the SFS segment of the Main Market
of the London Stock Exchange). Prior to these roles, John was Senior
Independent Director and Audit Committee Chair at International
Public Partnerships Ltd (INPP), the FTSE 250 infrastructure
investment company. In his executive career, among other senior
roles, John served as Finance Director of Close Fund Services and
CEO of Hugh Symons Group PLC. John is a resident of Guernsey.
TRIG Annual Report 2024
84
Appointed 1 March 2022, Erna-Maria is an energy and infrastructure
expert and is currently an independent executive consultant focusing
on renewables, e-mobility, decarbonisation and green transition.
Erna-Maria is also a member of the advisory board of Tyczka GmbH,
a family-owned supplier of LPG, industrial gases and green hydrogen,
and METR Building Management Systems GmbH, a private Internet-
of-Things platform company offering data-driven solutions for
energy-efficient real estate management. She previously served as
Chair of the supervisory board of M-net Telekommunikations GmbH,
as a member of the supervisory board of Energie Suedbayern GmbH
and of the shareholder’s committee of the nuclear power plant Isar 2.
Erna-Maria’s executive roles included membership of the executive
board and chief sales officer of Stadtwerke Müenchen GmbH,
Germany’s largest municipal utility services company, and roles within
the RWE Group and at EnBW Energie Baden-Wuerttemberg AG.
Erna-Maria Trixl
Director and Management
Engagement Committee Chair
Selina Sagayam
Director and ESG
Committee Chair
Relevant skills that support TRIG’s
long-term success:
– Deep understanding of ESG principles from both a legal and
financial perspective, helping to support and enhance the
values at the foundation of TRIG’s investment proposition,
business model and strategy
– Diverse board experience across various private institutions as
well as public boards and charities, bringing valuable insight to
TRIG’s Board as part of decision-making processes
– Corporate governance and shareholder stewardship specialist
with a deep understanding of financial services regulation,
M&A and capital markets
Relevant skills that support TRIG’s
long-term success:
– Extensive energy and renewables expertise across the entire
value chain and experience with renewables investment
strategies and performance management
– Strong business and stakeholder focus, balancing short-term
performance and long-term value creation
– Governance and risk management skills with a focus on
operations, climate risks, sustainability, ESG and health & safety
Board succession
The next expected Board succession process is expected to begin
in 2028, as Tove Feld approaches having served nine years as a
non-executive Director of TRIG.
Further details on the Board and its Nomination Committee’s
approach to succession planning, including considerations
of diversity, equity and inclusion, and the appointment process
for new Directors is provided in the Corporate Governance
Statement section.
Appointed 1 March 2023, Selina Sagayam brings deep corporate
finance and legal experience from her employment at Gibson, Dunn
& Crutcher where she led the firm’s ESG Practice and was Senior
Counsel in their Corporate Group until her retirement from the firm
in October 2024. She also has extensive experience as a mergers &
acquisitions, corporate governance, financial services and regulatory
law adviser. Selina has previously been a non-executive Director
of Hastings Group Holdings PLC and a non-executive Director of
FCA-authorised Hastings Insurance Services Limited and served as
Chair of its Risk & Compliance Committee. Selina was seconded as
the Secretary to the UK Panel on Takeovers and Mergers. Selina also
chaired Gibson Dunn’s UK Diversity & Inclusion Committee and
sat on its Global Diversity Committee. She is a trustee and Vice
Chair of the charity Refuge (and chair of its People, Nomination and
Remuneration Committee), and is a member of the AIC’s ESG forum.
Board of Directors continued
Strategic Report Governance Financials
TRIG Annual Report 2024
85
Directors’ and Managers’
Skills Matrix
Skills & Expertise
1
Investment
Company
management
2
Investors
3
Strategy Transactions Finance
4
Risk Comms & PR Legal HSQE Sustainability
5
Construction
& operational
delivery Cyber
Tove Feld
John
Whittle
Erna-Maria
Trixl
Richard
Morse
Selina
Sagayam
InfraRed
RES
Geographies Technologies
UK & Ireland Core Europe
6
Nordics Iberia Onshore wind Offshore wind Solar Storage
Tove Feld
John
Whittle
Erna-Maria
Trixl
Richard
Morse
Selina
Sagayam
InfraRed
RES
Key: Expertise Experience
1 Specialist advisers are hired where additional expertise is required, including the use of legal advisers.
2 Including management, dividend policy, and regulations (including Guernsey).
3 Including fund raising, shareholder engagement and defence.
4 Including valuation, audit and accounting.
5 Including ESG and D&I
6 Representing France and Germany, as countries where TRIG has investments, and other closely located countries with a similar risk profile.
TRIG Annual Report 2024
86
Stakeholder management
The Board believes in conducting business responsibly, which means behaving ethically, respecting people and the environment.
TRIG maintains high standards of business conduct and stakeholder engagement to ensure a positive impact on the communities and
environment in which the Company operates. This requires consideration of stakeholders by building strong relationships with suppliers,
customers, communities and authorities among others.
TRIG’s relationships with its stakeholders and its dedication to maintaining a responsible approach to investment are essential to position TRIG
well for the longer term – and are expected by its shareholders.
TRIG and its appointees work with many stakeholders in the management of the business in the following categories:
Level Stakeholder group Engagement
Company
Shareholders
The Board of Directors is ultimately accountable to the shareholders for the running of the
business, the making of key strategic decisions and all key appointments of service providers.
Examples of engagement with shareholders during the year can be found on page 21.
The Board delegates certain activities, including day-to-day investment management and
operations management, and works closely with all key service providers. Shareholder
interaction is regarded as a critical component of the management of TRIG and the Board
works closely with the Managers, InfraRed and RES, with the Company Secretary, Aztec
and with the Company’s brokers, Investec and BNP Paribas, to keep abreast of the needs,
feedback and concerns of shareholders.
Corporate
Investment
Manager
Operations
Manager
Other corporate
suppliers
As well as the critical day-to-day oversight of the portfolio provided by InfraRed and RES, TRIG
has a set of corporate providers which ensure the smooth running of the Company:
– Administration & secretarial: Aztec Financial Services (Guernsey)
– Corporate broking: Investec Bank PLC and BNP Paribas
– RCF lenders: National Australia Bank, Royal Bank of Scotland International, ING, Barclays,
Lloyds, BNP Paribas, ABN Amro, Skandinaviska Enskilda Banken (SEB) and Intesa Sanpaolo
– Public Relations: Brunswick Group LLP
– Legal (Guernsey law): Carey Olsen
– Legal (English law): Norton Rose Fulbright LLP
– Registrars: MUFG Corporate Markets (Guernsey) Limited
– Auditing: Deloitte LLP
– Independent Valuation: BDO
– Tax: KPMG
TRIG also has access to several key data providers, including technical reports in relation
to acquisitions and regular power price forecasts and commentary from several specialised
providers. The Company also receives a range of other services, including shareholder list
analysis, webhosting, publication and website design, remuneration consulting, and
non-executive Director recruitment consulting.
Portfolio
Operational
partners
TRIG benefits from co-investing alongside several joint venture partners, some being
developers and vendors, such as Akuo Energy, Equinor, Fred. Olsen Express, Orsted, Repsol,
Scottish Power, SSE, and others being financial co-investment partners, for example, APG,
Equitix and co-investment funds managed by InfraRed. In each case, the Managers build on
the relationship with the co-investor, providing representatives to attend project board meetings
to coordinate and monitor the investment, with the additional potential to share best practices.
Corporate Culture
Strategic Report Governance Financials
TRIG Annual Report 2024
87
Level Stakeholder group Engagement
Portfolio
Local
communities
TRIG is conscious of its role in the local communities in which its projects operate. Close
consultation with local planning authorities is an important feature of renewables whether
in construction, during operations or preparing for the potential repowering or dismantling
of a project. Socially, TRIG seeks to provide educational events at its larger sites, while also
contributing via community funds to local projects ranging from playgroups to cultural events.
Economic activities around the sites provide additional demand for local goods and services
as well as local employment opportunities, for example, access and in the maintenance of the
sites. These are particularly valued in areas where a long-term urbanisation trend has resulted
in reduction in the local rural economies.
TRIG seeks to promote best practices across the portfolio, in areas such as noise monitoring,
shadow flicker, ice throw, landscaping, the provision of community events and liaison with the
local media.
TRIG has onshore wind investments that are located in the communities of the indigenous Sámi
population in Sweden. Regular meetings are held with local Sámi representatives to ensure that
they are kept informed on an accurate, timely and sufficient basis in an open and constructive
manner. Operational arrangements made with the consent of the Sámi people prior to TRIG’s
acquisition of the projects are honoured to ensure they can continue to use the land as agreed
with the projects.
Further details on how TRIG interacts with the local community can be found in our latest
Sustainability Report.
Portfolio
Operational
suppliers
TRIG’s key operational suppliers include Original Equipment Manufacturers (“OEMs”), spare
part Operations and Maintenance (“O&M”) providers and increasingly Independent Service
Providers (“ISPs”). On construction projects the key suppliers are the Energy Performance
Certificate contractors, turbine suppliers (and for other technologies in the portfolio, solar
panel and battery suppliers) and balance of plant contractors. Utilities also provide certain
site-specific services such as meter readings. Detail of engagement with operational suppliers
on health and safety matters can be found within the Operations Report on page 31.
The operations teams maintain relationships with the site landowners who receive
rental payments.
Lenders to the project companies include many leading domestic and international banking
groups. TRIG’s Managers maintain discussions with key lenders as there are opportunities
to refinance projects as market conditions allow, and this has been done selectively within
the portfolio to date.
Portfolio
Vendors
TRIG’s reputation for reliability and efficiency in transaction management with a variety
of vendor counterparties helps the Company to continue to derive value in origination by
accessing projects off-market (including from RES itself under the right of first offer agreement).
Portfolio
Customers
As an energy provider, TRIG’s key customers are Power Purchase Agreements (“PPAs”)
counterparties. These offtakers pay for and receive TRIG’s portfolio companies’ output –
with revenues being payments for the renewables benefits as well as commercial power
for those projects permitted to receive power market revenues. Detail of engagement with
offtakers, including entering PPA contracts, can be found within the Operations Report
section on page 31.
Other Other external
stakeholders
The Company maintains a close dialogue, through its Managers, with key regulators as well as
with the regulated networks, such as National Grid and the relevant network operators in the
UK. At a policy level, TRIG’s Managers monitor requirements and engage with key government
departments and regulatory bodies. At the network level, TRIG’s Managers and O&M providers
communicate in several areas, for example, on grid outage issues, on the role of renewables
assets as locally embedded suppliers of energy as well as on technical or contractual issues.
In the investment company space, the Association of Investment Companies (“AIC”) plays an
important role in shaping the influence of this growing segment of the London market, and
TRIG seeks to apply AIC guidelines where relevant to its business and maintains an active
dialogue as one of the leading companies in its sub-sector. The Managers also keep market
financial analysts appraised of TRIG’s strategy, performance and outlook.
TRIG Annual Report 2024
88
The Company’s approach to corporate culture, including sustainability
and diversity, equity and inclusion, includes:
– Ensuring that the risk culture of the Board and the Company’s
Managers is consistent with the risk appetite of the Company on a
regular basis
– Embedding and improving on good practices in the day-to-day
management processes – which are assessed by the Board in the
course of the quarterly Board meetings as well as in a wide range
of ad hoc interactions during the year
– Ensuring that Managers and the Board maintain specific initiatives
to promote diversity and inclusion
– Promoting an appropriate culture of stewardship, responsibility,
accountability and openness
– A focus by the Board and Managers on appropriate interaction
with key stakeholders, including shareholders, lenders, regulators,
vendors, co-investors and suppliers.
As set out in the Nomination Committee’s Terms of Reference, when
the Nomination Committee considers Board succession planning
and recommends appointments to the Board, it will take into
account a variety of factors. Knowledge, experience, skills, personal
qualities, residency and governance credentials play an important
part. Consideration will also be given to the gender, ethnicity, colour,
national origin, sexual orientation, religion, age and disability of
individuals. The Nominations Committee recognises that a diverse
Board enhances its performance. The Nominations Committee
will also be cognisant of the role it can play in promoting social
mobility. In making recommendations to the Board, the Nominations
Committee will also seek to follow the recommendations of the
Hampton-Alexander Review (and its successor phase – the FTSE
Women Leaders Review) and the Parker Review, the requirements
of the Listing Rules and the Financial Conduct Authority’s (FCA’s)
policy statement on diversity and inclusion on company boards and
executive management. The composition of the Committees of the
Board of Directors are also aligned with each of these frameworks.
TRIG has no direct employees. TRIG engages its non-executive
Directors through letters of appointment. The executive management
of TRIG is provided by its Managers, InfraRed and RES, with
the senior decision-making bodies being InfraRed’s Investment
Committee, and InfraRed’s and RES’s jointly staffed Advisory
Committee. Both InfraRed and RES are global businesses with a
broad cultural representation of employees, reflecting the international
nature of their activities.
Corporate Culture continued
Gender identity and ethnic background reporting as at 31 December 2024:
Number of
TRIG Board
members
Percentage of
the TRIG Board
Number
of senior
positions on
the TRIG Board
Number in
Executive
Management
Percentage
of Executive
Management
Gender identity
Men
2 40% 1 9 90%
Women
3 60% 1 1 10%
Ethnic background
White British or other White (including minority-white groups)
4 80% 2 9 90%
Asian / Asian British
1 20% 0 1 10%
Other ethnic group
0 0% 0 0 0%
In alignment with the UK Listing Rules provisions on diversity and
inclusion, the data shown in the table above reflects the gender and
ethnic background of the Board and the executive management team
(comprising the Investment and Advisory Committees and Company
Secretary). Information was collected on the basis of self-reporting
by the individuals concerned. The questions asked were “Which of
the Parker Review ethnicity categories do you consider yourself to fall
within?” and “What is the gender with which you identify?
As at 31 December 2024, Board diversity targets under the UK Listing
Rules were met, with representation of women on the Board being
60%, one of the senior positions on the Board (Senior Independent
Director) being held by a woman, and one of the Board positions
being held by a Director from a minority ethnic background. This
remains the case as at the date of this Annual Report.
Strategic Report Governance Financials
TRIG Annual Report 2024
89
The Managers support equal opportunities regardless of age, race,
gender or personal beliefs and preferences, both in their recruitment
and when managing existing employees. Both Managers prioritise
workforce engagement and implement a range of initiatives to
enhance employee wellbeing, including fitness and mental health
schemes, mentorship programme, promotion of charity work
and organising social activities. HR systems are in place to allow
employees to raise any concerns in confidence. InfraRed and RES
recognise that, when their employees are engaged, they will benefit
from elevated productivity and increased employee loyalty.
The Board interacts regularly with staff of the Managers, both at
senior and operational levels, in formal and informal settings. This
promotes openness and trust between the key individuals engaged
in delivering against the Company’s objectives and ensures the
Managers remain fully aligned with the Company’s corporate culture
and approach to sustainability. The Board also engages closely
throughout the year with the Company’s administrator, brokers, and
legal and public relations advisers to gauge the broader positioning
and direction of the business.
In addition to the Board Meetings being attended by the core senior
InfraRed and RES teams, other members from InfraRed and RES are
encouraged to join. Not only does this aid their development, but it
also allows the Board to gain insight into how senior management
are supported and how prepared the Managers are in relation to key
person risk and long-term succession planning.
InfraRed started out as a boutique asset manager and has
always maintained a strong culture throughout its 25 years. It
has built a highly experienced and well-rounded team of more
than 160 professionals across five offices, drawing on a clear set
of values centred on the principles of Passion, Curiosity, Trust,
Collaboration and Fulfilment.
InfraRed believes that fostering an inclusive culture with varied
perspectives leads to higher-quality decision-making, which
can enhance its success. InfraRed also promotes fair and safe
working practices, as well as inclusive workplaces, both among
its portfolio companies and its broader supply chain.
RES is a people-oriented company and strives to create a safe
and healthy work environment, which is equitable, inclusive
and diverse and encourages the development of its people so
everyone can reach their full potential. RES believes that this is the
right way to do business.
A diverse and inclusive culture has significant positive benefits
for RES, for individuals and society. RES’s aim is to create an
environment which its people find both rewarding and enjoyable,
and where they are cared for, to enable them to contribute freely
and perform at their best. To achieve this, RES embraces equity,
diversity and inclusion as core parts of its business and embeds
them at every level of the organisation and in every decision
involving its people.
The RESpect initiative is RES’ commitment to provide an inclusive
environment. This includes re-designing talent processes
for equitable outcomes, building knowledge and capability
throughout the business, diversifying its workforce and the supply
chain, and positively impacting the communities in works in.
Anti-bribery and corruption
Although TRIG has no direct employees, TRIG is committed to
upholding human rights in its broader relationships.
TRIG does not tolerate corruption, fraud, the receiving of bribes
or breaches in human rights. Both InfraRed and RES have anti-
corruption and bribery policies in place to maintain high standards
of business integrity, a commitment to truth and fair dealing and a
commitment to complying with all applicable laws and regulations.
Both Managers have training for anti-bribery and corruption which
all employees are required to complete annually.
All counterparties undergo processes to mitigate against bribery
and corruption. When InfraRed completes acquisitions on behalf
of TRIG, counterparty due diligence is performed, and all sales
and purchase agreements are required to have anti-bribery and
corruption protection clauses.
TRIG Annual Report 2024
90
Corporate Governance Statement
Introduction
The Board recognises the importance of a strong corporate
governance culture that meets the listing requirements. The Board
has put in place a framework for corporate governance which
it believes is appropriate for an investment company in line with
the best practices in relation to matters affecting shareholders,
communities, regulators and other stakeholders of the Company.
With a range of relevant skills and experience, all Directors
contribute to the Board discussions and debates on corporate
governance. In particular, the Board believes in providing as much
transparency for investors as is reasonably possible to ensure that
investors can clearly understand the prospects of the business and
enhance liquidity of its shares whilst also preserving an appropriate
level of commercial confidentiality. TRIG and its appointees work
with many stakeholders in the management of the business in the
following categories:
Group structure
The Company has a 31 December year end, announces interim
results in August and full year results in February. The Company pays
dividends quarterly and is a self-managed Alternative Investment
Fund under the European Union’s Alternative Investment Fund
Managers Directive.
TRIG is a Guernsey-registered investment company (which is not
uncommon for UK-listed investment companies). Tax is paid by the
portfolio companies in the markets in which they operate and by the
Company’s shareholders on the dividends they receive (according to
the jurisdiction and taxation status of each shareholder). The structure
ensures that investors are not in a disadvantageous tax position
compared to direct investors in infrastructure projects; in effect this
emulates the structure formalised for real estate investors by the
creation in the UK of Real Estate Investment Trusts (“REITs”).
A similar tax treatment can be achieved by UK Investment Trust
Companies located onshore by applying the UK’s Investment Trust
(Approved Company) (Tax) Regulations (2011) where companies
deem a portion of their dividends paid to investors as interest
distributions (although we note that, for certain UK shareholders, the
tax treatment of interest income is different to dividend income).
The Board keeps the Company’s residency and domicile under
regular review.
TRIG’s Group structure, including management structure and key service providers, is illustrated below.
Appointment
Portfolio of investment
companies
SPV Level
Management and
service contracts
TRIG shareholders
Investment
Investment
Operations Manager
Renewable Energy Systems Limited
Holding Companies /
Special Purpose Vehicles (SVPs)
Company Management
Non-executive
Independent
Board of Directors
Legal, Corporate
Banking,
Public Relations, etc.
Other Company Advisers and
Service Providers
Investment & Operations
Management
Investment Manager
InfraRed Capital Partners Limited
Portfolio SPV contract
management and oversight of
suppliers and counterparties
TRIG - Listed Company
The Renewables Infrastructure
Group Limited
Company Secretary
Aztec Financial Services
(Guernsey) Limited
Administration Services
Strategic Report Governance Financials
TRIG Annual Report 2024
91
AIFM Directive
The Alternative Investment Fund Managers (“AIFM”) Directive seeks
to regulate alternative investment fund managers and imposes
obligations on managers who manage alternative investment funds
(“AIF”) in the EU or who market shares in such funds to EU investors.
The Company is categorised as a self-managed Non-EEA AIF for
the purposes of the AIFM Directive. In order to maintain compliance
with the AIFM Directive, the Company needs to comply with various
organisational, operational and transparency obligations.
AIC Code
The Board of TRIG has considered the Principles and Provisions of
the Association of Investment Companies (“AIC”) Code of Corporate
Governance (“AIC Code”). The AIC Code addresses the principles
and provisions set out in the UK Corporate Governance Code (the
“UK Code”), as well as setting out additional provisions on issues
that are of specific relevance to investment companies. The Board
considers that reporting against the principles and provisions of the
AIC Code, which has been endorsed by the Financial Reporting
Council and the Guernsey Financial Services Commission, provides
more relevant information to shareholders. The Company has
complied with the principles and provisions of the AIC Code. The
AIC Code is available on the AIC website (www.theaic.co.uk). It
includes an explanation of how the AIC Code adapts the principles
and provisions set out in the UK Code to make them relevant for
investment companies. By reporting against the AIC Code, the
Company also meets its obligations under the 2018 UK Corporate
Governance Code (and, for its accounting period commencing from
1 January 2025, will incorporate the updates to the UK Code made
in January 2024) and associated disclosure requirements under
paragraph 9.8.6 of the Listing Rules and the GFSC Finance Sector
Code of Corporate Governance.
Stewardship Code
The Company’s Managers are responsible for day-to-day
management of the portfolio and therefore are best placed to engage
with portfolio companies and discharge stewardship obligations.
Accordingly, TRIG becoming a signatory to the Stewardship Code
would unnecessarily duplicate the work of the Managers.
The Board has instead chosen to exercise stewardship by reporting
against the AIC Code rather than by being signatories to the
Stewardship Code.
Guernsey regulatory environment
The Guernsey Financial Services Commission (the “Commission”)
issued a Finance Sector Code of Corporate Governance. The Code
comprises principles and guidance and provides a formal expression
of good corporate practice against which shareholders, boards and
the Commission can better assess the governance exercised over
companies in Guernsey’s finance sector.
The Commission recognises that the different nature, scale and
complexity of specific businesses will lead to differing approaches to
meeting the Code. Companies which report against the UK Corporate
Governance Code or the AIC Code are also deemed to meet this
code. The Directors have determined that the Company will continue
as a Guernsey-registered closed-ended investment company.
Non-mainstream pooled investments
On 1 January 2014, certain changes to the FCA rules relating
to restrictions on the retail distribution of unregulated collective
investment schemes and close substitutes came into effect.
As announced by the Company on 7 January 2014, following
the receipt of legal advice, the Board confirms that it conducts
the Company’s affairs, and intends to continue to conduct the
Company’s affairs, such that the Company would qualify for approval
as an investment trust if it were resident in the United Kingdom. It is
the Board’s intention that the Company will continue to conduct its
affairs in such a manner and that Independent Financial Advisers
should therefore be able to recommend its Ordinary Shares to
ordinary retail investors in accordance with the FCA’s rules relating to
non-mainstream investment products.
The Board
The Board consists of five non-executive Directors. In accordance
with Provision 10 of the AIC Code, all of the non-executives are
independent of the Investment Manager. The Chair, Richard Morse,
met the independence criteria of the AIC Code Provision 11 upon
appointment and continues to meet this condition throughout his term
of service. In accordance with guidance in Provision 14, the Board
has a Senior Independent Director, Tove Feld, who was appointed as
Senior Independent Director in 2022. Being non-executive Directors,
none of the Directors have a service contract with the Company.
The Articles of Incorporation provide that each of the Directors shall
retire at each Annual General Meeting in accordance with Provision
23 of the AIC Code. All Directors intend to retire and offer themselves
for re-election at the forthcoming Annual General Meeting in summer
2025. In line with the AIC Code, it is intended that the tenure of any
one Director (including the Chair) lasts no longer than nine years.
The Board believes that the balance of skills, gender, experience,
ethnicity, and knowledge of the current Board provides for a sound
base from which the interests of investors will be served to a high
standard.
The Nomination Committee is mindful of the recommendations of
the Hampton-Alexander Review (and its successor phase – the
FTSE Women Leaders Review) on gender diversity, and the Parker
Review on ethnic diversity, and the requirements of the FCA’s policy
statement on diversity and inclusion on company boards and
executive management. The composition of the Board of Directors is
aligned with each of these frameworks.
The Board recommends the re-election of each Director and
supporting biographies are disclosed in the Board of Directors section.
The Board is scheduled to meet at least four times a year, and
between these formal meetings there is regular contact with the
Investment Manager and Operations Manager, the Secretary and
the Company’s Joint Brokers. The Directors are kept fully informed
of investment and financial controls, and other matters that are
relevant to the business of the Company that should be brought
to the attention of the Directors. The Directors also have access,
where necessary in the furtherance of their duties, to independent
professional advice at the expense of the Company.
TRIG Annual Report 2024
92
Corporate Governance Statement continued
The attendance record of Directors for the period to 31 December
2024 is set out below:
During the year, a further 19 ad hoc Board / Committee meetings
were held in Guernsey (or outside of the UK) to deal with matters
substantially of an administrative nature and these were attended by
those Directors available.
The Board considers agenda items laid out in the notice and agenda
of meeting which are circulated to the Board in advance of the
meeting as part of the Board papers. Directors may request any
agenda items to be added that they consider appropriate for Board
discussion. Each Director is required to inform the Board of any
potential or actual conflicts of interest prior to Board discussion.
The Board regularly considers the Company’s strategy with regard to
market conditions and feedback from shareholders received directly
or from the Managers and the Company’s joint corporate brokers.
The investment strategy is reviewed regularly with the Investment
Manager. Board meetings include a review of investment performance
and associated matters such as health and safety, marketing / investor
relations, risk management, gearing, general administration and
compliance, peer group information and industry issues.
The Board and the governance arrangements continued to operate
effectively during 2024.
Performance evaluation
The Board evaluates its performance and considers the tenure and
independence of each Director on an annual basis. The Board also
employs an independent adviser to conduct a formal evaluation of
the effectiveness of the Board with a frequency of at least once every
three years. In 2024, the Nomination Committee commissioned an
external evaluation into the Board’s effectiveness, in advance of the
typical three-year cycle (last review in Q4 2022), from Aspida Advisory
Services Limited, an independent consultant.
As part of their assessment, Aspida carried out a desk-based
mapping exercise against TRIG’s Board documentation, interviewed
each Director independently in addition to personnel from the
Managers, the Company Secretary and the brokers, and attended
the November Board and Committee meetings. Aspida does not
have any other connection with the Company and its Directors.
Aspida concluded in their report that the Board operates at a high
standard. The report outlined that the Board were well prepared
and clear on their duties, had great emphasis on shareholder
communication (in particular, through investors meetings held with
the Chair and Senior Independent Director and attendance at site
visits), and provided a good level of challenge and debate with the
Managers and other service providers on their comprehensive
reporting. It was noted that the Chair promoted a culture of openness,
inviting discussion and facilitating effective contribution from each
of the Directors. Aspida also identified that the Board embraced the
challenge of leading the Company in very different market conditions
to those in the first years of TRIG’s existence following its IPO in 2013
and recognised its collective responsibility to act in the best interest of
the shareholders.
Overall, Aspida concluded that the Board worked well with the
Managers, Company Secretary and other service providers and
demonstrated a high standard of corporate governance.
No material findings were reported, and a number of their
constructive recommendations have been adopted to further
enhance the Board’s operation.
The Board continues to monitor training for Directors. The Directors
consider and regularly report their training needs and continuing
professional development and training carried out. For example,
during the year, the Directors attended courses on relevant subjects
including artificial intelligence, cybersecurity, corporate governance
and crisis management. Additionally, the Board continued its deep
dive into the valuation process with the Investment Manager, following
on from bespoke sessions to cover the build-up of the valuation
alongside the external valuation review carried out in 2023. In the year,
the Investment Manager commissioned an Internal Audit of TRIG’s
valuation process and the Board was led through the audit workplan,
the resulting assessment and minor recommendations were debated
with the Investment Manager together with the relevant/agreed
improvements. The 2025 Directors training programme encompasses
a number of subjects including cybersecurity and ESG.
Site visits are considered important to the Board’s oversight of the
Company. During 2024, a portfolio asset site visit to Green Hill onshore
wind farm in Scotland was organised by the Company’s Managers,
and was attended by members of the TRIG Board alongside investors.
Quarterly Board
meetings Audit Committee
Management
Engagement
Committee
Remuneration
Committee
Nomination
Committee
Market Disclosure
Committee
Environmental,
Social &
Governance
Committee
Number of meetings* 4 4 4 2 3 7 4
Meetings Attended:
R Morse 4 4 4 2 3 5 4
T Feld 4 4 4 2 3 6 4
J Whittle 4 4 4 2 3 6 4
E-M Trixl 4 4 4 2 3 7 4
S Sagayam 4 4 4 2 3 6 4
* The Chair of the Board is not a member of the Audit Committee. In the year Richard Morse attended four Audit Committee meetings as an observer.
Strategic Report Governance Financials
TRIG Annual Report 2024
93
A key element of the Board’s role is to engage with shareholders,
including to provide reassurance as to the robustness of their
oversight of the business and to receive feedback. During 2024,
the Chair of the Company, Richard Morse, and Senior Independent
Director, Tove Feld, met nine separate institutional shareholders. They
received feedback on the Company’s strategy and its Managers, and
answered questions on the Company’s governance. Shareholders
are also able to attend or dial into and ask questions of the Directors
at the Company’s Annual General Meeting, including in relation to the
respective areas of responsibility of each Director.
Responsible investment considerations are at the heart of the
Company’s strategy; during the year Four meetings were held by
the ESG and Sustainability Committee chaired by Selina Sagayam.
The Committee provides a focused level of consideration for these
important topics.
The Directors engage with the senior leadership of both Managers
to understand succession planning at each of the Managers’
organisations. The Board of Directors have been well briefed
throughout the year on changes to the Managers’ teams, including
with respect to changes in the leadership of each team.
The independence of each Director has been considered and each
has been confirmed as being independent of the Company and its
Managers. The Board believes that the composition of the Board and
its Committees reflect a suitable mix of skills and experience, and
that the Board as a whole, and its Committees, functioned effectively
during 2024 and since the launch of the Company in 2013.
The Directors have a breadth of experience relevant to the Company.
The members of the Board strive to challenge each other and
the Company’s Managers constructively and examine issues
from multiple perspectives. The Board has a very high level of
confidence in both Managers. Notwithstanding this, the Board is
deeply cognisant of its responsibilities to shareholders and holds
the Managers to account on their progress on the execution of
the Company’s strategy, approach to sustainability and focus on
responsible investment.
The Nomination Committee also considers whether the Directors
have sufficient time to execute their duties as non-executive
Directors. The nature and extent of roles are considered, as well as
the engagement and responsiveness of Directors to matters of the
Company. No Director is considered ‘overboarded’ or unable to
discharge their duties to the Company.
Delegation of responsibilities
The Board has delegated the following areas of responsibility:
The day-to-day administration of the Company has been delegated
to Aztec Financial Services (Guernsey) Limited in its capacity as
Company Secretary and Administrator.
The Investment Manager has full discretion (within agreed
parameters) to make investments and divestments in accordance
with the Company’s Investment Policy and has responsibility for
financial administration and investor relations, in addition to advising
the Board in relation to further capital raisings and the payment of
dividends, among other matters, subject to the overall supervision
and oversight of the Board. Among the specific tasks of the
Investment Manager are the overall financial management of the
Company and existing portfolio as a whole, including the deployment
of capital, management of the Group’s debt facilities, hedging
arrangements, the sourcing of new investments, preparing the semi-
annual valuations, the statutory accounts, the management accounts,
business plans, presenting results and information to shareholders,
coordinating all corporate service providers to the Group and giving
the Board general advice.
The Operations Manager is responsible for monitoring, evaluating
and optimising technical and financial performance across the
portfolio. The services provided by the Operations Manager include
maintaining an overview of project operations and reporting on
key performance measures, recommending and implementing
strategy on management of the portfolio, including energy sales
agreements, insurance, maintenance and other areas requiring
portfolio-level decisions, maintaining and monitoring health and
safety and operating risk management policies. The Operations
Manager also works jointly with the Investment Manager on sourcing
and transacting new business, divesting of existing investments,
providing assistance in due diligence of potential new acquisitions,
development and construction of projects, refinancing of existing
assets and investor relations. The Operations Manager does not
participate in any investment decisions taken by or on behalf of the
Company or undertake any other regulated activities for the purposes
of the UK’s Financial Services and Markets Act 2000.
Members of the Investment Manager’s and / or the Operations
Manager’s teams are also appointed as Directors of the Group’s
project companies and / or intermediate holding companies and,
as part of their role in managing the portfolio, they attend Board
meetings of these companies and make appropriate decisions.
Material decisions are referred back to TRIG’s Investment Committee
and / or Advisory Committee for consideration and determination,
and the TRIG Board is consulted on key matters relevant to TRIG’s
strategy, policies or overall performance, both on an ad hoc basis
where required and during formal reporting sessions, including all
matters outside the Managers’ delegated authority.
Relations with shareholders –
AIC Code Principle D
The Company welcomes the views of shareholders and places great
importance on communication with its shareholders. The Investment
Manager produces a regular factsheet which is available on the
Company’s website. Senior members of the Investment Manager and
Operations Manager make themselves available, as practicable, to meet
with principal shareholders and key sector analysts. Feedback from
these meetings is provided to the Board on a regular basis. The Board
is also kept fully informed of all relevant market commentary on the
Company by the Company’s Financial PR agency, as well as receiving
relevant updates from the Managers and the Company’s brokers.
During the period, the Chair of the Board met nine separate
institutional shareholders of the Company, with the Senior
Independent Director present at all of the meetings, providing the
chance for shareholders to have a dialogue directly with the Board.
Directors, along with representatives from the Managers, joined
shareholders on a site visit to the Green Hill onshore wind project.
The Company reports formally to shareholders twice a year and will
hold an Annual General Meeting in Guernsey in summer 2025, at which
members of the Board will be available to answer shareholder questions.
Results of Extraordinary and Annual General Meetings are announced
by the Company promptly after the relevant meeting. Additionally,
other notices and information are provided to shareholders on an
ongoing basis through the Company’s website in order to assist
in keeping shareholders informed. The Secretary and Registrar
monitor the voting of the shareholders, and proxy voting is taken into
consideration when votes are cast at the Annual General Meeting.
Shareholders may contact the Board via the Company Secretary,
whose contact details are found in the Directors and Advisers section
of this report.
TRIG Annual Report 2024
94
Committees of the Board
The Committees of the Board are the Audit Committee, the Remuneration Committee, the Nomination Committee, the Management
Engagement Committee, the Market Disclosure Committee and the ESG Committee. Terms of reference for each Committee have been
approved by the Board. The Chair and members of each Committee as at 31 December 2024 are as follows:
Independent Board of Directors
Audit
Committee
John Whittle (Chair)
Tove Feld
Erna-Maria Trixl
Selina Sagayam
Read more on page 96
Market Disclosure
Committee
Richard Morse (Chair)
Tove Feld
John Whittle
Erna-Maria Trixl
Selina Sagayam
Read more on page 95
Environmental, Social &
Governance Committee
Selina Sagayam (Chair)
Richard Morse
Tove Feld
John Whittle
Erna-Maria Trixl
Read more on page 95
Nomination
Committee
Richard Morse (Chair)
Tove Feld
John Whittle
Erna-Maria Trixl
Selina Sagayam
Read more on page 95
Management Engagement
Committee
Erna-Maria Trixl (Chair)
Richard Morse
Tove Feld
John Whittle
Selina Sagayam
Read more on page 95
Remuneration
Committee
Tove Feld (Chair)
Richard Morse
John Whittle
Erna-Maria Trixl
Selina Sagayam
Read more on page 100
Strategic Report Governance Financials
TRIG Annual Report 2024
95
The main terms of reference of the Committee are:
– Regularly review the structure, size and composition required
of the Board and make recommendations to the Board
with regard to any changes (including skills, knowledge and
experience in accordance with Principle K of the AIC Code)
– Give full consideration to succession planning for Directors
taking into account the challenges and opportunities facing
the Company
– Be responsible for identifying and nominating, for the approval
of the Board, candidates to fill Board vacancies as and when
they arise
– Ensure plans are in place for orderly succession to the
Board and oversee the development of a diverse pipeline
for succession
The Nomination Committee met three times during 2024.
All Directors are appointed on merit. When the Nomination
Committee considers Board succession planning and
recommends appointments to the Board, it takes into account
a variety of factors. Knowledge, experience, skills, personal
qualities, residency and governance credentials play an important
part. Consideration is also given to the gender, ethnicity, colour,
national origin, sexual orientation, age, religion and disability of
individuals. The Nomination Committee recognises that a diverse
Board enhances its performance. The Nomination Committee is
also cognisant of the role it can play in promoting social mobility.
In making recommendations to the Board, the Nomination
Committee will also seek to follow the recommendations of the
Hampton-Alexander Review (and its successor phase – the FTSE
Women Leaders Review) and Parker Review.
The Committee has responsibility for overseeing the
disclosure of information by the Company to meet its
obligations under the Market Abuse Regulation and
the FCA’s Listing Rules and Disclosure Guidance and
Transparency Rules.
The main terms of reference for the Committee are:
– To consider and decide whether information meets the
definition of ‘inside information’ and whether the Company
should announce immediately or whether it is permissible to
delay the announcement
– When disclosure of inside information is delayed, to maintain all
required records, monitor the conditions permitting delay and
to provide any required notifications to the FCA
– The Committee should also consider the requirement for an
announcement in the case of leaks of inside information
– To ensure that effective arrangements are in place to prevent
access to inside information
The Market Disclosure Committee met seven times during
2024, in each case determining that no market disclosures were
required in respect of receipt of inside information.
The terms of reference of this Committee are to
review the relationships between the Company and its
main service providers, including their performance,
compliance with their contracts and levels of fees paid.
Recommendations from the Committee’s review are
given to the Board for consideration and action.
The Management Engagement Committee met four times in
2024 in accordance with its plan to review the performance of
the key service providers to the Group and the Company. No
material weaknesses were identified, some recommendations
were conveyed to certain providers and the recommendation
to the Board was that the current arrangements are appropriate
and provide good-quality services and advice to the Company
and the Group. The Committee convenes a planning meeting in
August each year followed by a meeting in November of each
year to review the Investment Manager and Operations Manager,
and a meeting in February of each year to review the other service
providers. The Managers were duly considered at the meeting
of the Management Engagement Committee in November 2024
and no material issues were identified in connection with their
respective appointments.
Details of the activities of the Remuneration Committee and
the Audit Committee are set out in the Directors’ Remuneration
Report and Audit Committee Report sections respectively.
All terms of reference for Committees are available from the
Company’s website or the Company Secretary upon request.
The Committee considers ESG performance, emerging
regulations, good practices and risks within the areas
of ESG and sustainability. Its purpose is to advise
the Board on implementation of the Company’s
Sustainability Policy and to review, consider and
discuss issues, risks and opportunities relating to the
achievement of the Company’s ESG objectives.
The main terms of reference for the Committee are:
– To keep under review the Company’s policies relating to ESG
matters, ensuring continued relevance
– To consider the Managers’, and other service providers’
approach to sustainability
– To consider all regulatory requirements relating to ESG which
may be relevant directly or indirectly to TRIG
– To review high-level performance and disclosure against the
Company’s ESG objectives, metrics and KPIs
The Committee met four times during 2024 with particular
focus on monitoring sustainability KPI targets and considering
upcoming regulation changes and their application to TRIG.
Nomination Committee
Market Disclosure Committee
Management Engagement Committee
ESG Committee
TRIG Annual Report 2024
96
Audit Committee Report
The Audit Committee, which has been in operation
since the inception of the Company, is chaired by John
Whittle. The Audit Committee operates within clearly
defined terms of reference and comprises all of the
Directors other than the Chair (who is not a member,
in accordance with provision 24 of the UK Corporate
Governance Code). It is also the formal forum through
which the auditor reports to the Board of Directors.
The Audit Committee met four times in 2024 (it meets at
least three times annually).
The main duties of the Audit Committee are:
– Giving full consideration of, and recommending to the Board
for approval, the contents of the interim and annual financial
statements and reviewing the external auditor’s report thereon,
including consideration of whether the financial statements are
overall fair, balanced and understandable;
– Agreeing the external audit plan with the auditor, including
discussing with the external auditor the key risk areas within the
financial statements;
– Considering and understanding the key risks of misstatement of the
financial statements and formulating an appropriate plan to review
these and agreeing with the Managers their processes to manage
these risk areas;
– Reviewing the Viability and Going Concern Statements and
the work prepared by the Investment Manager supporting
these statements;
– Reviewing the draft valuation of the Company’s investments
prepared by the Investment Manager and making a
recommendation to the Board on the valuation;
– Reviewing the scope, results, cost effectiveness, independence
and objectivity of the external auditor as well as reviewing
the effectiveness of the external audit process and making
any recommendations to the Board for improvement of the
audit process;
– Reviewing and recommending to the Board for approval the audit,
audit-related and non-audit fees payable to the external auditor or
their affiliated firms overseas and the terms of their engagement;
– Reviewing the appropriateness of the Company’s accounting policies;
– Ensuring the standards and adequacy of the internal control systems;
– Considering any reports or information received in respect of
whistleblowing; and
– Reporting to the Board on how it has discharged its duties.
None of the members of the Audit Committee have any involvement
in the preparation of the financial statements of the Company, as this
has been contracted to the Investment Manager.
The Audit Committee meets the external auditor before and after their
audit and has discussed with the auditor the scope of their annual
audit work and also their audit findings. The auditor attends the
Audit Committee meetings at which the annual and interim accounts
are considered, and at which they also meet with the Committee
without representatives of the Managers being present. The Chair
of the Audit Committee meets with the Audit Partner (without the
Managers being present) to discuss the results of their procedures
performed ahead of the Audit Committee meeting twice a year in
advance of the issue of the Annual Report and the interim financial
report. The Audit Committee has direct access to the auditor and to
key senior staff of the Investment Manager, and it reports its findings
and recommendations to the Board, which retains the ultimate
responsibility for the financial statements of the Company.
Membership
The Chair of the Audit Committee, John Whittle, is a fellow of the
Institute of Chartered Accountants in England and Wales and holds
the Institute of Directors Diploma in Company Direction. John is
also the chair of the audit committee for another listed investment
company and he is a non-executive Director of several listed and
unlisted companies. Previously, John served as the Finance Director
of a financial services business and CEO of a large mobile telephone
business. Prior to John’s appointment as a non-executive Director of
the Company in July 2021, John served for over ten years as a non-
executive Director, including as Audit Committee Chair and Senior
Independent Director, at International Public Partnerships Ltd (INPP),
the FTSE 250 infrastructure investment company. John has extensive
experience in audit, governance and investment companies. John
has over 40 years’ post-qualification accounting experience.
The Board is satisfied that John has recent and relevant financial
experience as required under the UK Corporate Governance Code.
The other members of the Audit Committee during the year were
Tove Feld, Erna-Maria Trixl and Selina Sagayam. Tove and
Erna-Maria have extensive experience of the renewables sector.
The qualifications of the Audit Committee members are outlined
in the Board of Directors section.
Significant issues considered
After discussion with both the Managers and the external auditor,
the Audit Committee determined that the key risks of misstatement
of the Company’s financial statements relate to the valuation of
the investments.
Audit Committee
Strategic Report Governance Financials
TRIG Annual Report 2024
97
Valuation of investments
As outlined in Note 12 to the financial statements, the total carrying
value of the investments at fair value (excluding the fair value of TRIG
UK and TRIG UK I) as at 31 December 2024 was £3,115.6m (2023:
£3,141m). Market quotations are not available for these financial
assets, and as such, their valuation is undertaken using a discounted
cash flow methodology. This requires a series of material judgements
to be made, as further explained in Note 4 to the financial statements.
The valuation process and methodology were discussed by the Audit
Committee with the Investment Manager at the time of the interim
review, in November 2024 prior to the year-end valuation process
and again in February 2025 as part of the year-end sign-off process.
The Committee met with the auditor when it reviewed and agreed
the auditor’s Group audit plan and also at the conclusion of the audit
of the financial statements, in particular discussing the valuation
process. The Investment Manager carries out a valuation semi-
annually and provides a detailed valuation report to the Company. The
Company also engaged a third-party valuation expert to provide an
independent valuation at June 2024 and also to review the valuation
discount rates at December 2024. In August 2024 the expert
provided a report to the Audit Committee that corroborated the
valuation of the portfolio as at June 2024. The expert also provided a
report to the Audit Committee in February 2025 confirming that the
discount rates adopted at 31 December 2024 were reasonable.
Valuation of investments –
key forecast assumptions
The Audit Committee considered in detail those
assumptions that are subject to judgement that
have a material impact on the valuation. The key
assumptions are:
Power price assumptions
A significant proportion of the wind and solar projects’ income
streams are contracted subsidy receipts and power income under
long-term PPAs; some of which have fixed-price mechanisms.
However, over time the proportion of power income that is fixed
reduces and the proportion where the Company has exposure to
wholesale electricity prices increases. The Investment Manager
considers the forecasts provided by a number of expert energy
advisers and adopts a profile of assumed future power prices by
jurisdiction. Further detail on the assumptions made in relation to
power prices and other variables that may be expected to affect
these are included in the Valuation of the Portfolio section on page 38.
During 2024 the Audit Committee continued its programme of
deep dive review sessions with the audit team, and met with the
Investment Manager’s valuation team and one of the three power
price advisers used by the Company to further their understanding
and to review the methodology and assumptions adopted within
the valuation. The Audit Committee is satisfied that the methodology
applied is appropriate.
Macroeconomic assumptions
Macroeconomic assumptions include inflation, foreign exchange,
interest and tax rate assumptions. The Investment Manager’s
assumptions in this area are set out and explained in the Valuation of
the Portfolio section on page 38.
Other key income and costs assumptions
Other key assumptions include operating costs, facility energy-
generation levels and facility remaining operating life assumptions.
The Audit Committee considers energy yield in the valuation as
compared to actual performance on an asset-by-asset basis. In the
current year, some downward energy yield revisions have occurred.
Further detail can be found in the Valuation of the Portfolio section on
page 38.
The Audit Committee considers the remaining operating life
assumptions in light of public information provided by the Company’s
peer group and reports provided by the Operations Manager during
the year, considering the remaining operational lives for investments
and considering any potential extension of those lives and the
recognition of additional value resulting to be appropriate. The
independent valuation carried out in July 2024 also supported the
assumed operating lives.
The Investment Manager has discussed and agreed the valuation
assumptions with the Audit Committee. The Audit Committee held
discussions with the external auditor and the Investment Manager
and ensured that appropriate challenge was applied. In relation
to the key judgements underpinning the valuation, the Investment
Manager has provided sensitivities showing the impact of changing
these assumptions, and these have been reviewed by the Investment
Manager and the Audit Committee to assist in forming an opinion
on the fairness and balance of the Annual Report together with their
conclusion on the overall valuation.
Valuation discount rates
The bifurcated discount rates adopted to determine the valuation
are selected and recommended by the Investment Manager. The
Company uses a bifurcated discount rate approach (as more fully
explained in the Valuation of the Portfolio section on page 38).
The discount rate is applied to the expected future cash flows
for each investment’s financial forecasts derived adopting the
assumptions explained above, among others, to arrive at a valuation
(using a discounted cash flow methodology). The resulting valuation
is sensitive to the discount rates selected. The Investment Manager
is experienced and active in the area of valuing these investments
and adopts discount rates reflecting its current extensive experience
of the market. The Investment Manager also considers the absolute
level and movement in the period in the relevant country risk-free
rates and implied risk premia as a cross-check when considering
appropriate discount rates and movement in these to apply. It is
noted, however, that this requires subjective judgement and that there
is a range of discount rates which could be applied. The discount rate
assumptions and the sensitivity of the valuation of the investments to
this discount rate are set out in the Valuation of the Portfolio section
found on page 38.
The Audit Committee discussed with the Investment Manager
the process adopted to arrive at the selected valuation discount
rates (which includes comparison with other market transactions,
information available from peer group companies and an independent
review of valuation discount rates by a third-party valuation expert
both at December 2023 and at December 2024) and satisfied itself
that the rates applied were appropriate.
TRIG Annual Report 2024
98
Audit Committee Report continued
Alternative Performance Measures
The Audit Committee reviews Alternative Performance Measures
included in the Annual Report to consider their appropriateness
and usefulness to users, ensuring that they are relevant and
appropriately described.
Auditor interaction
The external auditor explained the results of their review of the
valuation, including their consideration of the Company’s underlying
cash flow projections, the macroeconomic assumptions and discount
rates to the Audit Committee. On the basis of their audit work, there
were no adjustments proposed that were material in the context of
the financial statements as a whole. Please refer to the Independent
Audit Report to the Members of The Renewables Infrastructure
Group Limited section.
Internal controls and risk management
The Board is responsible for the Company’s system of internal control
and for reviewing its effectiveness and has therefore established
an ongoing process designed to meet the particular needs of the
Company in managing the risks to which it is exposed.
The process is a risk-based approach to internal control through
a matrix which identifies: the key functions carried out by the
Investment Manager, Operations Manager and other service
providers; the various activities undertaken within those functions;
the risks associated with each activity; and the controls employed
to minimise and mitigate those risks. A scoring based on 1 to 5 for
Likelihood and 1 to 5 for Impact is used and these are multiplied
together to give a total score. Mitigation is considered on a scale of 1
to 5 and this leads to a residual risk rating being derived. The matrix is
updated on an ongoing basis and reviewed quarterly, and the Board
considers all material changes to the risk ratings and the action which
has been, or is being, taken. By their nature, these procedures will
provide a reasonable, but not absolute, assurance against material
misstatement or loss.
At each Board meeting, the Board also monitors the Group’s
investment performance and it reviews the Group’s activities since the
last Board meeting to ensure that the Investment Manager is adhering
to the Company’s Investment Policy and approved investment
guidelines. The pipeline of new potential opportunities and potential
disposals is considered and the prices paid for new investments and
offered for investments for sale during the quarter are also reviewed.
Further, at each Board meeting, the Board receives reports from
the Company Secretary and Administrator in respect of compliance
matters and duties they have performed on behalf of the Company.
The Board has considered the need for an internal audit function and
it has decided that the systems and procedures employed by the
Investment Manager, the Operations Manager and the Administrator,
including their own internal review processes and the processes in
place in relation to the Company, provide sufficient assurance that a
sound system of internal control, which safeguards the Company’s
assets, is maintained. An internal audit function specific to the
Company is therefore considered unnecessary. There is no impact
on the work of the external auditor as a result of not having an internal
audit function.
During the prior year, the Investment Manager commissioned a
suitably qualified accounting firm to review their valuation process.
The Investment Manager briefed the Audit Committee about the
scope of the engagement and the Audit Committee was able to
review the final report. The approach to valuations was deemed
to be appropriate with recommendations provided to enhance the
process further. The Investment Manager has implemented the
recommendations over 2023 and 2024. The Investment Manager
commissioned an Internal Audit during 2024 on the valuation process
and presented the results of this work to the Audit Committee and
agreed a plan to meet the minor recommendation raised by the
Internal Auditor.
The Board recognises that the internal control systems can only be
designed to manage rather than eliminate the risk of failure to achieve
business objectives, and to provide reasonable, but not absolute,
assurance against material misstatement or loss, and relies on the
operating controls established by the Company’s Administrator,
the Investment Manager and the Operations Manager. The Board
considers on a periodic basis whether further third-party assurance
is appropriate, and reviews at least annually the proficiency of such
controls in light of changes in the business and its environment.
The Investment Manager prepares management accounts and
updates business forecasts on a quarterly basis, which allow the
Board to assess the Company’s activities and review its performance.
The Board and the Investment Manager have agreed clearly defined
investment criteria, return targets, risk appetite and exposure limits.
Reports on these performance measures, coupled with cash
projections and investment valuations, are submitted to the Board
at each quarterly meeting.
The Operations Manager prepares quarterly project performance and
project financial analysis, and highlights the key activities performed
and any specific new risks identified relating to the operating portfolio
for consideration by the Board.
Appointment of the external auditor
Deloitte LLP was first appointed to be external auditor for the TRIG
Group on 19 September 2013 and reappointed for a second time
following an extensive audit tender process that concluded in
December 2021. Deloitte’s reappointment was subsequently ratified
by shareholders at the Company’s AGM in May 2022.
In line with the UK Corporate Governance Code and, in particular,
the requirement to put the external audit out to tender at least every
ten years, the Audit Committee conducted a tender exercise for
the external audit of the Company during 2021, as communicated
fully in the Audit Committee Report section in TRIG’s 2021 Annual
Report. The tender exercise was run during the ninth year of Deloitte’s
appointment as the Company’s auditor. The Company intends to
run the next audit tender process within ten years of the recently run
process – i.e. during or before 2031.
The 2021 audit tender process took into consideration best practice
in line with the 2018 UK Corporate Governance Code and the 2019
AIC Code of Corporate Governance. This ensured a fair, robust
and independent tender process was conducted to ensure that the
Company appointed the most suitable firm.
At the conclusion of the 2021 audit tender process and following
the Audit Committee review of submissions and in-person
presentations from shortlisted firms, the Committee members
resolved to recommend the continuing appointment of Deloitte as
auditors, deeming this course of action to be in the best interests
of shareholders, by virtue of the strength and experience of the
Deloitte audit team and lack of demonstrable differentiation shown
by challengers.
Strategic Report Governance Financials
TRIG Annual Report 2024
99
The objectivity of the external auditor is reviewed by the Audit
Committee, which also reviews the terms under which the external
auditor may be appointed to perform non-audit services. The
Audit Committee reviews the scope and results of the audit, its
cost effectiveness and the independence and objectivity of the
auditor, with particular regard to any non-audit work that the auditor
may undertake. In order to safeguard auditor independence and
objectivity, the Audit Committee ensures that any other audit-related
and / or other assurance services provided by the external auditor do
not conflict with their statutory audit responsibilities.
Audit-related and / or other assurance services generally relate to
the review of the interim financial statements and other assurance
work generally completed by the auditor. Any non-audit services
conducted by the external auditor require the consent of the Audit
Committee. The external auditor may undertake additional work for
the Company; however, this is limited to specific services permitted
in line with the Financial Reporting Council’s (FRC’s) ‘whitelist’ of non-
audit services. In general, the Company seeks to avoid using Deloitte
for non-audit services and the Audit Committee will only approve
their appointment for such nonaudit services where the Committee
is convinced that Deloitte are best placed to carry out this work, and
that the appointment would not impair their audit independence.
Total fees paid amounted to £1,148,290 (2023: £1,135,935) for the
year ended 31 December 2024, of which £282,990 (2023: £262,535)
related to audit services to the Company, and £766,790
(2023: £743,700) related to audit of the Group’s subsidiaries, TRIG
UK and TRIG UK Investments, unconsolidated project subsidiaries
and other audit-related services. The non-audit services provided
by Deloitte in the year to the Company and its subsidiaries are in
relation to the review of the interim financial statements at the half
year totalling £74,300 (2023: £70,800), £15,000 (2023: £50,000) for
ESG Agreed Upon Procedures services and minor other services
of £9,300 (2023: £8,900). In addition, audit fees of £40,500 (2023
£77,500) were agreed in the current year in respect to the prior year.
European Union (EU) statutory audit legislation stipulates that
fees for permissible non-audit services in the current year should
not exceed 70% of the average audit fees paid by the Group in
the last three consecutive financial years. The Audit Committee
monitors auditor independence and considers these criteria as
part of this role. For 2024, non-audit services did not exceed the
aforementioned limits.
Notwithstanding such services, the Audit Committee considers
Deloitte LLP to be independent of the Company, and that the
provision of such non-audit services is not a threat to the objectivity
and independence of the conduct of the audit.
To fulfil its responsibility regarding the independence of the external
auditor, the Audit Committee considered:
– Changes in audit personnel in the audit plan for the current period
– A report from the external auditor describing their arrangements to
identify, report and manage any conflicts of interest
– The extent of non-audit services provided by the external auditor
To assess the effectiveness of the external audit process, the Audit
Committee reviewed:
– The external auditor’s fulfilment of the agreed audit plan and
variations from it
– Reports highlighting the major issues that arose during the course
of the audit
– The performance of the auditor during the year
– The Audit Quality Inspection report provided each year by the
Financial Reporting Council in relation to the auditor
– The effectiveness and independence of the external auditor, having
considered the degree of diligence and professional scepticism
demonstrated by them
In addition the Audit Committee considered and assessed the
challenges applied by the auditors with regards to the valuation of
the portfolio being the area of greatest audit focus. Based on the
reporting and discussion, the Committee is satisfied with the level of
challenge and considers the level of technical skills of the audit team
to be strong.
The Audit Partner for the Company is Marc Cleeve. Deloitte rotates
the Audit Partner every five years and the most recent rotation took
place during 2024.
The Audit Committee confirms that TRIG has complied with the
requirements of the Statutory Audit Services for Large Companies
Market Investigation (Mandatory Use of Competitive Tender
Processes and Audit Committee Responsibilities) Order 2014 since
it became a member of the FTSE 250 Index on 18 December 2015
and up to 31 December 2024. Deloitte was appointed as external
auditor in 2013 following a competitive process and reappointed in
2022 following an extensive audit retender exercise, and the Audit
Committee terms of reference are in line with the Order.
The Committee conducts a formal review of Deloitte following the
issue of the annual financial statements, as it did in 2024 to ensure
that the Committee considers all aspects of the auditor’s service and
performance. The outcome of the review in May 2024 was positive
and led to no material concerns over the performance of the auditor.
The Committee will perform a similar review in May 2025.
The Audit Committee remains satisfied with Deloitte’s effectiveness
and independence as auditor, having considered the degree of
diligence and professional scepticism demonstrated by them.
Having satisfied itself that the external auditor remains independent
and effective, and having concluded a full audit tender process in
recent years, the Audit Committee has recommended to the Board
that Deloitte LLP be reappointed as auditor for the year ending
31December 2025.
Audit committee performance evaluation
During the year, the Board commissioned Aspida Advisory Services
Limited to evaluate the effectiveness of the Board and the Board
Committees including the Audit Committee (please see page 92
for more detail of this engagement). Aspida reviewed Board and
Committee papers, interviewed the Board members, the Managers
and other relevant key service providers and attended Board and
Committee meetings. Aspida commented that the Audit Committee
functioned well and effectively. Some minor recommendations were
made that the Audit Committee has considered. The evaluation
confirms that the Audit Committee remains sufficiently skilled and
experienced and effective in carrying out its role.
Financial Reporting Council review
During the year, the FRC’s Audit Quality Review (“AQR”) team
selected Deloitte’s audit of the Company’s 2023 financial statements
as part of their 2023-2024 annual review of audit firms which was
concluded on 12 November 2024. The review was assessed as
‘limited improvements required’. The Committee reviewed the FRC’s
report, discussed it with Deloitte and scrutinised Deloitte’s response
on how it would address the FRC’s limited findings on future audits.
In addition to the limited improvements, the report also identified an
area of good practice which was welcomed by the Audit Committee.
TRIG Annual Report 2024
100
Remuneration Committee Report
The Remuneration Committee, chaired by Tove Feld
and comprising all the Directors, operates within clearly
defined terms of reference.
The terms of reference of the Committee are to
determine and agree the Board policy for the
remuneration of the Directors of the Company, including
the approval of any ad hoc payments in respect of
additional corporate work required (e.g. for the work
involved with the issue of prospectuses and equity
fund raises).
Statement of the Chair of the
Remuneration Committee
As all Directors of the Company are non-executive, they receive an
annual fee appropriate for their responsibilities and time commitment,
but there are no other incentive programmes or performance-
related emolument.
During the year, the Committee commissioned Trust Associates
to provide an Investment Company Non-Executive Directors’
Fees Survey, off the back of their detailed remuneration review
carried out in 2023 which advised an increase in line with UK CPI.
Trust Associates are independent of the Company and its Directors.
The Committee’s review of Directors’ remuneration considered:
– The number of assets in the portfolio, the size of individual assets
and co-investing and partnering activities
– The time commitment required to appropriately perform each
Director’s role and their responsibilities in respect of TRIG;
– Additional fees where a Director’s duties extend beyond those
normally expected as part of the Director’s appointment
(e.g. Chair of the Board or one of its Committees, or Senior
Independent Director)
– Market remuneration levels, including inter alia with reference to the
renewables and infrastructure investment company peer group, to
attract and retain high-calibre Directors
– The fair and equitable treatment of Directors
The Committee proposes and the Board has, subject to shareholders’
approval, agreed to implement increases set out in the tables below,
which are within the recommendations of Trust Associates.
Remuneration Policy
All Directors of the Company are non-executive and are each
engaged through a letter of appointment, and as such there are:
– No service contracts with the Company
– No long-term incentive schemes
– No options or similar performance incentives
– No payments for loss of office unless approved by
shareholder resolution
The Directors’ remuneration shall:
– Reflect the responsibility, experience, time commitment and
position on the Board
– Allow the Chair of the Board, the Senior Independent Director and
the Chair of each of the Board’s committees to be remunerated in
excess of the remaining Board members to reflect their increased
roles of responsibility and accountability
– Be paid quarterly in arrears
– Include remuneration for additional, specific corporate work which
shall be carefully considered and only become due and payable on
completion of that work
– Be reviewed by an independent professional consultant with
experience of investment companies and their fee structures, at
least every three years
The maximum annual limit of aggregate fees payable to the Directors
as set in the Articles of Association is £450,000.
Remuneration Committee
Strategic Report Governance Financials
TRIG Annual Report 2024
101
Remuneration Committee
The Remuneration Committee met two times during 2024 to consider
the remuneration of the Directors. Its membership comprised all
Directors of the Company, which was deemed appropriate as they
are each independent and have the requisite knowledge of the
Company and experience to appropriately determine remuneration.
The table below sets out the Remuneration Committee’s
recommendation for annual base fees for 2025:
Role
2024
Remuneration
2025
Remuneration
Chair of the Board £97,500 £100,000
Director £59,500 £61,000
The Remuneration Committee confirmed its recommendation for
the annual supplement for the additional responsibilities and activities
of Directors:
Role
2024 Additional
Remuneration
2025 Additional
Remuneration
Senior Independent Director £6,000 £6,500
Audit Committee Chair £14,000 £14,500
Other Committee Chair* £4,000 £4,000
* Paid to the Chair of the Management Engagement Committee, Remuneration Committee,
ESG Committee and new committees formed; excludes the Nomination Committee and the
Market Disclosure Committee, which are chaired by the Chair of the Board and are included
in the fee payable to the Chair of the Board.
The table below sets out the Directors’ remuneration approved
and actually paid for the year to 31 December 2024 as well as the
estimated remuneration for the year ending 31 December 2025 based
on the rates set out in the tables above. Where Directors serve for
part of the year, their fee is pro-rated accordingly. Where a Director’s
role changes during the year (e.g. succession of roles such as that of
the Chair), their fees for the year will reflect the period of the year for
which they have borne additional responsibilities.
Director Role
2024
Remuneration
2025
Remuneration
T Feld Remuneration Committee
Chair Senior Independent
Director
£69,500 £71,500
J Whittle Audit Committee Chair £73,500 £75,500
R Morse Director
Chair
£97,500 £100,000
E-M Trixl Director
Management Engagement
Committee Chair
(from 10 May 2023)
£63,500 £65,000
S Sagayam Director (Appointment with
effect from 1 March 2023)
ESG / Sustainability
Committee Chair
(from 1 June 2023)
£63,500 £65,000
Total £367,500 £377,000
Where the Company requires Directors to work on specific corporate
actions, such as the raising of further equity, an additional fee will
be appropriately determined. No additional fees were payable to the
Directors in 2024.
Directors are entitled to claim reasonable expenses which they
incur attending meetings or otherwise in performance of their duties
relating to the Company. The total amount of Directors’ expenses
paid for 2024 was £11,481.
The Board also considered the availability of time of each Director,
taking into account their other commitments, and concluded that
adequate time was, in each case, available for the appropriate
discharge of the Company’s affairs.
TRIG Annual Report 2024
102
Remuneration Committee Report continued
Directors’ interests
The Directors of the Company at 31 December 2024, and their
interests in the Ordinary Shares of the Company, are shown in the
table below.
31 December 2023
Ordinary Shares
31 December 2024
Ordinary Shares
Richard Morse 82,050 130,415
Tove Feld 70,019 90,019
John Whittle 92,000 92,000
Erna-Maria Trixl 32,682 54,042
Selina Sagayam 50,000 50,000
Some of the Directors’ shares may be held by their close associates. All
holdings of the Directors and their families are beneficial. No changes to
these holdings had been notified up to the date of this report.
Other disclosures
At the last AGM, held on 15 May 2024, the following resolution
including Directors’ Remuneration was approved:
Ordinary Resolution 9 – To approve the Directors’ Remuneration
Report, including the proposed annual remuneration for routine
business for each Director, as set out in the Report and Financial
Statements, for the year ending 31 December 2024:
Shares voted Percentage
In favour 1,716,636,088 99.95
Against 904,593 0.05
Withheld 451,889 -
110p
90p
130p
150p
170p
190p
210p
230p
250p
270p
Jan ‘14 Jan ‘15 Jan ‘16 Jan ‘17 Jan ‘18 Jan ‘19 Jan ‘20 Jan ‘21 Jan ‘22 Jan ‘23
TRIG TSR (LHS) TRIG Beta (RHS) Utilities Beta (RHS)FTSE All Share TSR (LHS)
0
0.5
1
1.5
2
2.5
3
3.5
4
Jan ‘24 Jan ‘25
Cumulative Total Return
Beta
Source: Thomson Reuters Datastream.
Performance graph
In setting the Directors’ remuneration, consideration is given to the size and performance of the Company. The graph below highlights the
performance of the Company against the FTSE-All Share Index (of which TRIG is a constituent) rebased to IPO on a total return basis. In
2024, the Total Shareholder Return (on a share price basis) for the Company was -18.8% (2023: -7.1%) versus 9.4% for the FTSE-All Share
Index (2023: 7.7%). Over the period from the IPO in July 2013 to 31 December 2024, the Total Shareholder Return for the Company was
66.2% and for the FTSE-All Share it was 93.2%.
Strategic Report Governance Financials
TRIG Annual Report 2024
103
The Directors present their report and accounts of the
Company for the year to 31 December 2024.
Principal activity
The Company is a closed-ended Guernsey incorporated investment
company, investing in and managing a portfolio of investments in
renewable energy infrastructure project companies. Its shares have
a premium listing on the Official List of the UK Listing Authority and
are traded on the main market for listed securities of the London
Stock Exchange.
Results and distributions
The results for the year are summarised in the Investment Report,
Operations Report and Valuation of the Portfolio sections, and are set
out in detail in the audited financial statements.
Distributions and share capital
The Company has declared four quarterly interim dividends for the
year ended 31 December 2024 for an aggregate annual dividend of
7.47p (2023: 7.18p) per share as follows:
– 1.8675p per share was declared on 8 May 2024, to shareholders
on the register as at 17 May 2024, paid on 28 June 2024
– 1.8675p per share was declared on 6 August 2024, to shareholders
on the register as at 16 August 2024, paid on 30 September 2024
– 1.8675p per share was declared on 7 November 2024, to
shareholders on the register as at 15 November 2024, paid on
31December 2024
– 1.8675p share was declared on 6 February 2025, to shareholders
on the register on 14 February 2025, to be paid on 31 March 2025
The Company had one class of share capital, Ordinary Shares, in
issue as at 31 December 2024.
Shares in issue
Ordinary Shares in issue decreased during the year from
2,484,343,784 to 2,463,893,326 as a result of the purchase of
Ordinary Shares in the period following the announcement of a share
buyback programme and the issues of shares to the Managers in lieu
of fees pursuant to the Investment Management Agreement (in relation
to InfraRed Capital Partners Limited) and the Operations Management
Agreement (in relation to Renewable Energy Systems Limited.
Date Description
New Ordinary
Shares issued Shares repurchased
Number of
shares in issue
31 December 2023 Opening position – – 2,484,343,784
28 March 2024
Issue of shares to the Managers in lieu of fees
relating to H2 2023
800,776 – 2,485,144,560
9 August until
31 August 2024
Shares repurchased – (2,261,000) 2,482,883,560
2nd September until
30 September 2024
Shares repurchased – (5,008,560) 2,478,693,326
30 September 2024
Issue of shares to the Managers in lieu of fees
relating to H1 2024
818,326 – 2,478,693,326
1 October to
31 October 2024
Shares repurchased – (5,745,000) 2,472,948,326
1 November to
30 November 2024
Shares repurchased – (4,200,000) 2,468,748,326
2 December to
31 December 2024
Shares repurchased – (4,855,000) 2,463,893,326
31 December 2024 Closing position – – 2,463,893,326
Equity share issues in the year
There were no equity share issues during the year.
Shares issued to the Managers
The Managers are paid 20% of their annual management fee
(up to an adjusted portfolio value of £1bn) in shares. In relation to
this, 800,776 shares were issued in March 2024 (520,504 to the
Investment Manager and 280,272 to the Operations Manager) relating
to fees for the second six months of 2023. A further 818,326 shares
were issued in September 2024 (531,912 to the Investment Manager
and 286,414 to the Operations Manager) relating to fees for the first
six months of 2024. Shares in lieu of fees relating to the second six
months of 2024 (expected to be 881,732 shares in total – comprised
of 573,126 to the Investment Manager and 308,606 to the Operations
Manager) are to be issued in March 2025. (See Note 17 to the
financial statements for further detail).
For the calculation of Net Asset Value (“NAV”) per share as at
31December 2024, the shares earned by the Managers but not
yet issued at that date have been included in the number of shares
meaning that the Net Assets are divided by 2,464,775,058 shares to
arrive at the NAV per share.
For the calculation of Earnings per Share (“EPS”), the shares earned
by the Managers but not yet issued have not been included in
the calculation of the weighted average number of shares. The
resulting weighted average shares in issue used to calculate EPS is
2,475,058,184.
In addition, senior representatives and connected individuals of the
Managers hold 1,747,134 shares.
As a result of the share issues during the year and the expected
issuance to the Managers in March 2025, the number of shares in
the Company held by the Investment Manager is expected to be
6,460,304 and the number of shares held by the Operations Manager
is expected to be 10,665,854.
SLC Management, the 100% shareholder of InfraRed Capital
Partners, hold 11,419,592 shares.
Report of the Directors
TRIG Annual Report 2024
104
Scrip shares
An annual ordinary resolution to authorise the Directors to offer the
shareholders the right to receive further Ordinary Shares (“scrip
shares”) instead of cash in respect of all or part of any dividend that
may be declared will again be proposed at the forthcoming Annual
General Meeting in 2025.
The Board believes that it remains in the general interest of
shareholders, who may be able to treat distributions of scrip shares
as capital for tax purposes or who may otherwise wish to roll over
their dividend entitlement into further investment in the Company, to
have the option of electing to receive part or all of their dividends in
the form of scrip shares. Shareholders who elect to take scrip shares
instead of receiving cash dividends will increase their holdings without
incurring dealing costs or stamp duty. The Company benefits from
the retention of cash for further investment which would otherwise be
paid out as a dividend.
The Company has been offering the scrip dividend alternative since
February 2014 and this has been popular with many shareholders.
Since late 2022, the Company has been unable to offer the scrip
dividend alternative as a result of the Ordinary Share price being
below the prevailing NAV.
Following feedback from shareholders who were disappointed by
the cancellation of the scrip dividend alternative, the Directors
decided to amend the terms of the scrip dividend alternative so that,
when the share price is trading at a discount to NAV, scrip shares
would be issued at NAV. Accordingly in these circumstances, scrip
shares would be issued at a premium to the prevailing share price
and the number of scrip shares issued to a shareholder may be less
than the number of Ordinary Shares that a shareholder would be
able to acquire in the market using the cash dividend that the
shareholder would otherwise receive if they had not elected for
the scrip dividend alternative.
At the 2023 and 2024 Annual General Meeting, the Company asked
for, and shareholders approved, this amendment to the scrip dividend
alternative to allow scrip dividends to be offered to shareholders when
the Ordinary Shares are trading at a discount to the NAV.
To protect shareholders when the share price discount is greater
than 10% the Directors have discretion to cancel the scrip dividend
alternative, and unfortunately had to do so in relation to the interim
dividends declared for the year ended 31 December 2024, and hence
these dividends were paid in cash.
The Directors expect to reinstate the scrip dividend offering when the
share price improves above a 10% discount to NAV.
No scrip dividends were issued in 2024.
Guernsey regulatory environment
As a Guernsey-registered closed-ended investment company, TRIG
is subject to certain ongoing obligations to the Guernsey Financial
Services Commission.
Directors
The Directors who held office during the year to 31 December
2024 were:
– Richard Morse (Chair)
– John Whittle
– Tove Feld
– Erna-Maria Trixl
– Selina S Sagayam
Biographical details of each of the Directors are shown in the Board of
Directors section.
Investment Manager
InfraRed Capital Partners Limited (the “Investment Manager” or
“InfraRed”) acts as Investment Manager to the Group. A summary of
the contract between the Company, its subsidiaries and InfraRed in
respect of services provided is set out in Note 17 to the accounts.
Operations Manager
Renewable Energy Systems Limited (the “Operations Manager” or
“RES”) acts as Operations Manager to the Group. A summary of the
contract between the Company, its subsidiaries and RES in respect
of services provided is set out in Note 17 to the accounts.
Further details of the Managers are provided in the Creating
Stakeholder Value section of the Strategic Report.
Broker, Administrator and Company Secretary
The Company’s joint brokers during the year to 31 December 2024
were Investec Bank PLC and BNP Paribas.
The Company’s Administrator during the year to 31 December 2024
was Aztec Financial Services (Guernsey) Limited.
Substantial interests in share capital
As at 31 December 2024, the Company has received notification in
accordance with the FCA’s Disclosure and Transparency Rule 5 of the
following interests in 5% or more of the Company’s Ordinary Shares
to which voting rights are attached:
Number of
Ordinary
Shares held
Percentage
held
Rathbones Group 281,012,853 11.4%
Quilter Cheviot 126,981,220 5.2%
Report of the Directors continued
Strategic Report Governance Financials
TRIG Annual Report 2024
105
Donations
The Company made no political donations during the year or the
preceding year.
Payment of suppliers
It is the policy of the Company to settle all suppliers in accordance
with the terms and conditions of the relevant market in which it
operates. Although no specific code or standard is followed, suppliers
of goods and services are generally paid within 30 days of the date of
any invoice. The Company has no trade creditors.
Criminal Finances Act
The Board of The Renewable Infrastructure Company Limited has a
zero-tolerance commitment to preventing persons associated with
it from engaging in criminal facilitation of tax evasion. The Board has
satisfied itself in relation to its key service providers that they have
reasonable provisions in place to prevent the criminal facilitation of
tax evasion by their own associated persons and will not work with
service providers who do not demonstrate the same zero-tolerance
commitment to preventing persons associated with it from engaging
in criminal facilitation of tax evasion.
Going concern
The Company has the necessary financial resources to meet its
obligations for at least the next 12 months following the date of this
report. It is more beneficial to consider going concern from the Group
perspective as the Company has access to funding via the revolving
credit facility (“RCF”) which is borne within its subsidiaries as well
as receiving distributions and cash flows from the underlying group
companies which are passed up to the Company as required as part
of the intercompany funding arrangements.
The Group’s business activities, together with the factors likely to
affect its future development, performance and position, are set out
in the Strategic Report. The financial position of the Group, its cash
flows, liquidity position and borrowing facilities are described in the
Financial Review section on page 48. In addition, Notes 1 to 4 to the
financial statements include: the Group’s objectives, policies and
processes for managing its capital; its financial risk management
objectives; details of its financial instruments and hedging activities;
and its exposures to credit risk and liquidity risk.
The Group benefits from a range of long-term contracts with various
major UK and European utilities and well-established suppliers across
a range of infrastructure projects.
On 5 February 2025, the RCF was renewed and reduced from
£600m to £500m and expires on 31 March 2028. The RCF includes
a working capital component of £60m and is limited to 30% of
Portfolio Value. At 31 December 2024, the Group was £309m drawn
(2023: £364m), the Group’s leverage was 10% for fund level financing
(2023: 10%). The Group’s project-level financing is non-recourse to
the Company and is limited to 50% of Gross Portfolio Value. The
gearing level is 37% for project-level financing (2023: 37%). As a
consequence, the Directors believe that the Group is well placed to
manage its business risks successfully.
The RCF is ESG-linked, resulting in a possible increase or reduction to
future interest payments based on the Group’s performance against
KPIs relating to ESG targets over time.
1
The Group has a number of commitments related to the construction
of assets held within the portfolio, and has sufficient headroom in its
RCF to finance these activities.
The Group has sufficient headroom on its RCF covenants. These
covenants have been tested and relate to interest cover ratios
and group gearing limits and the Group does not expect these
covenants to be breached. The Company and its direct subsidiaries
have a number of guarantees, detailed in Note 18 of these financial
statements. These guarantees relate to certain obligations that
may become due by the underlying investments over their useful
economic lives. We do not anticipate these guarantees to be called in
the next 12 months and, in some cases, the potential obligations are
insured by the underlying investments.
In the year ended 31 December 2024, the Group net reduced the
RCF outstanding balance by c.£55m. The Group’s cash flows in
the year, along with proceeds from disposals, enabled the Group
to reduce the RCF balance as well as meeting the investment
commitments falling due in the year.
Operating cash flows are expected to remain healthy in the next few
years as wholesale electricity prices remain relatively strong and
are expected to enable investment commitments to be partially met
by operational cash flows with the balance being funded by RCF
drawdowns and / or divestment proceeds. Further selective asset
disposals are expected in 2025, and the proceeds will be used to
further reduce the outstanding RCF balance which was £309m
drawn at the date of this report.
The Directors have assessed ongoing risks (such as rising inflation
and interest rates, global conflicts and global supply chain issues)
and do not believe that there is a significant risk to the business
as a result of these uncertainties and will continue to monitor any
future developments.
The Company is affected by climate-related risks, as set out in the
Company’s TCFD reporting on page 68 of this Annual Report, and
the Board consider these when they assess the Company’s ability
to continue as a going concern. The Company continues to assess,
monitor and, where necessary and possible, mitigate and manage
these risks. These risks are not expected to have a material impact in
the next 12 months.
Having performed the assessment of going concern, the Directors
have a reasonable expectation that the Group and therefore the
Company has adequate resources to continue in operational
existence for a period of at least 12 months from the date of these
financial statements. Thus, they adopt the going concern basis of
accounting in preparing the annual financial statements.
This conclusion is based on a review of the Group’s cash flow
projections including reasonably expected downside sensitivities
together with cash and committed borrowing facilities available to it.
Further detail is provided in the viability statement on page 54.
1 The increase / decrease that would be applied to the RCF interest margin if all of the ESG KPIs are not met / met respectively is 0.05% which if, applied to the year-end RCF balance of £309m,
would lead to an increase / decrease in the annual interest charge of c.£150,000. The margin increase / decrease will be half of this level if one / two KPIs are met (0.025% increase if one out of
three KPIs met, 0.025% decrease if two out of three KPIs are met).
TRIG Annual Report 2024
106
Internal controls review
Taking into account the information on emerging and principal
risks and uncertainties provided in the Risk and Risk Management
section, and the ongoing work of the Audit Committee in monitoring
the risk management and internal control systems on behalf of the
Board (see the Audit Committee Report section), the Directors:
– Are satisfied that they have carried out a robust assessment of
the principal and emerging risks facing the Company, including
those that would threaten its business model, future performance,
solvency or liquidity;
– Are satisfied the Company has adequate safeguards and
procedures in place to function effectively and ensure operational
continuity in the event of a major business interruption (such
as a pandemic or cyber attack) including step-in plans for key
personnel and systems;
– Continue to monitor emerging risks facing the Company, including
but not limited to the ongoing global conflicts, inflationary
pressures and constraints in global supply chains; and
– Have reviewed the effectiveness of the risk management and
internal control systems, and no significant failings were identified.
The internal controls review covers material controls including
financial, operational and compliance controls.
To enable the Directors to provide this statement in relation to risks
and controls, the Directors have worked with the Managers to:
– Review the Company’s risk dashboard and framework each
quarter (including discussion as to whether TRIG is within the
Company’s risk appetite;
– Consider each Manager’s compliance with their own internal
controls each quarter;
– Receive presentations from each Manager on the effectiveness
of these controls and their internal controls environment at
least annually;
– Consider the Company’s risk appetite statement, agree this with
the Managers, and document this;
– Assess the impact of a major business interruption (such as a
pandemic) on the Company;
– Identify key personnel, systems and document step-in plans to
ensure business continuity; and
– Consider the risk culture of the Company and within the
Managers and confirm that these are appropriate and expected
to support the sustainability of the Company and consistent with
the risk appetite.
Report of the Directors continued
Share repurchases
There have been share buybacks in the period. The Company
commenced a £50m share buyback programme on 9 August 2024.
During the period, the Company purchased 22,069,560 of its own
shares and holds these shares in treasury. The latest authority for
the Company to make market purchases of Ordinary Shares was
granted to the Directors on 15 May 2024 and expires on the date of
the next Annual General Meeting. The Directors are proposing that
their authority to buy back shares be renewed at the forthcoming
Annual General Meeting.
Treasury shares
Section 315 of the Companies (Guernsey) Law, 2008 allows
companies to hold shares acquired by market purchase as treasury
shares, rather than having to cancel them. Up to 14.99% of the
number of shares in issue at the date of the last AGM (15 May 2024)
may be held in treasury and may be subsequently cancelled or sold
for cash in the market. This gives the Company the ability to reissue
shares quickly and cost efficiently, thereby improving liquidity and
providing the Company with additional flexibility in the management
of its capital base.
As at the signing date of these financial statements, there are 36m
shares held in treasury. The Board would only authorise the sale of
shares from treasury at prices at or above the prevailing NAV per
share (plus costs of the relevant sale). If such a measure were to
be implemented, this would result in a positive overall effect on the
Company’s NAV. In the interests of all shareholders, the Board will
keep the matter of treasury shares under review.
On behalf of the Board of Directors of The Renewables
Infrastructure Group Limited
Richard Morse
24 February 2025
Registered Office:
East Wing, Trafalgar Court, Les Banques,
St Peter Port
Guernsey, Channel Islands, GY1 3PP
Strategic Report Governance Financials
TRIG Annual Report 2024
107
The Directors are responsible for preparing the Directors’
Report and the financial statements in accordance with
applicable law and regulations.
The Companies (Guernsey) Law, 2008 requires the Directors to
prepare financial statements for each financial year. Under that law,
the Directors are required to prepare the Group financial statements in
accordance with International Financial Reporting Standards (“IFRS”)
as adopted by the European Union.
Under company law, the Directors must not approve the financial
statements unless they are satisfied that they give a true and fair view
of the state of affairs of the Company and of the profit or loss of the
Company for that period.
In preparing these financial statements, International Accounting
Standard 1 requires that Directors:
– Properly select and apply accounting policies;
– Present information, including accounting policies, in a
manner that provides relevant, reliable, comparable and
understandable information;
– Provide additional disclosures when compliance with the
specific requirements in IFRSs are insufficient to enable users
to understand the impact of particular transactions, other events
and conditions on the entity’s financial position and financial
performance; and
– Make an assessment of the Company’s ability to continue as a
going concern.
The Directors are responsible for keeping proper accounting records
that are sufficient to show and explain the Company’s transactions
and disclose with reasonable accuracy at any time the financial
position of the Company and enable them to ensure that the financial
statements comply with the Companies (Guernsey) Law, 2008. They
are also responsible for safeguarding the assets of the Company and
hence for taking reasonable steps for the prevention and detection of
fraud and other irregularities.
The Directors are responsible for the maintenance and integrity of
the corporate and financial information included on the Company’s
website. Legislation in Guernsey and the United Kingdom governing
the preparation and dissemination of financial statements may differ
from legislation in other jurisdictions.
Directors’ Statement of Responsibilities
Richard Morse
24 February 2025
Registered Office:
East Wing, Trafalgar Court, Les Banques,
St Peter Port
Guernsey, Channel Islands, GY1 3PP
Directors’ responsibility statement
We confirm that, to the best of our knowledge:
– The financial statements, prepared in accordance with International
Financial Reporting Standards, give a true and fair view of the
assets, liabilities, financial position and profit or loss of the Company;
– The Chair’s Statement, the Strategic Report and Report of the
Directors include a fair review of the development and performance
of the business and the position of the Company and Group taken
as a whole together with a description of the principal risks and
uncertainties that it faces; and
– The Annual Report and financial statements when taken as a whole
are fair, balanced and understandable and provide the information
necessary for shareholders to assess the Company’s position,
performance, business model and strategy.
This responsibility statement was approved by the Board of Directors
on 24 February 2025 and is signed on its behalf by:
FinancialsStrategic Report Governance
TRIG Annual Report 2024
109
Report on the audit of the financial statements
1. Opinion
In our opinion the financial statements of The Renewables Infrastructure Group Limited (the ‘company’):
– give a true and fair view of the state of the company’s affairs as at 31 December 2024 and of its loss for the year then ended;
– have been properly prepared in accordance with IFRS Accounting Standards as adopted by the European Union; and
– have been prepared in accordance with the requirements of the Companies (Guernsey) Law, 2008.
We have audited the financial statements which comprise:
– the company income statement;
– the company balance sheet;
– the company statement of changes in shareholders’ equity;
– the company cash flow statement; and
– the related notes 1 to 21.
The financial reporting framework that has been applied in their preparation is applicable law, and IFRS Accounting Standards as adopted by
the European Union.
2. Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under
those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report.
We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the
UK, including the Financial Reporting Council’s (the ‘FRC’s’) Ethical Standard as applied to listed public interest entities, and we have fulfilled our
other ethical responsibilities in accordance with these requirements. The non-audit services provided to the company for the year are disclosed
in note 6 to the financial statements. We confirm that we have not provided any non-audit services prohibited by the FRC’s Ethical Standard to
the company.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
3. Summary of our audit approach
Key audit matters The key audit matter that we identified in the current year was:
– The assessment of the fair value of investments
Materiality The materiality that we used in the current year was £57.0m which was determined on the basis of 2%
of shareholders’ equity.
A lower materiality threshold of £3.5m based upon 3% of interest income from investments (excluding
fair value movements in the portfolio valuation) was applied to balances in the income statement and
balance sheet, excluding fair value of investments, equity and derivatives balances and their associated
fair value movements.
Scoping As the company is required to measure its subsidiaries at fair value rather than consolidate on a
line-by-line basis, the company has been treated as having only one component.
Significant changes
in our approach
There have been no significant changes in our approach from the prior year
Independent Auditor’s Report
To the members of The Renewables Infrastructure Group Limited
TRIG Annual Report 2024
110
4. Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the
financial statements is appropriate.
Our evaluation of the directors’ assessment of the company’s ability to continue to adopt the going concern basis of accounting included:
– evaluating the going concern assessment prepared by the Investment Manager and reviewed by the Board and, assessing the
reasonableness of assumptions applied in the forecasts including the impact of climate change and energy market disruption; evaluating
consistency of the forecast assumptions applied in the going concern assessment with forecasts used within the
investment valuation;
– testing the clerical accuracy and the integrity of the model used to prepare the forecasts;
– assessing the historical accuracy of forecasts prepared by management;
– reviewing the new revolving credit facility (RCF) agreement entered into by the group through TRIG UK I, including consideration of its limit,
availability and the covenants included;
– assessing the future commitments and guarantees of the group;
– considering the amount of headroom in the forecasts including assessing the appropriate downside sensitivities (cash and revolving credit
facility covenants); and
– assessing the appropriateness of the going concern disclosures in the financial statements.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or
collectively, may cast significant doubt on the company’s ability to continue as a going concern for a period of at least twelve months from when
the financial statements are authorised for issue.
In relation to the reporting on how the company has applied the Association of Investment Companies Code of Corporate Governance (the “AIC
code”), we have nothing material to add or draw attention to in relation to the directors’ statement in the financial statements about whether the
directors considered it appropriate to adopt the going concern basis of accounting.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
5. Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the
current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) that we identified. These
matters included those which had the greatest effect on: the overall audit strategy, the allocation of resources in the audit; and directing the
efforts of the engagement team.
These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do
not provide a separate opinion on these matters.
Independent Auditor’s Report continued
FinancialsStrategic Report Governance
TRIG Annual Report 2024
111
5.1. The assessment of the fair value of investments
Key audit matter
description
The company’s investments held at fair value at 31 December 2024 comprise investments in intermediate
holding companies, equity and subordinated debt interests as well as mezzanine level bonds in wind farm,
solar park and battery storage projects. The company, its subsidiaries and its portfolio of investments are
known as “the Group”. These investments are classified at Level 3 within the IFRS 13 fair value hierarchy
and their valuation requires significant judgement.
The company’s portfolio has decreased by £340.2m in the year to £2,800.7m at 31 December 2024
(31 December 2023: £3,140.8m); £275.6m of the decrease is recognised through the income statement
as a fair value loss.
Certain assumptions used in the determination of fair value are a key source of estimation uncertainty,
which is why we consider there to be a risk of material misstatement as well as a potential for fraud
through possible manipulation of this balance. As there is no liquid market for these investments, they
are measured using a discounted cash flow methodology. The complex nature of this methodology,
combined with the number of significant judgements and the sensitivity of the valuation to changes in
these judgements and assumptions means there is a risk that the fair value of the investments could
be misstated.
The key assumptions that contain the highest level of judgement and to which the valuation is most
sensitive have been summarised as:
– Discount rates – the determination of the appropriate bifurcated discount rates for each investment that
is reflective of current market conditions and specific risks of the investment;
– Forecast inflation rates in the short-term and long-term for the applicable geographies where the
company has investments;
– Forecast power prices, including the consideration of government imposed levies and caps, forward
prices, cannibalisation, and the impact of climate change; and
– Energy yields based on the P50 budgeted production which assume production will be average (i.e.
will have a 50% probability of exceeding the average yield) factoring in different geographies and asset
specific factors.
The Audit Committee have set out their consideration of the risk on page 98 and it is disclosed as a key
source of estimation uncertainty in note 3 of the financial statements. A breakdown of the investments
and the assumptions applied to the valuation and related sensitivities are described in note 4 of the
financial statements.
TRIG Annual Report 2024
112
How the scope of
our audit responded
to the key audit matter
We challenged the key judgements and assumptions in our assessment of the fair value of investments as
well as the sensitivity of the valuation to reasonably possible changes in these assumptions.
Our audit procedures included the following:
– obtaining an understanding and testing the relevant controls in respect of the valuation process adopted
by the Investment Manager and Board, including the incorporation of updates to the valuation models
used at 31 December 2024;
– disaggregating projects based upon our risk assessment in order to challenge the cash flow projections
and explanations for significant movements in the forecast, with detailed model review procedures
using analytics performed on higher risk projects and performing analytical reviews on the remainder
of the projects;
– involving our valuation specialists in assessing the bifurcation discount rate methodology and
benchmarking the discount rates against comparable market participants and transactions and
considering the inherent risk profile of the underlying cash flows specific to each investment and
assessing the inflation rates included within the valuation;
– evaluating the inflation rate assumptions included in the forecasts with reference to observable market
data and external forecasts;
– evaluating the power price curves used in the model through independent recalculation of the curves
and agreement of inputs back to external source data;
– assessing the impact of climate change on the power price curves, in respect of the wholesale curves
selected and cannibalisation rates, used within the fair value of the investments;
– assessing the independent advice received by the company in respect of power prices and discount
rates, meeting with those advisors where appropriate to understand the methodology used, and
challenging key assumptions through the use of benchmarking against third party sources;
– evaluating the historical average trends of actual generation compared to the P50 budget in assessing
the reasonableness of assumed energy yields;
– holding meetings with the Operations Manager to understand the performance of the underlying Special
Purpose Vehicles (SPVs), including consideration of actual generation variance to energy yield budget;
– involving our tax specialists in assessing the tax treatment of portfolio level reliefs;
– reviewing share purchase agreements for asset acquisitions and divestments during the year in order to
determine the impact on the valuation;
– understanding and challenging management’s process for determining costs to complete for projects in
construction through review of the estimated costs to complete;
– assessing the incorporation of the assumptions into the valuation and the correct application of the
selected discount rates; and
– evaluating the adequacy of the disclosures made in the financial statements including the sensitivities
applied to the valuation.
Key observations Based on the audit procedures performed and our benchmarking of assumptions we identified that some
areas of the valuation were more conservative, such as discount rates, offset by other more optimistic
judgements including long term inflation rates in the UK and energy yields. We concluded in aggregate that
the assumptions are within the acceptable range of reasonably possible alternatives and that the fair value
of investments is reasonable.
Independent Auditor’s Report continued
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Shareholders’ equity Materiality
Audit committee
reporting threshold
£2.9m
Materiality
£57.0m
Shareholders’ equity
£2,856.3m
6. Our application of materiality
6.1. Materiality
We define materiality as the magnitude of misstatement in the financial statements that makes it probable that the economic decisions of a
reasonably knowledgeable person would be changed or influenced. We use materiality both in planning the scope of our audit work and in
evaluating the results of our work.
Based on our professional judgement, we determined materiality for the financial statements as a whole as follows:
Materiality £57.0m (2023: £63.0m)
Basis for determining
materiality
2% of shareholders’ equity (2023: 2% of shareholders’ equity)
Rationale for the
benchmark applied
We consider equity to be the key benchmark used by shareholders of the company in assessing
financial performance.
A lower materiality threshold of £3.5m (2023: £3.6m) based upon 3% of interest income from investments (excluding fair value movements in
the portfolio valuation) has also been used. This has been applied to balances in the income statement and balance sheet, excluding fair value
of investments, equity and derivatives balances and their associated fair value movements, due to qualitative factors of stakeholder interest.
6.2. Performance materiality
We set performance materiality at a level lower than materiality to reduce the probability that, in aggregate, uncorrected and undetected
misstatements exceed the materiality for the financial statements as a whole. Performance materiality was set at 70% of materiality for the
2024 audit (2023: 70%). In determining performance materiality, we considered the following factors:
a. the quality of the control environment at the company and the Investment Manager;
b. the overall stability of the business;
c. the willingness of the Investment Manager to correct errors identified; and
d. the consistency and the competency of the finance team.
6.3. Error reporting threshold
We agreed with the Audit Committee that we would report to the Committee all audit differences in excess of £2.9m (2023: £3.2m), as well
as differences below that threshold that, in our view, warranted reporting on qualitative grounds. We also report to the Audit Committee on
disclosure matters that we identified when assessing the overall presentation of the financial statements.
TRIG Annual Report 2024
114
7. An overview of the scope of our audit
7.1. Scoping
Our audit was scoped by obtaining an understanding of the entity and
its environment, including internal control, and assessing the risks of
material misstatement. Audit work to respond to the risks of material
misstatement was performed directly by the audit engagement team.
As the company is an investment entity under IFRS 10, its subsidiaries
are measured at fair value rather than consolidated on a line-by-line
basis. Therefore, the company has been treated as having only one
component and all of the audit work was performed directly by the
audit engagement team.
7.2. Our consideration of the control environment
We have obtained an understanding of the control environment
and have tested the relevant controls to address our significant
risks and other key account balances and transactions, including
journal entries, the financial reporting process and the valuation of
investments. This included the control environment and relevant
controls operating at the Investment Manager as a key service
provider to the company.
7.3. Our consideration of climate-related risks
Management has considered transition and physical risks when
factoring in climate change as part of their risk assessment process
when considering the principal risks and uncertainties facing the
company. These risks have been focused on the assumptions
underlying the valuation of investments, and include power price
forecasts, energy yields, asset availability and maintenance costs.
In our evaluation of the climate-related risks facing the company, we
considered that the key assumption is the power price forecasts; this
is linked to the key audit matter as highlighted in section 5.1, where we
have described both the risks related to these assumptions and our
audit procedures in relation to the challenge of this assumption.
The climate change risk factors underpinning the assumptions
have been explained in note 3 of the financial statements. With
the involvement of our ESG specialists, we have evaluated the
appropriateness of disclosures included in the financial statements
and have read the annual report to consider whether other climate
change disclosures are materially consistent with the financial
statements and our knowledge obtained in the audit, including the
consideration of net zero power curves used to assess the impact of
certain transition risks on the valuation of the portfolio.
8. Other information
The other information comprises the information included in the
annual report, other than the financial statements and our auditor’s
report thereon. The directors are responsible for the other information
contained within the annual report.
Our opinion on the financial statements does not cover the
other information and we do not express any form of assurance
conclusion thereon.
Our responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent with
the financial statements or our knowledge obtained in the course of
the audit, or otherwise appears to be materially misstated.
If we identify such material inconsistencies or apparent material
misstatements, we are required to determine whether this gives rise
to a material misstatement in the financial statements themselves.
If, based on the work we have performed, we conclude that there is
a material misstatement of this other information, we are required to
report that fact.
We have nothing to report in this regard.
9. Responsibilities of Directors
As explained more fully in the directors’ responsibilities statement,
the directors are responsible for the preparation of the financial
statements and for being satisfied that they give a true and fair view,
and for such internal control as the directors determine is necessary
to enable the preparation of financial statements that are free from
material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible
for assessing the company’s ability to continue as a going concern,
disclosing as applicable, matters related to going concern and using
the going concern basis of accounting unless the directors either
intend to liquidate the company or to cease operations, or have no
realistic alternative but to do so.
10. Auditor’s responsibilities for the audit of
the financial statements
Our objectives are to obtain reasonable assurance about whether the
financial statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue an auditor’s report
that includes our opinion. Reasonable assurance is a high level
of assurance, but is not a guarantee that an audit conducted in
accordance with ISAs (UK) will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users
taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the
financial statements is located on the FRC’s website at:
www.frc.org.uk/auditorsresponsibilities. This description forms
part of our auditor’s report.
Independent Auditor’s Report continued
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115
11. Extent to which the audit was considered
capable of detecting irregularities,
including fraud
Irregularities, including fraud, are instances of non-compliance
with laws and regulations. We design procedures in line with our
responsibilities, outlined above, to detect material misstatements
in respect of irregularities, including fraud. The extent to which our
procedures are capable of detecting irregularities, including fraud is
detailed below.
11.1. Identifying and assessing potential risks related
to irregularities
In identifying and assessing risks of material misstatement in respect
of irregularities, including fraud and non-compliance with laws and
regulations, we considered the following:
– the nature of the industry and sector, control environment and
business performance including the design of the company’s
remuneration policies, key drivers for directors’ and Investment
Managers remuneration, bonus levels and performance targets;
– results of our enquiries of management, the directors and the
Audit Committee about their own identification and assessment
of the risks of irregularities, including those that are specific to the
company’s sector;
– any matters we identified having obtained and reviewed the
company’s documentation of their policies and procedures relating to:
– identifying, evaluating and complying with laws and regulations
and whether they were aware of any instances of non-
compliance;
– detecting and responding to the risks of fraud and whether they
have knowledge of any actual, suspected or alleged fraud;
– the internal controls established to mitigate risks of fraud or non-
compliance with laws and regulations;
– the matters discussed among the audit engagement team and
relevant internal specialists, including tax, valuations and ESG
specialists regarding how and where fraud might occur in the
financial statements and any potential indicators of fraud.
As a result of these procedures, we considered the opportunities
and incentives that may exist within the organisation for fraud and
identified the greatest potential for fraud in the assessment of fair
value of investments. In common with all audits under ISAs (UK), we
are also required to perform specific procedures to respond to the
risk of management override.
We also obtained an understanding of the legal and regulatory
framework that the company operates in, focusing on provisions
of those laws and regulations that had a direct effect on the
determination of material amounts and disclosures in the financial
statements. The key laws and regulations we considered in this
context included the Companies (Guernsey) Law, 2008, the Listing
Rules and relevant tax legislation.
In addition, we considered provisions of other laws and regulations
that do not have a direct effect on the financial statements but
compliance with which may be fundamental to the company’s ability
to operate or to avoid a material penalty. The key laws and regulations
we considered in this context included the Alternative Investment
Fund Managers (“AIFM”) Directive, the AIC Code, Non-Mainstream
Pooled Investments (“NMPI”) regulations.
11.2. Audit response to risks identified
As a result of performing the above, we identified the assessment
of the fair value of investments as a key audit matter related to the
potential risk of fraud. The key audit matters section of our report
explains the matter in more detail and also describes the specific
procedures we performed in response to that key audit matter.
In addition to the above, our procedures to respond to risks identified
included the following:
– reviewing the financial statement disclosures and testing to
supporting documentation to assess compliance with provisions of
relevant laws and regulations described as having a direct effect on
the financial statements;
– enquiring of management and the Audit Committee concerning
actual and potential litigation and claims;
– performing analytical procedures to identify any unusual or
unexpected relationships that may indicate risks of material
misstatement due to fraud;
– reading minutes of meetings of those charged with governance;
and
– in addressing the risk of fraud through management override
of controls, testing the appropriateness of journal entries and
other adjustments; assessing whether the judgements made in
making accounting estimates are indicative of a potential bias; and
evaluating the business rationale of any significant transactions that
are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and
potential fraud risks to all engagement team members including
internal specialists, and remained alert to any indications of fraud or
non-compliance with laws and regulations throughout the audit.
TRIG Annual Report 2024
116
12. Corporate Governance Statement
The Listing Rules require us to review the directors’ statement in relation
to going concern, longer-term viability and that part of the Corporate
Governance Statement relating to the company’s compliance with the
provisions of the AIC Code specified for our review.
Based on the work undertaken as part of our audit, we have
concluded that each of the following elements of the Corporate
Governance Statement is materially consistent with the financial
statements and our knowledge obtained during the audit:
– the directors’ statement with regards to the appropriateness of
adopting the going concern basis of accounting and any material
uncertainties identified set out on page 105;
– the directors’ explanation as to its assessment of the company’s
prospects, the period this assessment covers and why the period
is appropriate set out on page 105;
– the directors’ statement on fair, balanced and understandable
set out on page 107;
– the board’s confirmation that it has carried out a robust
assessment of the emerging and principal risks set out on
page 106;
– the section of the annual report that describes the review of
effectiveness of risk management and internal control systems
set out on page 106; and
– the section describing the work of the Audit Committee set out
on page 96.
13. Matters on which we are required to
report by exception
13.1. Adequacy of explanations received and
accounting records
Under the Companies (Guernsey) Law, 2008 we are required to
report to you if, in our opinion:
– we have not received all the information and explanations we
require for our audit; or
– proper accounting records have not been kept, or
– the financial statements are not in agreement with the
accounting records.
We have nothing to report in respect of these matters.
14. Other matters which we are required
to address
14.1. Auditor tenure
Following the recommendation of the Audit Committee, we were
appointed by the board of directors on 19 September 2013 to audit
the financial statements for the year ending 31 December 2013
and subsequent financial periods. The period of total uninterrupted
engagement including previous renewals and reappointments of the
firm is 12 years, covering the years ending 31 December 2013 to
31 December 2024.
14.2. Consistency of the audit report with the
additional report to the Audit Committee
Our audit opinion is consistent with the additional report to the Audit
Committee we are required to provide in accordance with ISAs (UK).
15. Use of our report
This report is made solely to the company’s members, as a body,
in accordance with Section 262 of the Companies (Guernsey) Law,
2008. Our audit work has been undertaken so that we might state
to the company’s members those matters we are required to state
to them in an auditor’s report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility
to anyone other than the company and the company’s members
as a body, for our audit work, for this report, or for the opinions
we have formed.
Marc Cleeve (Senior statutory auditor)
For and on behalf of Deloitte LLP
Recognised Auditor
Jersey, Channel Islands
24 February 2025
Report on Other Legal and
Regulatory Requirements
FinancialsStrategic Report Governance
TRIG Annual Report 2024
117
Note
Year ended
31 December
2024
£’m
Year ended
31 December
2023
£’m
Net loss on investments 12 (275.6) (146.8)
Interest income from investments 117.2 122.6
Total operating loss (158.4) (24.2)
Fund expenses
6 (2.7) (3.4)
Finance and other income
7 45.9 33.4
(Loss) / profit before tax (115.2) 5.8
Income tax
8 – –
(Loss) / profit after tax
9 (115.2) 5.8
Attributable to:
Equity holders of the parent (115.2) 5.8
(115.2) 5.8
Basic and diluted (loss) / earnings per share (pence)
9 (4.7)p 0.2p
All results are derived from continuing operations. The accompanying Notes are an integral part of these financial statements.
There is no other comprehensive income or expense apart from those disclosed above and consequently a separate statement
ofcomprehensive income has not been prepared.
Company Income Statement
For the year ended 31 December 2024
TRIG Annual Report 2024
118
Company registered number: 11738373
Note
As at
31 December
2024
£’m
As at
31 December
2023
£’m
Non-current assets
Investments at fair value through profit or loss 12 2,800.7 3,140.8
Foreign exchange (FX) forward contracts 16 26.6 8.1
Total non-current assets 2,827.3 3,148.9
Current assets
Other receivables 13 1.1 1.1
FX forward contracts 16 17.5 8.9
Cash and cash equivalents 14 11.7 18.1
Total current assets 30.3 28.1
Total assets 2,857.6 3,177.0
Non-current liabilities
FX forward contracts 16 (0.2) (1.8)
Total non-current liabilities (0.2) (1.8)
Current liabilities
FX forward contracts 16 – (0.1)
Trade and other payables (1.1) (0.8)
Total current liabilities (1.1) (0.9)
Total liabilities (1.3) (2.7)
Net assets 11 2,856.3 3,174.3
Equity
Share capital and share premium 15 2,752.7 2,772.0
Other reserves 15 1.0 1.0
Retained reserves 15 102.6 401.3
Total equity attributable to owners of the parent 11 2,856.3 3,174.3
Net assets per Ordinary Share (pence) 11 115.9p 127.7p
The accompanying Notes are an integral part of these financial statements.
The financial statements were approved and authorised for issue by the Board of Directors on 24 February 2025, and signed on its behalf by:
Director: John Whittle Director: Richard Morse
Company Balance Sheet
As at 31 December 2024
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TRIG Annual Report 2024
119
Share capital and
share premium
£’m
Other reserves
£’m
Retained reserves
£’m
Total equity
£’m
Shareholders’ equity at beginning of year 2,772.0 1.0 401.3 3,174.3
Loss for the year – – (115.2) (115.2)
Dividends paid – – (183.5) (183.5)
Shares repurchased (21.3) – – (21.3)
Ordinary Shares issued in year in lieu of management fees, earned in
H2 2023
1
1.0 (1.0) – –
Ordinary Shares issued in year in lieu of management fees, earned in
H1 2024
2
1.0 – – 1.0
Ordinary Shares to be issued in lieu of management fees, earned in H2 2024
3
– 1.0 – 1.0
Shareholders’ equity at end of year 2,752.7 1.0 102.6 2,856.3
For the year ended 31 December 2023
Share capital and
share premium
£’m
Other reserves
£’m
Retained reserves
£’m
Total equity
£’m
Shareholders’ equity at beginning of year 2,770.0 1.0 571.7 3,342.7
Profit for the year – – 5.8 5.8
Dividends paid – – (176.2) (176.2)
Ordinary Shares issued in year in lieu of management fees,
earned in H2 2022
4
1.0 (1.0) – –
Ordinary Shares issued in year in lieu of management fees,
earned in H1 2023
5
1.0 – – 1.0
Ordinary Shares to be issued in lieu of management fees,
earned in H2 2023
1
– 1.0 – 1.0
Shareholders’ equity at end of year 2,772.0 1.0 401.3 3,174.3
In line with the Investment Management Agreement and the Operations Management Agreement, 20 per cent of the management fees are to
be settled in Ordinary Shares up to an Adjusted Portfolio Value of £1 billion.
1 The £1,008,219 transfer between reserves represents the 818,326 shares that relate to management fees earned in the six months to 31 December 2023 were recognised in other reserves at
31December 2023, and were issued to the Managers during the year, with the balance being transferred to share premium reserve on 28 March 2024.
2 The £994,536 addition to the share premium reserve represents the 800,776 shares that relate to management fees earned in the six months to 30 June 2024 and were issued to the Managers
on 30 September 2024.
3 As at 31 December 2024, 881,732 shares equating to £1,005,464, based on a Net Asset Value ex dividend of 114.0325p per share (the Net Asset Value at 31 December 2024 of 115.9p per share
less the interim dividend of 1.8675p per share) were due but had not been issued. The Company intends to issue these shares to the Managers around 31 March 2025.
4 The £1,008,219 transfer between reserves represents the 758,686 shares that relate to management fees earned in the six months to 31 December 2022 and were recognised in other reserves at
31 December 2022, and were issued to the Managers during the year, with the balance being transferred to share premium reserve on 31 March 2023.
5 The £991,780 addition to the share premium reserve represents the 760,536 shares that relate to management fees earned in the six months to 30 June 2023 and were issued to the Managers on
30 September 2023.
The accompanying Notes are an integral part of these financial statements.
Company Statement of Changes in Shareholders’ Equity
For the year ended 31 December 2024
TRIG Annual Report 2024
120
Note
Year ended
31 December
2024
£’m
Year ended
31 December
2023
£’m
Cash flows from operating activities
(Loss) / profit before tax 9 (115.2) 5.8
Adjustments for:
Net loss on investments 12 275.6 146.8
Investment income from investments (117.2) (122.6)
Realised exchange gains FX forwards 7 16.9 0.7
Finance and other income 7 (45.9) (33.4)
Operating cash flow before changes in working capital 14.2 (2.7)
Changes in working capital:
Increases in receivables – (0.1)
Increases in payables 0.4 0.4
Cash flow from / (used in) operations 14.6 (2.4)
Interest received from investments 12 117.2 134.6
Interest income from cash on deposit 7 0.3 0.7
Net cash from operating activities 132.1 132.9
Cash flows from investing activities
Funding of investments 12 (23.1) (24.6)
Loan stock repayments received 12 87.6 59.5
Net cash from investing activities 64.5 34.9
Cash flows from financing activities
Proceeds from issue of share capital during year 2.0 2.0
Repurchase of shares 15 (20.9) –
Dividends paid to shareholders 10 (183.5) (176.2)
Net cash used in financing activities (202.4) (174.2)
Net decrease in cash and cash equivalents (5.8) (6.3)
Cash and cash equivalents at beginning of year 14 18.1 24.5
Exchange loss on cash (0.6) (0.1)
Cash and cash equivalents at end of year 14 11.7 18.1
The accompanying notes are an integral part of these financial statements.
Company Cash Flow Statement
For the year ended 31 December 2024
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121
Notes to the Financial Statements
1. General information
The Renewables Infrastructure Group Limited (“TRIG” or the
“Company”) is a closed ended investment company incorporated
in Guernsey under Section 20 of the Companies (Guernsey) Law,
2008. The shares are publicly traded on the London Stock Exchange
under a premium listing. Through its subsidiaries, The Renewables
Infrastructure Group (UK) Limited (“TRIG UK”), and The Renewables
Infrastructure Group (UK) Investments Limited (“TRIG UK I”), TRIG
invests in mainly operational renewable energy-generation projects,
predominantly in onshore and offshore wind, solar PV and battery
storage segments, across the UK and Europe. The Company,
TRIG UK, TRIG UK I and its portfolio of investments are known
as the “Group”.
These financial statements are for the year ended 31 December 2024
and comprise only the results of the Company as all of its subsidiaries
are measured at fair value as explained below in Note 2 (a).
2. Key accounting policies
(a) Basis of preparation
The financial statements were approved and authorised for issue by
the Board of Directors on 24 February 2025.
The financial statements, which give a true and fair view, have been
prepared in compliance with the Companies (Guernsey) Law, 2008
and in accordance with International Financial Reporting Standards
(“IFRS”) as adopted by the European Union (“EU”) using the historical
cost basis, except that the financial instruments and investments,
which are classified at fair value through profit or loss, are stated at
their fair values. All accounting policies have been applied consistently
in these financial statements.
The financial statements are presented in pounds Sterling, which is
the Company’s functional currency. Foreign operations are included
in accordance with the policies set out in this Note.
The preparation of financial statements in conformity with IFRS, as
adopted by the EU, requires the Directors to make judgements,
estimates and assumptions that affect the application of policies
and the reported amounts of assets and liabilities, income and
expense. The estimates and associated assumptions are based on
historical experience and various other factors that are believed to
be reasonable under the circumstances, the results of which form
the basis of making the judgements about carrying values of assets
and liabilities that are not readily apparent from other sources. Actual
results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an
ongoing basis. Revisions to accounting estimates are recognised
in the year in which the estimate is revised if the revision affects
only that year, or in the year of the revision and future years if the
revision affects both current and future years. Note 3 shows critical
accounting judgements, estimates and assumptions.
(b) Going concern
The Company has the necessary financial resources to meet its
obligations for at least the next 12 months following the date of this
report. It is more beneficial to consider going concern from the Group
perspective as the Company has access to funding via the revolving
credit facility (“RCF”) which is borne within its subsidiaries as well
as receiving distributions and cash flows from the underlying Group
companies which are passed up to the Company as required as part
of the intercompany funding arrangements.
The Group’s business activities, together with the factors likely to
affect its future development, performance and position, are set out
in the Strategic Report. The financial position of the Group, its cash
flows, liquidity position and borrowing facilities are described in the
Financial Review section of the Strategic Report. In addition, Notes
1 to 4 to the financial statements include the Group’s objectives,
policies and processes for managing its capital; its financial risk
management objectives; details of its financial instruments and
hedging activities; and its exposures to credit risk and liquidity risk.
The Group benefits from a range of long-term contracts with various
major UK and European utilities and well-established suppliers across
a range of infrastructure projects.
On 5 February 2025, the revolving credit facility was renewed and
reduced from £600m to £500m and expires on 31 March 2028. The
RCF includes a £60m working capital component and is limited to
30% of Portfolio Value. At 31 December 2024, the Group was £309m
drawn (2023: £364m), the Group’s leverage was 10% for fund level
financing (2023: 10%). The Group’s project-level financing is non-
recourse to the Company and is limited to 50% of Gross Portfolio
Value. The gearing level is 37% for project-level financing (2023: 37%).
As a consequence, the Directors believe that the Group is well placed
to manage its business risks successfully.
The RCF is also ESG-linked, resulting in a possible increase
or reduction to future interest payments based on the Group’s
performance against KPIs relating to ESG targets over time.
The Group generated resilient cash flows in the year which, along
with proceeds from disposals, enabled the Group to reduce the RCF
balance as well as meeting the investment commitments falling due
in the year.
The Group has sufficient headroom on its RCF covenants. These
covenants have been tested and relate to interest cover ratios
and group gearing limits and the Group does not expect these
covenants to be breached. The Company and its direct subsidiaries
have a number of guarantees, detailed in Note 18 of these financial
statements. These guarantees relate to certain obligations that
may become due by the underlying investments over their useful
economic lives. We do not anticipate these guarantees to be called in
the next 12 months, and in many cases, the potential obligations are
insured by the underlying investments.
In the year ended 31 December 2024, the Group reduced the RCF
outstanding balance by c.£55m. The Group’s cash flows in the year,
along with proceeds from disposals, enabled the Group to reduce the
RCF balance as well as meeting the investment commitments falling
due in the year.
A cash balance of £11.7m at 31 December 2024 (2023: £18.1m) is
held by the Company, with further amounts held in the Company’s
direct and indirect subsidiaries.
Further to the above, the Group has a number of outstanding
commitments which are detailed on page 42 of this Annual Report
and Note 18 of these financial statements. These commitments can
be fully covered by the Group’s RCF.
Operating cash flows are expected to remain healthy in the next few
years as wholesale electricity prices remain relatively strong and
are expected to enable investment commitments to be partially met
by operational cash flows with the balance being funded by RCF
drawdowns and / or divestment proceeds. Further selective asset
disposals are expected in 2025, and the proceeds will be used to
further reduce the outstanding RCF balance which was £309m
drawn at the date of this report.
TRIG Annual Report 2024
122
The Directors have assessed ongoing risks (such as uncertain
inflation levels and interest rates, global conflicts, potential global trade
tariff increases and global supply chain issues) and do not believe
that there is a significant risk to the business as a result of these
uncertainties, and will continue to monitor any future developments.
The Company is affected by climate-related risks, as set out in the
Company’s TCFD reporting on page 68 of this Annual Report, and
the Board consider these when they assess the Company’s ability
to continue as a going concern. The Company continues to assess,
monitor and, where necessary and possible, mitigate and manage
these risks. These risks are not expected to have a material impact in
the next 12 months.
Having performed the assessment of going concern, the Directors
have a reasonable expectation that the Group and therefore the
Company has adequate resources to continue in operational
existence for a period of at least 12 months from the date of these
financial statements. Thus, they adopt the going concern basis of
accounting in preparing the annual financial statements.
This conclusion is based on a review of the Group’s cash flow
projections, including reasonably expected downside sensitivities
together with cash and committed borrowing facilities available to it.
Further detail is provided in the viability statement on page 54.
(c) Basis of consolidation
The Company applies IFRS 10 ‘Consolidated Financial Statements
and, as an investment entity, is required to measure all of its
subsidiaries at fair value. However, subsidiaries that are not
themselves investment entities and provide investment-related
services to the Company should be consolidated. The Company
does not have any such subsidiaries and consequently values
its subsidiaries, at fair value through profit and loss. The financial
statements therefore comprise the results of the Company only.
Subsidiaries are those entities controlled by the Company. The
Company has control of an investee when it has power over the
investee, when it is exposed, or has rights, to variable returns from
its involvement with the investee and has the ability to affect those
returns through its power over the investee as defined in IFRS 10
‘Consolidated Financial Statements’.
The Directors believe it is appropriate and relevant to the investor to
account for the investment portfolio at fair value, where consolidating
it would not be appropriate.
The Company’s subsidiaries, TRIG UK and TRIG UK I, carry out
investment activities and incur overheads and borrowings on behalf
of the Group. The Directors therefore provide an alternative
presentation of the Company’s results in the Strategic Report
on pages 49 to 52 prepared under the ‘Expanded basis’, which
includes the consolidation of TRIG UK and TRIG UK I.
An entity shall consider all facts and circumstances when assessing
whether it is an investment entity, including its purpose and design.
Under the definition of an investment entity, as set out in paragraph
27 in the standard, the entity must satisfy all three of the following tests:
– Obtains funds from one or more investors for the purpose of
providing those investors with investment management services;
and
– Commits to its investors that its business purpose is to invest funds
solely for returns from capital appreciation, investment income, or
both (including having an exit strategy for investments); and
– Measure and evaluate the performance of substantially all of its
investments on a fair value basis.
In respect of the first criterion, TRIG is an investment company which
enables shareholders to gain exposure to a diversified portfolio of
renewable energy and related infrastructure investments coupled with
the management of these investments.
In respect of the second criterion, the Company’s purpose is to invest
funds for returns from capital appreciation and investment income.
The Company’s exit of its investments in project companies may be
at the time the existing turbines or other generation assets get to the
end of their economic lives or planning or leasehold land interests
expire, at which point the project companies may be considering
redevelopment (referred to as a ‘repowering’) of the site. The
Company may remain invested in the event there is the opportunity
to repower and undertake the repowering, subject to its investment
limits on construction activity being met and depending on economic
considerations at the time. The Company may also exit investments
earlier for reasons of portfolio balance or profit as there is an active
secondary market for renewables projects in the countries in which
we operate.
In respect of the third criterion, the Board evaluates the performance
of the assets on a fair market value basis throughout the year as part
of the management accounts review, and the Company undertakes
a fair market valuation of its portfolio twice a year for inclusion in its
report and accounts with the movement in the valuation taken to the
Income Statement and thus measured within its earnings.
Taking these factors into consideration, the Directors are of the
opinion that the Company has all the typical characteristics of an
investment entity and meets the definition in the standard.
(d) Financial instruments
Financial assets and liabilities are recognised on the balance sheet
when the Company becomes a party to the contractual provisions
of the instrument. Financial assets are derecognised when the
contractual rights to the cash flows from the instrument expire or
the asset is transferred, and the transfer qualifies for derecognition
in accordance with IFRS 9 ‘Financial Instruments’. The Company
derecognises financial liabilities when, and only when, the Group’s
obligations are discharged, cancelled or have expired.
Financial derivatives are valued using a mark-to-market valuation
based on the underlying derivative contracts that are executed
with the banks. The movements in mark-to-market valuation are
recognised in the income statement.
Non-derivative financial instruments
Non-derivative financial instruments comprise investments in equity
and debt securities, other receivables, cash and cash equivalents,
and trade and other payables.
Non-derivative financial instruments are recognised initially at fair
value (including directly attributable transaction costs where these
instruments are held at amortised cost). Subsequent to initial
recognition, non-derivative financial instruments are measured at
amortised cost, with the exception of investments in equity and debt
securities which are measured as described below.
Investments in equity and debt securities
Investments in the equity, loan stock and mezzanine debt of entities
engaged in renewable energy activities are designated upon initial
recognition as held at fair value through profit or loss. Gains or losses
resulting from the movement in fair value are recognised in the
Income Statement at each valuation point.
Notes to the Financial Statements continued
FinancialsStrategic Report Governance
TRIG Annual Report 2024
123
Financial assets are recognised / derecognised at fair value at the
date of the purchase / disposal. A financial asset (in whole or part) is
derecognised either:
– When the Group has transferred substantially all of the risk and
rewards of ownership; or
– When it has neither transferred or retained substantially all of the
risks and rewards of ownership but it no longer has control over the
asset or a portion of the asset; or
– When the contractual rights to receive cash flow have expired.
The initial difference between the transaction price and the fair value,
derived from using the discounted cash flows methodology at the date
of acquisition, is recognised only when observable market data indicates
there is a change in a factor that market participants would consider in
setting the price of that investment. For the years ended 31 December
2024 and 31 December 2023, there were no such differences.
The Group manages these investments and makes purchase and
sale decisions based on their fair value.
The Directors consider the equity and loan stock to share the same
investment characteristics and risks and they are therefore treated as
a single unit of account for valuation purposes and a single class for
disclosure purposes.
(e) Impairment
Financial assets
Financial assets, other than those at fair value through profit or loss,
are assessed for expected credit losses (ECLs) at each balance sheet
date to reflect the changes in credit risk since initial recognition of the
respective financial instrument.
The Company recognises lifetime ECL when there has been a
significant increase in credit risk since initial recognition. However, if the
credit risk on the financial instrument has not increased significantly
since initial recognition, the group measures the loss allowance for that
financial instrument at an amount equal to 12-month ECL.
Lifetime ECL represents the expected credit losses that will result
from all possible default events over the expected life of a financial
instrument. In contrast, 12-month ECL represents the portion of
lifetime ECL that is expected to result from default events on a financial
instrument that are possible within 12 months after the reporting date.
(f) Share capital and share premium
Ordinary Shares are classified as equity. Costs directly attributable
to the issue of new shares or associated with the establishment of
the Company that would otherwise have been avoided are written off
against the value of the Ordinary Share premium. Shares repurchased
including broker fees are applied to the Capital reserve.
(g) Cash and cash equivalents
Cash and cash equivalents comprise cash balances, deposits held
on call with banks and other short-term, highly liquid investments with
original maturities of three months or less. Cash equivalents are held
for the purpose of meeting short-term cash commitments rather than
for investment or other purposes.
Bank overdrafts that are repayable on demand, and which form an
integral part of cash management, are included as a component of
cash and cash equivalents for the purpose of the cash flow statement.
(h) Investment income
Income from investments relates solely to returns from the Company’s
subsidiaries TRIG UK and TRIG UK I. Interest is recognised as it accrues
by reference to the principal outstanding on the loan stock and the
effective interest rate applicable and dividends when these are received.
(i) Income tax
Under the current system of taxation in Guernsey, the Company is exempt
from paying taxes on non-Guernsey source income or capital gains.
(j) Foreign exchange gains and losses
Transactions entered into by the Company in a currency other than
its functional currency are recorded at the rates ruling when the
transactions occur. Foreign currency monetary assets and liabilities
are translated at the rates ruling at the balance sheet date. Exchange
differences arising on the retranslation of unsettled monetary assets
and liabilities are recognised immediately in the income statement.
(k) Fund expenses
All expenses are accounted for on an accruals basis. The Company’s
investment management and administration fees (refer to Note 6), finance
costs and all other expenses are charged through the income statement.
(l) Dividends
Dividends are recognised when they become legally payable. In
the case of interim dividends, this is when they are paid. For scrip
dividends, where the Company issues shares with an equal value to
the cash dividend amount as an alternative to the cash dividend, a
credit to equity is recognised when the shares are issued.
(m) Statement of compliance
Pursuant to the Protection of Investors (Bailiwick of Guernsey)
Law, 1987 the Company is a Registered Closed-Ended Investment
Scheme. As an authorised scheme, the Company is subject to
certain ongoing obligations to the Guernsey Financial Services
Commission and meets its compliance requirements.
(n) New and revised standards
There are no new or amended accounting standards or
interpretations adopted during the year that have a significant or
material impact on the financial statements. The Company notes
the following standards and interpretations which were in issue and
effective at the date of these financial statements:
– Amendments to IAS 1: Classification of Liabilities as Current or
Non-current (effective date of 1 January 2024)
– Amendments to IAS 7 and IFRS 7: Supplier Finance Arrangements
(effective date of 1 January 2024)
– Amendments to IFRS 16: Lease Liability in a Sale and Leaseback
(effective date of 1 January 2024)
– Amendments to IA S 1: Non-current Liabilities with Covenants
(effective date of 1 January 2024)
The Company also notes the following standards and interpretations
which were in issue but not effective at the date of these financial
statements. They are not expected to have a material impact on the
Company’s financial statements.
– Amendments to IAS 21: Lack of Exchangeability (effective date
1January 2025)
– Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial
Instruments: Disclosures (effective date of 1 January 2026)
– IFRS 18 Presentation and Disclosure in Financial Statements
(effective date of 1 January 2027)
– IFRS 19 Subsidiaries without Public Accountability: Disclosures
(effective date of 1 January 2027)
TRIG Annual Report 2024
124
3. Critical accounting judgements, estimates
and assumptions
The preparation of financial statements in accordance with IFRS
requires management to make judgements, estimates and
assumptions in certain circumstances that affect reported amounts.
The judgements, estimates and assumptions that have a significant
risk of causing a material adjustment to the carrying amounts of
assets and liabilities within the next financial year are outlined below.
Key source of estimation uncertainty: Investments at
fair value through profit or loss
IFRS 13 establishes a single source of guidance for fair value
measurements and disclosures about fair value measurements. Fair
value is defined as the price that would be received to sell an asset
or paid to transfer a liability in an orderly transaction between market
participants at the measurement date. The Board base the fair value
of the investments on information received from the Investment
Manager. Fair value is calculated on a discounted cash flow basis.
Fair values for those investments for which a market quote is not
available, in this instance being all investments, are determined using
the income approach, which discounts the expected cash flows
at the appropriate rate. In determining the discount rate, relevant
long-term government bond yields, specific risks associated with
the technology (onshore wind, offshore wind, battery storage and
solar) and geographic location of the underlying investment, and the
evidence of recent transactions have all been considered.
The investments at fair value through profit or loss, whose fair values
include the use of level 3 inputs, are valued by discounting future
cash flows from investments in both equity (dividends and equity
redemptions) and subordinated loans (interest and repayments) to the
Group at an appropriate discount rate.
The weighted average discount rate applied in the December 2024
valuation was 8.6% (2023: 8.1%). The discount rate is considered
one of the most significant unobservable inputs and, in addition
to forward-looking power prices and inflation, represents the key
sources of estimation uncertainty that have a significant risk of
causing a material impact on the fair value of the investments at fair
value through profit or loss within the next financial year, which is
further discussed in Note 4 under sensitivities, under the subheadings
discount rates, power price and inflation rates.
The other impacts on the measurement of the fair value of
investments include energy yields, operating costs and other
macroeconomic assumptions which are further discussed in Note
4 under sensitivities, but these are not expected to cause a material
adjustment within the next financial year.
In determining an appropriate valuation, climate change risks
have been considered in the ‘central’ case, including the use of
cannibalisation being applied to the power price assumptions.
On pages 73 and 74 of the TCFD section of this Annual Report,
we have described where the potential valuation impacts of high
transition risk and high physical risk scenarios have been estimated.
However, the degree of uncertainty underpinning these scenarios is
very high and further clarity on the extent to which they are realised
is not expected within the next financial year. In relation to the high
transition risk scenario for instance, the impact on the composition
of the wholesale power price market and wholesale power price
formulation is uncertain and different approaches could lead to different
economic outcomes for electricity generators (e.g. higher renewables
build-out could be incentivised by subsidy and / or higher carbon taxes
which could have different effects on achieved power prices).
Some outcomes would lead to positive and negative valuation
impacts, and the valuation reflected in the financial statements
represents our best estimate, with the more extreme negative and
positive impacts reflected in our TCFD scenarios being considered
less likely. Accordingly, whilst the potential impact of different climate
change scenarios are considered on pages 73 and 74 the ‘central
case’ adopted for the fair value of investments, as described in Note 4,
is considered to represent our best estimate as of 31 December 2024.
In addition, the physical risks associated with climate change have
been considered and it has been concluded that there is no material
impact due to the diversified nature of the portfolio and the insurance
in place over the portfolio
The Investment Manager, when considering the assumptions to apply
to the valuation of the investments at 31 December 2024, considers
several key assumptions.
Key judgements
By virtue of the Company’s status as an investment fund, and in
conjunction with IFRS 10 for investment entities as discussed in
Note 2 (c), investments are designated upon initial recognition to be
accounted for at fair value through profit or loss.
4. Financial instruments
Financial risk management
The objective of the Group’s financial risk management is to
manage and control the risk exposures of its investment portfolio.
The Board of Directors has overall responsibility for overseeing the
management of financial risks; however, the review and management
of financial risks are delegated to the Investment Manager, which
has documented procedures designed to identify, monitor and
manage the financial risks to which the Group is exposed. Note 4
presents information about the Group’s exposure to financial risks, its
objectives, policies and processes for managing risk and the Group’s
management of its financial resources.
Through its subsidiaries, TRIG UK and TRIG UK I, the Company
invests in a portfolio of investments predominantly in the
subordinated loan stock and ordinary equity of renewable energy
project companies. These companies are structured at the outset
to minimise financial risks where possible, and the Investment
Manager primarily focuses their risk management on the direct
financial risks of acquiring and holding the portfolio but continues to
monitor the indirect financial risks of the underlying projects through
representation, where appropriate, on the Boards of the project
companies, and the receipt of regular financial and operational
performance reports.
The Company has a diversified portfolio of assets which include
investments with both higher and lower risks and returns. These
risks and return differences relate, but are not limited to, qualification
to receive government subsidies, exposure to fluctuations in future
energy prices and levels of project finance debt.
Notes to the Financial Statements continued
FinancialsStrategic Report Governance
TRIG Annual Report 2024
125
Interest rate risk
The Group invests in subordinated loan stock of project companies,
usually with fixed interest rate coupons. The portfolio’s cash flows are
continually monitored and reforecast, both over the near future and the
long term, to analyse the cash flow returns from investments. The Group
may use borrowings to finance the acquisition of investments and the
forecasts are used to monitor the impact of changes in borrowing rates
against cash flow returns from investments as increases in borrowing
rates will reduce net interest margins. The Group’s policy is to ensure
that interest rates are sufficiently hedged to protect the Group’s net
interest margins from significant fluctuations when entering into material
medium- / long-term borrowings. This includes engaging in interest rate
swaps or other interest rate derivative contracts.
The Company has an indirect exposure to changes in interest
rates through the revolving credit facility and its investment in project
companies, many of which are financed by senior debt. Senior debt
financing of project companies is generally either through floating
rate debt, fixed-rate bonds or index-linked bonds. Where senior
debt is floating rate, the projects typically have similar length hedging
arrangements in place, which are monitored by the project companies’
managers, finance parties and boards of directors.
The RCF is ESG-linked, resulting in a possible increase or reduction to
future interest payments based on the Group’s performance against
KPIs relating to ESG targets over time. More details can be found in
page 76 of this Annual Report.
Inflation risk
The Group’s project companies are generally structured so that
contractual income and costs are either wholly or partially linked to
specific inflation, where possible, to minimise the risks of mismatch
between income and costs due to movements in inflation indexes.
The Group’s overall cash flows vary with inflation, although they are
not directly correlated as not all flows are indexed. The effects of these
inflation changes do not always immediately flow through to the Group’s
cash flows, particularly where a project’s loan stock debt carries a fixed
coupon and the inflation changes flow through by way of changes
to dividends in future years. Inflation is managed through the use of
inflation-linked swaps where the Group deems it to be appropriate. The
sensitivity of the portfolio valuation is shown further on in Note 4.
Market risk
Returns from the Group’s investments are affected by the price at
which the investments are acquired. The value of these investments
will be a function of the discounted value of their expected future
cash flows, and as such will vary with, inter alia, movements in
interest rates, market prices and the competition for such assets. The
Investment Manager carries out a full valuation semi-annually and this
valuation exercise considers changes described above.
Currency risk
The projects in which the Group invests all conduct their business and
pay interest, dividends and principal in Sterling, with the exception of
the Euro-denominated investments, which at 31 December 2024 was
39% (2023: 41%) of the portfolio by value on a committed basis. The
sensitivity of the portfolio valuation is shown in this Note.
The Group monitors its foreign exchange exposures using its near-term
and long-term cash flow forecasts. Its policy is to use foreign exchange
hedging to provide protection to the level of Sterling distributions that
the Company aims to pay over the medium term, where considered
appropriate. This may involve the use of forward exchange contracts.
Credit risk
Credit risk is the risk that a counterparty of the Group will be unable
or unwilling to meet a commitment that it has entered into with the
Group. Key credit ratings for the Company’s counterparties are
detailed in Note 16.
The credit standing of sub-contractors is reviewed, and the risk
of default estimated for each significant counterparty position.
Monitoring is ongoing, and year-end positions are reported to the
Board on a quarterly basis. The Group’s largest credit risk exposure
to a project at 31 December 2024 was to the Hornsea One project,
representing 10% (2023: Hornsea One project, representing 10%) of
the invested Portfolio Value.
The largest sub-contractor counterparty risk exposure (O&M
or Operations and Maintenance (“O&M”) or Original Equipment
Manufacturers (“OEMs”) whereby the maintenance provider is not
always the original equipment manufacturer) was to Vestas who
provided turbine maintenance services in respect of 23% (2023:
Vestas 22%) of the invested portfolio by value. The largest exposure
to any equipment manufacturer was to Siemens who provided
turbines in respect of 47% of the invested Portfolio Value (2023:
Siemens 47%).
The Group’s investments enter into Power Price Agreements (“PPAs”)
with a range of providers through which electricity is sold; the PPAs
are priced into the fair value of the investments. The largest PPA
provider to the portfolio at 31 December 2024 was Orsted who
provided PPAs to projects in respect of 15% (2023: Orsted 14%) of
the invested Portfolio Value.
At 31 December 2024 and 31 December 2023, impairment provision
for other receivables was considered not material.
The Group’s maximum exposure to credit risk over financial assets
is the carrying value of those assets in the balance sheet. The Group
does not hold any collateral as security.
Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its
financial obligations as they fall due. The Group’s approach to
managing liquidity is to ensure, as far as possible, that it will have
sufficient financial resources and liquidity to meets its liabilities when
due. The Group ensures it maintains adequate reserves, banking
facilities and reserve borrowing facilities by continuously monitoring
forecast and actual cash flows and matching the maturity profiles
of financial assets and liabilities. The Group’s investments are
predominantly funded by share capital and medium-term debt funding.
The Group’s investments are generally in private companies, in which
there is no listed market, and therefore such investment would take
time to realise, and there is no assurance that the valuations placed
on the investments would be achieved from any such sale process.
The Group’s investments have borrowings which rank senior and
have priority over the Group’s own investments into the companies.
This senior debt is structured such that, under normal operating
conditions, it will be repaid within the expected life of the projects.
Debt raised by the investment companies from third parties is without
recourse to the Group.
The Group’s RCF which was £309m drawn at 31 December 2024
(31 December 2023: £364m), is held by TRIG UK and TRIG UK I, and
is guaranteed by the Company. The renewed facility is in place until
March 2028 and contains an option to extend.
TRIG Annual Report 2024
126
Capital management
The Company considers its capital to comprise Ordinary Share
capital, distributable reserves and retained earnings. The Company is
not subject to any externally imposed capital requirements.
The Company’s primary capital management objectives are to ensure
the sustainability of its capital to support continuing operations, meet
its financial obligations and allow for growth opportunities. Generally,
acquisitions and funding commitments are anticipated to be funded
with a combination of current cash, debt and equity.
At the date of this report, the Group has a £500m revolving credit
facility with:
– Royal Bank of Scotland International Limited
– National Australia Bank Limited
– ING Bank N.V
– Barclays Bank PLC
– Lloyds Bank PLC
– Sanpaolo S.P.A.
– BNP Paribas
– Skandinaviska Enskilda Banken AB
– ABN Amro
The facility was reduced in the year from £750m to £600m in April
2024, and was renewed and the facility size reduced to £500m on
5 February 2025, and expires on 31 March 2028 with the option
to extend for a further two years. The facility was £309.2m (2023:
£364.2m) drawn at 31 December 2024 and has been included in the
fair value of investments.
The Group makes prudent use of its leverage. Under the investment
policy, borrowings are limited to 30% of the Portfolio Value.
From time to time, the Company issues its own shares to the market;
the timing of these purchases depends on market prices.
In order to assist in the narrowing of any discount to the Net Asset
Value at which the Ordinary Shares may trade, from time to time the
Company may at the sole discretion of the Directors:
– Make market purchases of up to 14.99% per annum of its issued
Ordinary Shares; and
– Make tender offers for the Ordinary Shares.
There were no changes in the Group’s approach to capital
management during the year.
Fair value estimation
The following summarises the significant methods and assumptions
used in estimating the fair values of financial instruments:
Non-derivative financial instruments
The fair value of financial instruments that are not traded in an active
market is determined by using valuation techniques. The Group uses
the income approach, which discounts the expected cash flows
attributable to each asset at an appropriate rate to arrive at fair values.
In determining the discount rate, regard is had to relevant long-term
government bond yields, the specific risks of each investment and the
evidence of recent transactions.
Derivative financial instruments
The fair value of financial instruments inputs is based on quoted
market prices at the balance sheet date. The quoted market price
used as an input to calculate the fair value of financial assets and
financial liabilities held by the Group is the current bid price. Note 2
discloses the methods used in determining fair values.
Notes to the Financial Statements continued
FinancialsStrategic Report Governance
TRIG Annual Report 2024
127
Classification of financial instruments
31 December
2024
£’m
31 December
2023
£’m
Financial assets
At fair value through profit or loss:
Investments 2,800.7 3,140.8
FX forward contracts 44.1 17.0
Financial assets at fair value 2,844.8 3,157.8
At amortised cost:
Other receivables 1.1 1.1
Cash and cash equivalents 11.7 18.1
Financial assets at amortised cost 12.8 19.2
Financial liabilities
At fair value through profit or loss:
FX forward contracts 0.2 1.9
Financial liabilities at fair value 0.2 1.9
At amortised cost:
Trade and other payables 1.1 0.8
Financial liabilities at amortised cost 1.1 0.8
The Directors believe that the carrying values of all financial instruments are not materially different to their fair values.
The fair value of FX forward contracts is discussed in more detail in Note 16 of these financial statements.
TRIG Annual Report 2024
128
Fair value hierarchy
The fair value hierarchy is defined as follows:
– Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities
– Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or
indirectly (i.e. derived from prices)
– Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs)
As at 31 December 2024
Level 1
£’m
Level 2
£’m
Level 3
£’m
Tota l
£’m
Investments at fair value through profit or loss – – 2,800.7 2,800.7
– – 2,800.7 2,800.7
FX forward contracts – assets – 44.1 – 44.1
FX forward contracts – liabilities – (0.2) – (0.2)
– 43.9 – 43.9
As at 31 December 2023
Level 1
£’m
Level 2
£’m
Level 3
£’m
Total
£’m
Investments at fair value through profit or loss – – 3,140.8 3,140.8
– – 3,140.8 3,140.8
FX forward contracts – assets – 17.0 – 17.0
FX forward contracts – liabilities – (1.9) – (1.9)
– 15.1 – 15.1
Investments at fair value through profit or loss comprise the fair value of the investment portfolio on which the sensitivity analysis is calculated,
and the fair value of TRIG UK and TRIG UK I, the Company’s subsidiaries being its cash, working capital and debt balances.
31 December
2024
£’m
31 December
2023
£’m
Portfolio Value 3,115.6 3,509.1
TRIG UK and TRIG UK I
Cash 0.1 0.3
Working capital (8.0) (8.9)
Debt
1
(307.0) (359.7)
(314.9) (368.3)
Investments at fair value through profit or loss 2,800.7 3,140.8
1 Debt arrangement costs of £2.2m (2023: £4.5m) have been netted off the £309.2m (2023: £364.2m) debt drawn by TRIG UK and TRIG UK I.
The debt figure of £307.0m above is held in TRIG UK and TRIG UK I, the Company’s subsidiaries, and represents the RCF (less debt
arrangement costs). The RCF is included within the fair value of the Company’s subsidiaries.
Notes to the Financial Statements continued
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TRIG Annual Report 2024
129
Level 2
Valuation methodology
The Company has derivative hedging instruments in place to manage the currency risk that its underlying Euro investments are exposed to. The
fair value of the hedging instruments is valued by an independent third party and is based on price quotations from financial institutions active in
the relevant market. The key inputs to the discounted cash flow methodology used to derive fair value include foreign currency exchange rates
and foreign currency forward curves. Valuations are performed on at least a six-monthly basis every June and December for all financial assets
and all financial liabilities.
Level 3
Valuation methodology
The Investment Manager has carried out fair market valuations of the investments as at 31 December 2024 and the Directors have satisfied
themselves as to the methodology used, the discount rates and key assumptions applied, and the valuation. All investments are at fair value
through profit or loss and are valued using a discounted cash flow methodology.
The fair value of investments has been calculated using a bifurcated methodology whereby cash flows are discounted on the basis of the risk
and return profile of the underlying cash flows. Further information on the valuation process can be found in the Valuation of Portfolio section on
page 38.
The following economic assumptions were used in the discounted cash flow valuations at:
31 December 2024 31 December 2023
Inflation assumed as measured by the UK Retail
Prices Index (applies to UK Renewable Obligation
Certificate (“ROC”) Income)*
Actual inflation applied to Dec-24, 3.25%
until 2029, 2.50% thereafter
Actual inflation applied to Nov-23, 5.00%
(Dec-23), 3.50% (2024), 3.25% until 2030,
2.50% thereafter
Inflation assumed as measured by the UK
Consumer Prices Index (applies to UK Contracts
for Difference (“CfD”) Income)*
Actual inflation applied to Dec-24, 2.50%
thereafter
Actual inflation applied to Nov-23, 3.90%
(Dec-23), 2.75% (2024), 2.50% thereafter
Inflation assumed to apply to UK Power Prices* Actual inflation applied to Dec-24, 3.25%
until 2029, 2.50% thereafter
Actual inflation applied to Nov-23, 5.00%
(Dec-23), 3.50% (2024),
3.25% until 2030, 2.50% thereafter
Inflation assumed to apply in Ireland, France,
Sweden, Germany and Spain*
Actual inflation applied to Dec-24, 2.00%
thereafter
Actual inflation applied to Nov-23, 3.00%
(Dec-23), 2.75% (2024), 2.00% thereafter
UK deposit interest rates 4.00% to 2024, 3.25% thereafter 3.50% to 2024, 3.25% thereafter
Ireland, France, Sweden, Germany and Spain
deposit interest rates
2.50%% to 2024, 2.00% thereafter 3.00%% to 2024, 2.25% thereafter
UK corporation tax rate 25% 25%
Ireland corporation tax rate 12.5% active rate, 25% passive rate 12.5% active rate, 25% passive rate
France corporation tax rate 25% 25%
Sweden corporation tax rate 20.6% 20.6%
Germany corporation tax rate 15.8% 15.8%
Spain corporation tax rate 25% 25%
Euro / Sterling exchange rate 1.2085 1.1535
Energy yield assumptions P50 case P50 case
* The stated inflation assumption applies the stated (annualised) rate on a monthly basis to the previous month’s index.
The table below highlights the power price averages for GB and the EU markets:
Forecast Prices by Region (real 2023)* Average 2025-2029 Average 2030-2034 Average 2035-2050
Great Britain (GBP per MWh) 62 55 51
Average of four Euro-denominated markets (EUR per MWh) 57 60 57
* The average forecast price for 2051-2060 is 48 GBP per MWh in Great Britain and 53 EUR per MWh in Europe.
A blended curve is provided on page 39 of the Valuation of the Portfolio section.
TRIG Annual Report 2024
130
As identified in the Investment Report section on page 28, during the period legislation was applicable within each of the jurisdictions in which
the Group was invested, impacting revenues received at elevated prices, and, where highlighted, impacting future projections.
Within the UK the Electricity Generator Levy (“EGL”) has effect to 31 March 2028 and applies a levy of 45% (which is not deductible for
corporation tax, resulting in an effective tax rate (when considering levy and tax) of 70%) to revenues received for the sale of wholesale above
a threshold level. The threshold level for revenues is £75 per MWh (indexed by the Consumer Prices Index on 1 April each year from 2024) plus
a £10m per annum per group allowance (with the UK assets the Group holds considered one group). The EGL has been reflected within the
valuation and the valuation sensitivities for the legislated period (beyond which the prices assumed would be below the threshold level), though
the effect on future periods is negligible.
The European Union extended the inframarginal cap framework into 2024, under which each of the national governments can introduce
legislation within specified parameters. This sought to apply a tax in respect of revenues received in excess of a threshold price (typically the
applicable tax rate is between 90% and 100%). The threshold price is determined by the national governments and can vary by technology.
In general, the legislation as enacted is for a relatively limited duration with an expectation that this would be extended as required – as such the
valuation and sensitivities assume that the legislation will apply until the prices decline below the applicable threshold level, with the threshold
level expected to remain constant in real terms. The EU legislation remains to enable national governments to reapply the inframarginal caps;
however, only France had extended from their initial term. There are no regions where the current forecast exceeds the price at which the cap
has previously been applied.
A summary of the intervention measures is included within the table below:
Tax measure Market Applies above Effective rate applicable Reliefs Legislated period
Electricity generator levy UK £75/MWh indexed
by CPI
70%
(45% levy + 25%
corporate tax)
First £10m p.a.
per group
1 Jan 2023 to
31 Mar 2028
Inframarginal cap revenue France EUR 105/MWh 50% Excludes FiTs
and Contracts for
Difference (“CfDs”)
1 Jul 2022 to
31 Dec 2024
Germany Feed-in Tariff (“FiT”)
+ EUR 30/MWh
90% Allowance for Power
Price Agreement
(“PPA”) costs
Expired
Sweden EUR 180/MWh 90% None stated Expired
Gas clawback Spain and
Portugal
A calculated level
based on assumed
gas price
85% Formula includes an
allowance
to reflect
some costs
Expired
Valuation sensitivities
Sensitivity analysis is produced to show the impact of changes in key assumptions adopted to arrive at the valuation. For each of the
sensitivities, it is assumed that potential changes occur independently of each other with no effect on any other base case assumption, and that
the number of investments in the portfolio remains static throughout the modelled life.
The sensitivities assume the portfolio is fully invested and hence the Portfolio Value for the sensitivity analysis is the sum of the Portfolio
Valuation at 31 December 2024 and the outstanding investment commitments less the stake of Gode held for sale with contracts exchanged in
aggregate (£3,126.0m).
Accordingly, the Net Asset Value (“NAV”) per share impacts shown below assume the issue of further shares to fund these commitments. In
practice, the outstanding commitments may be funded by surplus cash flows and / or proceeds from disposals. If investments disposed are of
a similar nature and sensitivity to the portfolio average, this would be expected to yield a similar sensitivity to that presented above.
Notes to the Financial Statements continued
FinancialsStrategic Report Governance
TRIG Annual Report 2024
131
The analysis below shows the sensitivity of the Portfolio Value (and its impact on NAV) to changes in key assumptions as follows:
Discount rates
The discount rates used for valuing each investment are based on market information and the current bidding experience of the Group
and its Managers.
The weighted average valuation discount rate applied to calculate the portfolio valuation is 8.6% at 31 December 2024 (2023: 8.1%). An increase
or decrease in this rate by 0.5% has the following effect on valuation.
Discount rate NAV / share impact -0.5% change Total Portfolio Value +0.5% change NAV / share impact
Directors’ valuation – December 2024 +3.9p +£107.3m £3,126.0m (£100.2m) (3.7p)
Directors’ valuation – December 2023 +4.4p +£125.4m £3,640.4m (£117.1m) (4.1p)
Power price
The sensitivity considers a flat 10% movement in power prices for all years, i.e. the effect of adjusting the forecast electricity price assumptions
in each of the jurisdictions applicable to the portfolio down by 10% and up by 10% from the base case assumptions for each year throughout
the operating life of the portfolio.
The EGL and other similar legislation across each jurisdiction still in place have threshold prices sufficiently high that they do not impact the
sensitivities shown below. The impact of these legislative interventions in the prior year was minimal.
A change in the forecast electricity price assumptions by plus or minus 10% has the following effect:
Power price NAV / share impact -10% change
Total Portfolio
Value +10% change NAV / share impact
Directors’ valuation – Dec 2024 (7.5p) (£204.4m) £3,126.0m +£202.6m +7.4p
Directors’ valuation – Dec 2023 (8.3p) (£236.4m) £3,640.4m +£242.2m +8.5p
Energy yield
The base case assumes a ‘P50’ level of output. The P50 output is the estimated annual amount of electricity generation (in MWh) that has a
50% probability of being exceeded – both in any single year and over the long term – and a 50% probability of being underachieved. Hence the
P50 is the expected level of generation over the long term.
The sensitivity illustrates the effect of assuming ‘P90 ten-year’ (a downside case) and ‘P10 ten-year’ (an upside case) energy production
scenarios. A P90 ten-year downside case assumes the average annual level of electricity generation that has a 90% probability of being
exceeded over a ten-year period. A P10 ten-year upside case assumes the average annual level of electricity generation that has a 10%
probability of being exceeded over a ten-year period. This means that the portfolio aggregate production outcome for any given 10-year period
would be expected to fall somewhere between these P90 and P10 levels with an 80% confidence level, with a 10% probability of it falling below
that range of outcomes and a 10% probability of it exceeding that range. The sensitivity includes the portfolio effect which reduces the variability
because of the diversification of the portfolio. The sensitivity is applied throughout the life of each asset in the portfolio (even where this exceeds
ten years).
The sensitivity is not impacted by EGL and other similar legislation across each jurisdiction in the current period and the previous year
sensitivities were minimally impacted.
The table below shows the sensitivity of the Portfolio Value to changes in the energy yield applied to cash flows from project companies in the
portfolio as per the terms P90, P50 and P10 explained above.
Energy yield NAV / share impact
P90 ten-year
exceedance Total Portfolio Value
P10 ten-year
exceedance NAV / share impact
Directors’ valuation – Dec 2024 (14.4p) (£395.0m) £3,126.0m +£425.3m +15.5p
Directors’ valuation – Dec 2023 (15.3p) (£437.6m) £3,640.4m +£488.7m +17.1p
TRIG Annual Report 2024
132
Inflation rates
The projects’ income streams are principally a mix of subsidies, which are amended each year with inflation, and power prices, which the
sensitivity assumes will move with inflation. The projects’ management, maintenance and tax expenses typically move with inflation, but debt
payments are fixed. This results in the portfolio returns and valuation being positively correlated to inflation.
The assumptions for inflation incorporated in the portfolio valuation are stated below. The differences in forecast result from differences in
market, in the calculation methodology of the index or in the basket of goods considered within the index or specific good in the case of UK
power prices. The sensitivity is applied to all forecast inflation assumptions (actual inflation assumptions remain unchanged).
31 December 2024 31 December 2023
Inflation assumed as measured by the UK Retail
Prices Index (applies to UK ROC Income)
Actual inflation applied to Dec-24, 3.25%
until 2029, 2.50% thereafter
Actual inflation applied to Nov-23, 5.00%
(Dec-23), 3.50% (2024), 3.25% until 2030,
2.50% thereafter
Inflation assumed as measured by
the UK Consumer Prices Index
(applies to UK CfD Income)
Actual inflation applied to Dec-24, 2.50%
thereafter
Actual inflation applied to Nov-23, 3.90%
(Dec-23), 2.75% (2024), 2.50% thereafter
Inflation assumed to apply to UK Power Prices Actual inflation applied to Dec-24, 3.25%
until 2029, 2.50% thereafter
Actual inflation applied to Nov-23, 5.00%
(Dec-23), 3.50% (2024),
Inflation measured by national Consumer Price
Indices assumed to apply in Ireland, France,
Sweden, Germany and Spain
Actual inflation applied to Dec-24, 2.00%
thereafter
Actual inflation applied to Nov-23, 3.00%
(Dec-23), 2.75% (2024), 2.00% thereafter
The sensitivity illustrates the effect of a 0.5% decrease and a 0.5% increase from all of the assumed annual inflation rates as stated above in the
financial model for each year throughout the operating life of the portfolio.
The sensitivity is not impacted by EGL and other similar legislation across each jurisdiction in the current period and the previous year
sensitivities were minimally impacted.
Inflation assumption NAV / share impact -0.5% change Total Portfolio Value +0.5% change NAV / share impact
Directors’ valuation – December 2024 (4.5p) (£122.1m) £3,126.0m +£144.4m +5.3p
Directors’ valuation – December 2023 (5.1p) (£147.4m) £3,640.4m +£177.5m +6.2p
Operating costs
The sensitivity shows the effect of a 10% decrease and a 10% increase to the base case for annual operating costs for the portfolio, in each
case assuming that the change to the base case for operating costs occurs with effect from 1 January 2025 and that change to the base case
remains reflected consistently thereafter during the life of the projects.
Operating costs NAV / share impact -10% change Total Portfolio Value +10% change NAV / share impact
Directors’ valuation – December 2024 +5.1p +£138.5m £3,126.0m (£139.3m) (5.1p)
Directors’ valuation – December 2023 +5.2p +£149.3m £3,640.4m (£148.2m) (5.2p)
Taxation rates
The profits of each project company are subject to corporation tax in their home jurisdictions at the applicable rates (the tax rates adopted in
the valuation are set out in Note 4 to the financial statements). The tax sensitivity looks at the effect on the Directors’ valuation of changing the
tax rates by +/- 2% each year in each jurisdiction and is provided to show that tax can be a material variable in the valuation of investments. The
sensitivities incorporate the impact of portfolio-level reliefs.
Taxation rates NAV / share impact -2% change Total Portfolio Value +2% change NAV / share impact
Directors’ valuation – December 2024 +1.7p +£47.2m £3,126.0m (£47.3m) (1.7p)
Directors’ valuation – December 2023 +1.9p +£53.2m £3,640.4m (£43.6m) (1.5p)
Notes to the Financial Statements continued
FinancialsStrategic Report Governance
TRIG Annual Report 2024
133
Interest rates
This shows the sensitivity of the portfolio valuation to the effects of a reduction of 2% and an increase of 2% in interest rates. The change is
assumed with effect from 1 January 2025 and continues unchanged throughout the life of the assets.
The portfolio is relatively insensitive to changes in interest rates. This is an advantage of TRIG’s approach of favouring long-term structured
project financing (over shorter-term corporate debt) which is secured with the substantial majority of this debt having the benefit of long-term
interest rate swaps which fix the interest cost to the projects.
Interest rates NAV / share impact -2% change Total Portfolio Value +2% change NAV / share impact
Directors’ valuation – December 2024 (0.1p) (£3.7m) £3,126.0m +£7.3m +0.3p
Directors’ valuation – December 2023 (0.1p) (£3.4m) £3,640.4m +£10.6m +0.4p
Currency rates
The sensitivity shows the effect of a 10% decrease (Euro weakens relative to Sterling) and a 10% increase (Euro strengthens relative to Sterling)
in the value of the Euro relative to Sterling used for the 31 December 2024 valuation (based on a 31 December 2024 exchange rate of €1.2085
to £1). In each case it is assumed that the change in exchange rate occurs from 1 January 2025 and thereafter remains constant at the new
level throughout the life of the projects.
At the year end, 39% of the committed portfolio was located in Sweden, France, Germany and Spain comprising Euro-denominated assets.
The Group has entered into forward hedging of the expected Euro distributions for up to 48 months ahead and in addition placed further
hedges to reach a position where around 80% of the valuation of Euro-denominated assets is hedged. The hedge reduces the sensitivity of the
Portfolio Value to foreign exchange movements and accordingly the impact is shown net of the benefit of the foreign exchange hedge in place.
The value of the outstanding commitments on the battery projects is included in this sensitivity. A 80% hedge is assumed for the sensitivity
below which reflects the typical hedge levels.
Currency rates NAV / share impact -10% change Total Portfolio Value +10% change NAV / share impact
Directors’ valuation – December 2024 (0.9p) (£23.5m) £3,126.0m +£23.5m +0.9p
Directors’ valuation – December 2023 (1.2p) (£34.9m) £3,640.4m +£34.9m +1.2p
The Euro/Sterling exchange rate sensitivity does not attempt to illustrate the indirect influences of currencies on UK power prices which are
interrelated with other influences on power prices.
Asset lives
Assumptions adopted in the year-end valuation typically range from 25 to 40 years from the date of commissioning, with an average 31 years for
the wind portfolio, 40 years for the solar portfolio and 20 years for the battery portfolio. The overall average across the portfolio at 31 December
2024 is 30 years (31 December 2023: 31 years).
The sensitivity below shows the impact on the valuation of assuming all assets within the portfolio have a year longer and a year shorter asset
life assumed.
Asset Lives NAV / share impact -1 year change Total Portfolio Value +1 year change NAV / share impact
Directors’ valuation – December 2024 (1.3p) (£36.2m) £3,126.0m +£34.4m +1.3p
Directors’ valuation – December 2023 (1.2p) (£33.2m) £3,640.4m +£30.2m +1.1p
TRIG Annual Report 2024
134
5. Segment reporting
The Chief Operating Decision Maker (the “CODM”) is of the opinion that the Group is engaged in a single segment of business, being
investment in renewable infrastructure to generate investment returns while preserving capital. The financial information used by the CODM to
allocate resources and manage the Group presents the business as a single segment comprising a homogeneous portfolio.
6. Fund expenses
For year ended
31 December
2024
£’m
For year ended
31 December
2023
£’m
Fees payable to the Company’s Auditor:
For audit of the Company’s financial statements 0.3 0.3
For the other audit-related assurance services 0.1 0.1
For additional fees in respect to the prior period – 0.1
Investment and management fees (Note 17) 0.2 0.2
Directors’ fees (Note 17) 0.4 0.4
Other costs 1.7 2.3
Fund expenses 2.7 3.4
On the Expanded basis, fund expenses are £31,914k (2023: £35,628k); the difference being the costs incurred within TRIG UK and TRIG UK
I, the Company’s subsidiaries. The reconciliation from the IFRS basis to the Expanded basis is shown in the Financial Review of the Strategic
Report on page 48.
The fees to the Company’s Auditor for the audit of the Company’s 2024 financial statements were £283k (2023: £263k).
Additional fees paid in the year relating to the prior period audit of the Company’s subsidiaries TRIG UK and TRIG UK I and unconsolidated
project subsidiaries were £41k (2023: £79k).
The fees to the Company’s Auditor include £74k (2023: £71k) payable in relation to audit-related assurance services in respect of the interim
review of the half yearly financial statements and £15k in respect of agreed upon procedures over certain ESG metrics.
In addition to the above, £767k (2023: £744k) was paid to Deloitte LLP (the Company’s auditor) in respect of audit services provided in the year
relating to full year 2024 accounts and £9k (2023: £9k) of minor other services to unconsolidated subsidiaries.
Investment and management fees paid in the year were £200k (2023: £200k) and Directors’ fees paid in the year were £368k (2023: £355k) and
are both discussed further in Note 17.
Other costs relate to the operations of the fund.
The Company had no employees during the current or prior year. The Company has appointed the Investment Manager and the Operations
Manager to manage the portfolio, the Company and its subsidiaries, on its behalf.
Notes to the Financial Statements continued
FinancialsStrategic Report Governance
TRIG Annual Report 2024
135
7. Finance and other income
For year ended
31 December
2024
£’m
For year ended
31 December
2023
£’m
Interest income:
Interest on bank deposits 0.3 0.7
Total finance income 0.3 0.7
Gain on foreign exchange:
Realised gains on settlement of FX forwards 16.9 0.7
Fair value gain of FX forward contracts 28.9 31.9
Other foreign exchange (losses) / gains (0.2) 0.1
Total gain on foreign exchange 45.6 32.7
Finance and other income 45.9 33.4
On the Expanded basis, finance income is £0.3m (2023: £0.7m) and finance costs are £25.6m (2023: £29.4m); the difference being the Group’s
credit facility costs which are incurred within TRIG UK and TRIG UK I, the Company’s subsidiaries. These costs are shown in the Financial
Review of the Strategic Report on page 49.
The gain on foreign exchange on the Expanded basis is £53.6m (2023: £34.8m loss). The reconciliation from the Statutory IFRS basis to the
Expanded basis, which includes an FX movement within TRIG UK and TRIG UK I, the Company’s subsidiaries, is shown in the Financial Review
section on page 49.
8. Income tax
Under the current system of taxation in Guernsey, the Company is exempt from paying taxes on income, profits or capital gains. Therefore,
income from investments is not subject to any further tax in Guernsey, although these investments will bear tax in the individual jurisdictions in
which they operate.
The Pillar Two Legislation does not have any impact on the Group as it did not exceed the turnover threshold of €750m.
9. Earnings per share
Earnings per share (“EPS”) is calculated by dividing the (loss) / profit attributable to equity shareholders of the Company by the weighted
average number of Ordinary Shares in issue during the year. There are no potential Ordinary Shares that have a dilutive effect on EPS and
therefore the diluted EPS is the same as basic EPS.
31 December
2024
31 December
2023
(Loss) / profit attributable to equity holders of the Company (£’m) (115.2) 5.8
Weighted average number of Ordinary Shares in issue (‘m) 2,475.1 2,483.6
(Loss) / earnings per Ordinary Share (Pence) (4.7)p 0.2p
Further details of shares issued in the year are set out in Note 15.
TRIG Annual Report 2024
136
10. Dividends
31 December
2024
£’m
31 December
2023
£’m
Amounts recognised as distributions to equity holders during the year:
Interim dividend for the quarter ended 31 December 2022 of 1.71p 42.5
Interim dividend for the quarter ended 31 March 2023 of 1.795p 44.5
Interim dividend for the quarter ended 30 June 2023 of 1.795p 44.6
Interim dividend for the quarter ended 30 September 2023 of 1.795p 44.6
Interim dividend for the quarter ended 31 December 2023 of 1.795p 44.6
Interim dividend for the quarter ended 31 March 2024 of 1.8675p 46.4
Interim dividend for the quarter ended 30 June 2024 of 1.8675p 46.4
Interim dividend for the quarter ended 30 September 2024 of 1.8675p 46.1
183.5 176.2
Dividends settled as a scrip dividend alternative – –
Dividends settled in cash 183.5 176.2
183.5 176.2
On 6 February 2025, the Company declared an interim dividend of 1.8675p per share for the period 1 October 2024 to 31 December 2024.
The total dividend, £45,808,717, payable on 31 March 2025, is based on a record date of 14 February 2025 and the number of shares in issue
at that time being 2,452,943,326.
11. Net assets per Ordinary Share
31 December
2024
31 December
2023
Shareholders’ equity at balance sheet date (‘m) £2,856.3 £3,174.3
Number of shares at balance sheet date, including management shares accrued but not yet issued (‘m) 2,464.8 2,485.1
Net Assets per Ordinary Share at balance sheet date (Pence) 115.9p 127.7p
In line with the Investment Management Agreement and the Operations Management Agreement, 20 per cent of the management fees are to
be settled in Ordinary Shares up to an Adjusted Portfolio Value of £1 billion.
Shares are issued to the Investment Manager and the Operations Manager twice a year in arrears, usually in March and September for the half
year ending December and June, respectively.
As at 31 December 2024, 881,732 shares equating to £1,005,464, based on a Net Asset Value ex dividend of 114.0325p per share (the Net
Asset Value at 31 December 2024 of 115.9p per share less the interim dividend of 1.8675p per share) were due but had not been issued. The
Company intends to issue these shares around 31 March 2025.
In view of this, the denominator in the above Net assets per Ordinary Share calculation is as follows:
31 December
2024
’m
31 December
2023
’m
Ordinary Shares in issue at balance sheet date 2,463.9 2,484.3
Number of shares to be issued in lieu of Management fees 0.9 0.8
Total number of shares used in Net Assets per Ordinary Share calculation 2,464.8 2,485.1
Notes to the Financial Statements continued
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TRIG Annual Report 2024
137
12. Investments at fair value through profit or loss
Investments at fair value through profit or loss is the sum of the portfolio valuation and the carrying amount of TRIG UK and TRIG UK I, the
Company’s subsidiaries.
31 December
2024
£’m
31 December
2023
£’m
Brought forward 3,140.8 3,322.6
Investments in the year 23.1 24.6
Loan principal repayment to the Company (87.6) (59.5)
Loss on valuation (275.6) (146.8)
Carried forward
1
2,800.7 3,140.8
1 Balance does not cast due to rounding.
The following information in this Note is non-statutory. It provides additional information to users of the financial statements, splitting the fair
value movements between the investment portfolio and TRIG UK and TRIG UK I, the Company’s subsidiaries.
31 December
2024
£’m
31 December
2023
£’m
Fair value of investment portfolio
Brought forward value of investment portfolio 3,509.1 3,737.0
Investments in the year 48.3 91.7
Divestments in the year (103.9) (21.5)
Distributions paid to TRIG UK & TRIG UK I (226.8) (333.7)
Interest income 123.1 100.0
Dividend income 88.3 175.8
(Loss) / gain on valuation (322.5) (240.2)
Carried forward value of investment portfolio
2
3,115.6 3,509.1
Fair value of TRIG UK & TRIG UK I
Brought forward value of TRIG UK & TRIG UK I (368.2) (414.4)
Cash movement (0.2) (0.5)
Working capital movement 0.8 9.4
Debt movement
1
52.7 37.2
Carried forward value of TRIG UK & TRIG UK I (314.9) (368.3)
Total investments at fair value through profit or loss
2
2,800.7 3,140.8
1 Debt arrangement costs of £2.2m (2023: £4.5m) have been netted off the £309.2m (2023: £364.2m) debt drawn by TRIG UK and TRIG UK I.
2 Balance does not cast due to rounding.
The (losses) / gains on investment valuation are unrealised.
The Special Purpose Vehicles (“SPVs”) (project companies) in which the Company invests are generally restricted on their ability to transfer
funds to the Company under the terms of their individual senior funding arrangements. Significant restrictions include:
– Historic and projected debt service and loan life cover ratios exceed a given threshold
– Required cash reserve account levels are met
– Senior lenders have agreed the current financial model that forecasts the economic performance of the project company
– The project company is in compliance with the terms of its senior funding arrangements
– Senior lenders have approved the annual budget for the Company
TRIG Annual Report 2024
138
On 22 March 2024, the Group sold 100% of its equity interests in Forss and Little Raith onshore wind farms in the UK for a total consideration of
£51m. The sale was at a 4% premium to the valuation of the wind farms as at 31 December 2023.
On 23 August 2024, the Group sold 100% equity interest in Pallas, an onshore wind farm located in the Republic of Ireland, for a consideration
of €62m representing a 15% premium to the valuation of the wind farms at 31 December 2023, adjusted for cash distributions received since 31
December 2023.
On 1 August 2024, the Group announced the sale of a 15.2% equity interest in Gode, an offshore wind farm located in Germany for a
consideration of €100m to funds managed by Equitix Investment Management Ltd. The sale was at a 9% premium to the valuation of the wind
farm as at 31 December 2023. The Company will continue to own a 9.8% stake in the wind farm. It is expected that proceeds will be received in
early March 2025 from the sale of a 15.2% stake in Gode offshore wind farm, which was announced 1 August 2024, and upon receipt the RCF
balance will reduce to c. £230m.
In February 2024, TRIG acquired 100% of Fig Power; the expected outlay over 2024 and 2025 was c. £20m – approximately half for the upfront
consideration and half relating to ongoing development expenditure. TRIG also made additional investments totalling £36.4m in Ranasjö and
Salsjö wind farms and the battery projects to fund their respective construction programmes, in line with outstanding commitments.
13. Other receivables
31 December
2024
£’m
31 December
2023
£’m
Management fee receivable 1.0 1.0
Prepayments 0.1 0.1
Loan interest receivable – –
Total other receivables 1.1 1.1
As at 31 December 2024, no expected credit losses have been recognised against Other receivables as they are negligible (2023: nil). For more
information on the balances, refer to Note 17 of these financial statements.
14. Cash and cash equivalents
31 December
2024
£’m
31 December
2023
£’m
Bank balances 11.7 18.1
Cash and cash equivalents 11.7 18.1
On the Expanded basis, which includes balances carried in TRIG UK and TRIG UK I, cash is £11.8m (2023: £18.4m). The reconciliation from the
IFRS basis to the Expanded basis is shown in the Strategic Report on page 52.
As at the year end, cash and cash equivalents on the Expanded basis consisted of £11.8m (2023: £18.4m ) held with Royal Bank of Scotland
International Limited.
At 31 December 2024, Royal Bank of Scotland International Limited had an S&P credit rating of A Stable (2023: A Stable).
Notes to the Financial Statements continued
FinancialsStrategic Report Governance
TRIG Annual Report 2024
139
15. Share capital and reserves
Ordinary Shares
31 December
2024
’m
Ordinary Shares
31 December
2023
’m
Opening balance 2,484.3 2,482.8
Issued for cash – –
Shares repurchased (22.1) –
Issued as a scrip dividend alternative – –
Issued in lieu of management fees 1.6 1.5
Issued at 31 December – fully paid
1
2,463.9 2,484.3
1 Balance does not cast due to rounding.
The holders of the 2,463,893,326 (2023: 2,484,343,784) Ordinary Shares are entitled to receive dividends as declared from time to time and
are entitled to one vote per share at meetings of the Company. The Company shares are issued at nil par value.
On 28 March 2024, the Company issued 800,776 shares, in lieu of management fees incurred in H2 2023 equivalent to £1,008,219.
On 30 September 2024, the Company issued 818,326 shares, in lieu of management fees incurred in H1 2024, equivalent to £994,536.
The Company intends to issue 881,732 shares in lieu of management fees incurred in H2 2024 on or around 31 March 2025, equivalent to
£1,005,464. This was recognised at 31 December 2024 in Other reserves.
On 8 August 2024, the Company initiated a share buyback programme, with 22,069,560 shares repurchased as at 31 December, equivalent
to £21,304,828 including broker costs and applied to the Capital reserve. The shares repurchased are settled on a T+2 basis with £20,851,993
fully paid on 31 December 2024.
Share capital and share premium
31 December
2024
£’m
31 December
2023
£’m
Opening balance 2,772.0 2,770.0
Ordinary Shares issued 2.0 2.0
Shares repurchased (21.3) –
Closing balance 2,752.7 2,772.0
Retained reserves
Retained reserves comprise retained earnings, as detailed in the statement of changes in shareholders’ equity.
TRIG Annual Report 2024
140
16. Foreign exchange forward contracts
The Company has entered into forward foreign currency contracts to hedge the expected Euro distributions up to a maximum of 48 months.
In addition, the Company has placed further hedges and aims to reach a position where 60%-80% of the valuation of Euro-denominated
assets is hedged, providing a partial offset to foreign exchange movements in the portfolio value relating to such assets.
The following table details the forward foreign currency contracts outstanding as at 31 December 2024. The total Euro balance hedged at
31December 2024 was €1,123.2m (2023: €1,224.9m).
31 December 2024
Average
exchange rate
(GBP:EUR)
Foreign currency
€’m
Notional value
£’m
Fair value
£’m
Less than 3 months 1.1869 43.0 36.2 0.5
3 to 6 months 1.1193 176.2 157.4 10.4
6 to 12 months 1.1236 146.6 130.5 6.6
12 to 24 months 1.1032 406.1 368.1 18.8
Greater than 24 months 1.1034 351.3 318.4 7.6
1.1114 1,123.2 1,010.6 43.9
31 December 2023
Average
exchange rate
(GBP:EUR)
Foreign currency
€’m
Notional value
£’m
Fair value
£’m
Less than 3 months – – – –
3 to 6 months 1.1068 146.4 132.3 4.6
6 to 12 months 1.0944 123.0 112.4 4.2
12 to 24 months 1.1197 365.8 326.7 2.1
Greater than 24 months 1.0995 589.7 536.3 4.2
1.1058 1,224.9 1,107.7 15.1
As at the year end, the valuation on the foreign exchange derivatives consisted of:
31 December 2024 31 December 2023
Fair value amount
(£’m)
S&P credit
rating at
31 December
2024
Fair value amount
(£’m)
S&P credit
rating at
31 December
2023
NatWest Markets Plc 16.8 A/Stable 6.4 A/Stable
National Australia Bank Limited 20.6 AA-/Negative 6.4 AA-/Negative
Barclays Bank Plc 5.7 A+/Stable 2.3 A+/Stable
Intesa Sanpaolo S.P.A 0.1 BBB/Stable (0.0) BBB/Stable
ABN Amro Bank N.V 0.3 A/Stable (0.0) A/Stable
Skandinaviska Enskilda Banken AB 0.4 A+/Stable (0.0) A+/Stable
Total fair value of FX forward hedges 43.9 15.1
The fair value of the derivative trades has been split in the following table. At year end, the Company was in a net receivable position of £43.9m
(2023: £15.1m receivable), consisting of £44.1m receivable netted off with £0.2m payable (2023: £17.0m receivable netted off with £1.9m payable).
Sensitivity of these FX forward contracts have been taken into account in the valuation of the portfolio, and therefore it is also included in the
currency rates sensitivity in Note 4 of these financial statements.
Notes to the Financial Statements continued
FinancialsStrategic Report Governance
TRIG Annual Report 2024
141
31 December
2024
£’m
31 December
2023
£’m
Assets
FX forward contracts expiring within 12 months 17.5 8.9
FX forward contracts expiring after 12 months 26.6 8.1
Total assets 44.1 17.0
Liabilities
FX forward contracts expiring within 12 months – (0.1)
FX forward contracts expiring after 12 months (0.2) (1.8)
Total liabilities (0.2) (1.9)
17. Related party and key adviser transactions
31 December
2024
£’m
31 December
2023
£’m
Loans to related parties:
Short-term balance outstanding on accrued interest receivable
1
– –
Short-term balance outstanding from TRIG UK, in relation to Management fees to be settled in shares
1
1.0 1.0
Long-term loan stock to TRIG UK and TRIG UK I
2
1,655.1 1,777.7
1,656.1 1,778.7
1 Included within Other receivables on the Balance Sheet.
2 Included within Investments at fair value through profit or loss on the Balance Sheet.
During the year, interest totalling £117.2m (2023: £122.6m) was earned in respect of the long-term interest-bearing loan between the Company
and its subsidiaries TRIG UK and TRIG UK I, of which £nil (2023: £nil) was receivable at the balance sheet date.
Key adviser transactions
The Group’s Investment Manager (InfraRed Capital Partners Limited) and Operations Manager (Renewable Energy Systems Limited)
are entitled to 65% and 35%, respectively, of the aggregate management fee (see below), payable quarterly in arrears. The Directors
and the key Investment Manager personnel are considered to be the Company’s key management personnel defined by IAS 24
‘Related Party Disclosures’.
The aggregate management fee payable to the Investment Manager and the Operations Manager is 1% of the Adjusted Portfolio Value in
respect of the first £1bn of the Adjusted Portfolio Value, 0.8% in respect of the Adjusted Portfolio Value between £1bn and £2bn, 0.75% in
respect of the Adjusted Portfolio Value between £2bn and £3bn and 0.70% in respect of the Adjusted Portfolio Value in excess of £3bn. These
fees are payable by TRIG UK, less the proportion that relates solely to the Company, the advisory fees, which are payable by the Company.
The advisory fees payable to the Investment Manager and the Operations Manager in respect of the advisory services they provide to the
Company are £130k per annum and £70k per annum, respectively. The advisory fees charged to the Company are included within the total
fee amount charged to the Company and its subsidiary, TRIG UK, as set out above. The Investment Manager advisory fee charged to the
income statement for the year was £130k (2023: £130k), of which £33k (2023: £33k) remained payable in cash at the balance sheet date.
The Operations Manager advisory fee charged to the income statement for the year was £70k (2023: £70k), of which £18k (2023: £35k)
remained payable in cash at the balance sheet date.
The Investment Manager management fee charged to TRIG UK for the year was £18,332k (2023: £19,750k), of which £4,161k (2023: £4,593k)
remained payable in cash at the balance sheet date. The Operations Manager management fee charged to TRIG UK for the year was £9,870k
(2023: £10,635k), of which £2,241k (2023: £2,473k) remained payable in cash at the balance sheet date.
TRIG Annual Report 2024
142
In addition, the Operations Manager received £15,740k (2023: £14,377k) for services in relation to Asset Management, Operation and
Maintenance and other services provided to project companies within the investment portfolio, and £201k (2023: £110k) for additional advisory
services provided to TRIG UK, neither of which are consolidated in these financial statements.
In line with the Investment Management Agreement and the Operations Management Agreement, 20% of the Group’s aggregate
management fees up to an Adjusted Portfolio Value of £1bn are to be settled in Ordinary Shares. The shares issued to the Managers by
the Company relate to amounts due to the Managers by TRIG UK. Accordingly, TRIG UK reimburses the Company for the shares issued.
Alongside the approval of these financial statements it has been announced that the Board and the Managers have agreed to a revised
management fee arrangement to apply from 1 April 2025. Thereafter, rather than being applied to adjusted portfolio value, the new
management fee will be applied to an equal weighting of (i) the average of the closing daily market capitalisation during each quarter and (ii) the
published Net Asset Value for the quarter as more fully described in the Chair’s Statement.
As at 31 December 2023, 800,776 shares equating to £1,008,219, based on a Net Asset Value ex dividend of 125.9p per share (the Net
Asset Value at 31 December 2023 of 127.7p per share less the interim dividend of 1.795p per share) were due, in respect of management fees
earned in H2 2023, but had not been issued. The Company issued these shares on 31 March 2024.
On 30 September 2024, the Company issued 818,326 shares, equating to £994,536, based on a Net Asset Value ex dividend of 121.5p per
share (the Net Asset Value at 30 June 2024 of 123.4p per share less the interim dividend of 1.8675p per share), in respect of management fees
earned in H1 2024.
As at 31 December 2024, 881,732 shares equating to £1,005,464, based on a Net Asset Value ex dividend of 114.0325p per share (the Net
Asset Value at 31 December 2024 of 115.9p per share less the interim dividend of 1.8675p per share) were due, in respect of management
fees earned in H2 2024, but had not been issued. The Company intends to issue these shares on or around 31 March 2025.
The Company is governed by a Board of Directors (the “Board”), all of whom are independent and non-executive. During the year, the Board
received fees for their services. Further details are provided in the Directors’ Remuneration Report on page 100. Total fees for the Directors for
the year were £367,500 (2023: £355,042). Directors’ expenses of £11,481 (2023: £19,441) were also paid in the year. There are no other Key
Management personnel within the Company.
18. Guarantees and other commitments
As at 31 December 2024, the Group had provided £156.7m (2023: £139.5m) in guarantees in relation to projects in the TRIG portfolio. The fair
value of the guarantees are negligible to the Company.
The Company also guarantees the RCF entered into by TRIG UK and TRIG UK I, which it may use to acquire further investments.
As at 31 December 2024 the Group has £95.0m of future investment obligations (2023: £131.3m).
More details on timing and amounts can be found on page 52 of the Strategic Report.
The Group have issued decommissioning and other similar guarantee bonds with a total value of £34.8m (2023: £41.4m).
19. Contingent consideration
The Group has performance-related contingent consideration obligations of nil (2023: £0.4m).
20. Events after the balance sheet date
On 5 February 2025, the Company renewed and reduced its RCF from £600m to £500m with a £60m working capital component and an
expiry date of 31 March 2028.
On 6 February 2025, the Company declared an interim dividend of 1.8675p per share for the period 1 October 2024 to 31 December 2024.
The total dividend, £45,808,717, payable on 31 March 2025, is based on a record date of 14 February 2025 and the number of shares in issue
at that time being 2,452,943,326.
Alongside the approval of these financial statements it has been announced that the Board and the Managers have agreed to a revised
management fee arrangement to apply from 1 April 2025. Thereafter, rather than being applied to adjusted portfolio value, the new
management fee will be applied to an equal weighting of (i) the average of the closing daily market capitalisation during each quarter and (ii) the
published Net Asset Value for the quarter as more fully described in the Chair’s Statement.
14m shares were repurchased between the balance sheet date and 24 February 2025 as part of the share buyback programme, equivalent
to £11m including broker fees and applied to the Capital reserve.
It is expected that proceeds will be received in early March 2025 from the sale of a 15.2% stake in Gode offshore wind farm, which was
announced 1 August 2024, and upon receipt, the RCF balance will reduce to c. £230m.
Notes to the Financial Statements continued
FinancialsStrategic Report Governance
TRIG Annual Report 2024
143
21. Subsidiaries, joint ventures and associates
As a result of applying Investment Entities (Amendments to IFRS 10, IFRS 12 and IAS 27) and Investment Entities: Applying the Consolidation
Exception (Amendments to IFRS 10, IFRS 12 and IAS 28), all subsidiaries (including Associates and joint ventures) are held at fair value based on
the Company’s ownership interest as opposed to being consolidated on a line-by-line basis. The following entities have not been consolidated
in these Financial Statements:
Name Country
Ownership interest
31 December 2024
Ownership interest
31 December 2023
The Renewables Infrastructure Group (UK) Limited UK 100% 100%
The Renewables Infrastructure Group (UK) Investments Limited UK 100% 100%
Roos Energy Limited UK 100% 100%
Grange Renewable Energy Limited UK 100% 100%
Hill of Towie Limited UK 100% 100%
Green Hill Energy Limited UK 100% 100%
Wind Farm Holdings Limited UK 100% 100%
Forss Wind Farm Limited UK – 100%
Altahullion Wind Farm Limited UK 100% 100%
Lendrum’s Bridge Wind Farm Limited UK 100% 100%
Lendrum’s Bridge (Holdings) Limited UK 100% 100%
Lough Hill Wind Farm Limited UK 100% 100%
European Investments (SCEL) Limited UK 100% 100%
European Investments (Cornwall) Limited UK 100% 100%
European Investments (Cornwall) Holdings Limited UK 100% 100%
Churchtown Farm Solar Limited UK 100% 100%
East Langford Solar Limited UK 100% 100%
Manor Farm Solar Limited UK 100% 100%
European Investments Solar Holdings Limited UK 100% 100%
Sunsave 12 (Derriton Fields) Limited UK 100% 100%
Sunsave 25 (Wix Lodge Farm) Limited UK 100% 100%
Parley Court Solar Park Limited UK 100% 100%
Egmere Airfield Solar Park Limited UK 100% 100%
Penare Farm Solar Park Limited UK 100% 100%
European Investments (Earlseat) Limited UK 100% 100%
Earlseat Wind Farm Limited UK 100% 100%
European Investments Solar Holdings 2 Limited UK 100% 100%
BKS Energy Limited UK 100% 100%
Hazel Renewables Limited UK 100% 100%
Kenwyn Solar Limited UK 100% 100%
MC Power Limited UK 100% 100%
Tallentire Energy Limited UK 100% 100%
Freasdail Energy Limited UK 100% 100%
Neilston Community Wind Farm LLP UK 100% 100%
TRIG Annual Report 2024
144
Carbon Free Limited UK 100% 100%
NDT Trading Limited UK 100% 100%
Carbon Free Neilston Limited UK 100% 100%
Garreg Lwyd Energy Limited UK 100% 100%
UK Energy Storage Services Limited UK 100% 100%
Solwaybank Energy Limited UK 100% 100%
European Wind Investments Group Limited UK 100% 100%
European Wind Investments Group 2 Limited UK 100% 100%
Irish Wind Investments Group Limited UK 100% 100%
Offshore Wind Investments Group Limited UK 100% 100%
Scandinavian Wind Investments Group Limited UK 100% 100%
European Storage Investments Group Limited UK 100% 100%
Trafalgar Wind Holdings Limited UK 100% 100%
European Wind Investment Group 3 Limited UK – 100%
European Investments Tulip Limited UK 100% 100%
Little Raith Wind Farm Limited UK – 100%
Blary Hill Energy Limited UK 100% 100%
Offshore Wind Investments Group 2 Limited UK 100% 100%
Offshore Wind Investments Group 3 Limited UK 100% 100%
Offshore Wind Investments Group 4 Limited UK 100% 100%
Offshore Wind Investments Group 5 Limited UK 100% 100%
Offshore Wind Investments Group 6 Limited UK 100% 100%
Offshore Wind Investments Group 7 Limited UK 100% 100%
Offshore Wind Investments Group 8 Limited UK 100% 100%
Scandinavian Wind Investments Group 2 Limited UK 100% 100%
Iberian Solar Investment Group Limited UK 100% 100%
Iberian Solar Investment Group 2 Limited UK 100% 100%
European Storage Investments Group 2 Limited UK 100% 100%
Verneuil Holdings Limited UK 71.7% 71.7%
Merkur Offshore Wind Farm Holdings Limited UK 100% 100%
Fred. Olsen Wind Limited UK 49.0% 49.0%
Fred. Olsen Wind Holdings Limited UK 49.0% 49.0%
Fred. Olsen Wind 2 Limited UK 49.0% 49.0%
Crystal Rig Windfarm Limited UK 49.0% 49.0%
Rothes Wind Limited UK 49.0% 49.0%
Paul’s Hill Wind Limited UK 49.0% 49.0%
Crystal Rig II Limited UK 49.0% 49.0%
Rothes II Limited UK 49.0% 49.0%
Notes to the Financial Statements continued
FinancialsStrategic Report Governance
TRIG Annual Report 2024
145
Mid Hill Wind Limited UK 49.0% 49.0%
Equitix Offshore 3 Limited (MidCo 1) UK 36.7% 36.7%
Equitix Offshore 4 Limited (MidCo 2) UK 36.7% 36.7%
Equitix Offshore 5 Limited (BidCo) UK 36.7% 36.7%
Bilbao Offshore Investment Limited UK 35.9% 35.9%
Bilbao Offshore Holding Limited UK 35.9% 35.9%
Beatrice Offshore Windfarm HoldCo Ltd UK 17.5% 17.5%
Beatrice Offshore Windfarm Ltd (ProjectCo) UK 17.5% 17.5%
Scira Offshore Energy Limited UK 14.7% 14.7%
East Anglia One Limited UK 14.3% 14.3%
Horizon Offshore Wind Limited UK 40.6% 40.6%
Jupiter Investor TopCo Limited UK 20.3% 20.3%
Jupiter Investor MidCo Limited UK 20.3% 20.3%
Jupiter Investor HoldCo Limited UK 20.3% 20.3%
Jupiter Offshore Wind Limited UK 20.3% 20.3%
Hornsea 1 Holdings Limited UK 10.2% 10.2%
Hornsea 1 Limited UK 10.2% 10.2%
European Storage Investments Holdings 1 Limited UK 100% 100%
European Storage Investments Holdings 2 Limited UK 100% 100%
European Storage Investments Holdings 3 Limited UK 100% 100%
Capella BESS Limited UK 100% 100%
Aludra BESS Limited UK 100% 100%
Botein BESS Limited UK 100% 100%
Development Storage Investments Group Limited UK 100% –
Fig Power Holdings Limited UK 100% –
Fig Power Limited UK 100% –
Albrighton Battery Storage Limited UK 100% –
Aspley Battery Storage Limited UK 100% –
Minsterley Battery Storage Limited UK 100% –
Uffington Battery Storage Limited UK 100% –
Market Drayton Battery Storage Limited UK 100% –
Drumore Battery Storage Limited UK 100% –
Spittal Battery Storage Limited UK 100% –
Templeton Battery Storage Limited UK 100% –
Newburn Battery Storage Limited UK 100% –
Birtley Battery Storage Limited UK 100% –
Nuneaton Battery Storage Limited UK 100% –
Torquay Battery Storage Limited UK 100% –
TRIG Annual Report 2024
146
Yeowood Battery Storage Limited UK 100% –
Port Dundas Battery Storage Limited UK 100% –
Avonmouth Battery Storage Limited UK 100% –
Northampton Battery Storage Limited UK 100% –
Spennymoor Energy Storage Limited UK 100% 100%
European Wind Investments Group 4 Limited UK 100% 100%
Lendrum’s Bridge Energy Limited UK 50% –
Altahullion Energy Limited UK 50% –
The Renewables Infrastructure Group (France) SAS France 100% 100%
CEPE de Haut Languedoc SARL France 100% 100%
CEPE du Haut Cabardes SARL France 100% 100%
CEPE de Cuxac SARL France 100% 100%
CEPE des Claves SARL France 100% 100%
CEPE de Puits Castan SARL France 100% 100%
Verrerie Photovoltaique SAS France 100% 100%
Parc Eollen Nordex XXI SAS France 100% 100%
CEPE Rosieres France 100% 100%
CEPE Montigny La Cour SARL France 100% 100%
Energies TIlle et Venelle Holdings SAS France 100% 100%
Energies Entre Tille et Venelle SAS France 100% 100%
Haut Vannier Holding SAS France 100% 100%
Haut Vannier SAS France 100% 100%
FPV du Midi France 51.0% 51.0%
FPV Chateau France 49.1% 49.1%
FPV du Plateau France 49.1% 49.1%
SECP Bongo France 49.1% 49.1%
SECP Olmo 2 France 49.1% 49.1%
FPV Pascialone France 49.1% 49.1%
FPV Santa Lucia France 49.1% 49.1%
FPV Agrinergie France 49.1% 49.1%
FPV d’Export France 49.1% 49.1%
Agrisol 1A Services France 49.1% 49.1%
SECP Chemin Canal France 49.1% 49.1%
FPV Ligne des Quatre Cents France 49.1% 49.1%
FPV Ligne des Bambous France 49.1% 49.1%
Heliade Bellevue France 49.1% 49.1%
SECP Creuilly France 49.1% 49.1%
Akuo Tulip Assets SAS France 49.1% 49.1%
Notes to the Financial Statements continued
FinancialsStrategic Report Governance
TRIG Annual Report 2024
147
FPV Broussan France 49.1% 49.1%
Fujin SAS France 41.9% 41.9%
Eolienne de Rully France 41.9% 41.9%
Parc Eollen de Fontaine Macon France 41.9% 41.9%
Parc Eollen de Vignes France 41.9% 41.9%
Val De Gronde France 37.3% 37.3%
Energie du Porcin France 33.5% 33.5%
German Offshore Wind Investments Group (Holdings) Limited Germany 100% 100%
German Offshore Wind Investments Group Limited Germany 100% 100%
Gode Wind 1 Investor Holding GmbH Germany 50.0% 50.0%
Gode Wind 1 Offshore Wind Farm GmbH Germany 25.0% 25.0%
Merkur Offshore GP GmbH Germany 35.7% 35.7%
Merkur Offshore Investment Holdings GmbH & Co KG Germany 35.7% 35.7%
Merkur Offshore Holdings GmbH Germany 35.7% 35.7%
PG Merkur Holding GmbH Germany 35.7% 35.7%
Merkur Offshore GmbH Germany 35.7% 35.7%
Merkur Offshore Service GmbH Germany 35.7% 35.7%
Malabrigo Solar SLU Spain 100% 100%
Arenosas Solar SLU Spain 100% 100%
El Yarte Solar SLU Spain 100% 100%
Pisa Solar Holdings SL Spain 100% 100%
Evacuacion Solar Arcos SL Spain 100% 100%
Valdesolar SL Spain 49.0% 49.0%
Pallas Energy Supply Limited Republic of Ireland – 100%
Pallas Windfarm Limited Republic of Ireland – 100%
Sirocco Wind Holding AB Sweden 100% 100%
Jädraås Vindkraft AB Sweden 100% 100%
Gronhult Wind AB Sweden 100% 100%
Hallasen Kraft AB Sweden 100% 100%
Krange Wind AB Sweden 50% 50%
GOW01 Investor LuxCo SARL Luxembourg 50% 50%
TRIG Annual Report 2024
148
Althahullion
Sector: Onshore wind
Location: Northern Ireland
Net capacity: 38MW
Holding: 100%
FinancialsStrategic Report Governance
TRIG Annual Report 2024
149
Appendices (unaudited)
Product name: The Renewables Infrastructure Group Limited
Legal entity identifier: 213800NO6Q7Q7HMOMT20
Environmental and / or social characteristics
Did this financial product have a sustainable investment objective?
Yes No
It made sustainable investments
with an environmental objective:
___%
in economic activities that qualify
as environmentally sustainable
under the EU Taxonomy
in economic activities that do
not qualify as environmentally
sustainable under the
EU Taxonomy
It made sustainable investments
with a social objective: ___%
It promoted Environmental/Social
(E/S) characteristics and while
it did not have as its objective a
sustainable investment, it had a
proportion of ___% of sustainable
investments
with an environmental objective in
economic activities that qualify as
environmentally sustainable under
the EU Taxonomy
with an environmental objective
in economic activities that
do not qualify as environmentally
sustainable under the
EU Taxonomy
with a social objective
It promoted E/S characteristics,
but did not make any
sustainable investments
To what extent were the environmental and / or social
characteristics promoted by this financial product met?
The Renewables Infrastructure Group Limited’s (the “Company” or “TRIG”) investment
proposition is to generate sustainable returns from a diversified portfolio of renewables
infrastructure that contribute towards a net zero carbon future. The Company’s E/S
characteristics are as follows:
– Mitigate adverse climate change
– Preserve our natural environment
– Positively impact the communities we work in
– Maintain ethics and integrity in governance
These were met during the year, which can be exemplified by the actions reported on page 37
and the indicators on pages 68 to 76.
Sustainable investment
means an investment
in an economic activity
that contributes to an
environmental or social
objective, provided that
the investment does not
significantly harm any
environmental or social
objective and that the
investee companies follow
good governance practices.
The EU Taxonomy is a
classification system laid
down in Regulation (EU)
2020/852, establishing
a list of environmentally
sustainable economic
activities. That Regulation
does not lay down a list
of socially sustainable
economic activities.
Sustainable investments with
an environmental objective
might be aligned with the
Taxonomy or not.
TRIG Annual Report 2024
150
Appendices
Sustainable Finance Disclosures Regulation (SFDR) Periodic Disclosures (unaudited) continued
How did the sustainability indicators perform?
InfraRed has used the following sustainability indicators to measure the attainment of the
E/S characteristics:
– Environmental: Renewable electricity generated, homes (equivalent) powered, carbon
emissions avoided, percentage of UK portfolio sourcing electricity under Renewable
Electricity Supply Contracts and Scope 1, 2, 3 emissions; and
– Social: Number of community funds within the TRIG portfolio, community contributions per
annum in £, and number of sites that have any outstanding issues with the local community.
Information regarding the performance of TRIG’s investments against sustainability indicators
is provided in the table on page 37 of this Annual Report.
…and compared to previous periods?
A comparison to the previous period’s results can be found in the table on page 37.
What were the objectives of the sustainable investments that the
financial product partially made and how did the sustainable investment
contribute to such objectives?
N/A
How did the sustainable investments that the financial product partially
made not cause significant harm to any environmental or social
sustainable investment objective?
N/A
How were the indicators for adverse impacts on sustainability factors
taken into account?
N/A
Were sustainable investments aligned with the OECD Guidelines for
Multinational Enterprises and the UN Guiding Principles on Business
and Human Rights? Details:
N/A
The EU Taxonomy sets out a “do no significant harm” principle by which Taxonomy-
aligned investments should not significantly harm EU Taxonomy objectives, and is
accompanied by specific EU criteria.
The “do no significant harm” principle applies only to those investments underlying
the financial product that take into account the EU criteria for environmentally sustainable
economic activities. The investments underlying the remaining portion of this financial
product do not take into account the EU criteria for environmentally sustainable
economic activities.
Any other sustainable investments must also not significantly harm any environmental
or social objectives.
Sustainability indicators
measure how the
environmental or social
characteristics promoted by
the financial product
are attained.
FinancialsStrategic Report Governance
TRIG Annual Report 2024
151
How did this financial product consider principal adverse
impacts on sustainability factors?
Prior to acquisition of an investment, the Investment Manager considered the mandatory
principal adverse impact indicators in Table 1 Annex 1 of the SFDR RTS, to the extent
that relevant data is available from each potential investee company. Post-acquisition, the
Investment Manager and Operations Manager (together, the “Managers”) ensured assessment
of the mandatory principal adverse impacts on an ongoing basis through an annual ESG
Survey which portfolio companies are asked to complete, the results of which are published
in TRIG’s Sustainability Report in calendar Q2 each year. Information regarding InfraRed’s
consideration of the principal adverse impacts in respect of TRIG’s investments will be
provided in TRIG’s Sustainability Report due to be published during 2025.
What were the top investments of this financial product?
The information shown in the table below has also been provided on page 44 of this
Annual Report.
Project Location Type 31 December 2024
Hornsea One England Offshore wind 10%
Jädraås Sweden Onshore wind 7%
Merkur Germany Offshore wind 7%
Beatrice Scotland Offshore wind 6%
East Anglia One England Offshore wind 6%
Garreg Lwyd Wales Onshore wind 4%
Grönhult Sweden Onshore wind 3%
Solwaybank Scotland Onshore wind 3%
Ranasjö Sweden Onshore wind 3%
Sheringham Shoal England Offshore wind 3%
December 2024 largest ten investments 51%
Balance does not cast due to rounding
What was the proportion of sustainability-related investments?
N/A
What was the asset allocation?
98.5% of TRIG’s investments were made to attain the E/S characteristics in the reporting period.
To confirm, the Company’s asset allocation has been calculated based on market values
in respect of “#1 Aligned with E/S characteristics” investments and mark-to-market value
in respect of the “#2 Other” assets (as detailed further below).
#2 Other – 1.5%
#1 Aligned with E/S
characteristics – 98.5%
Investments
#1 Aligned with E/S characteristics includes the investments of the financial product used to attain the environmental or
social characteristics promoted by the financial product.
#2 Other includes the remaining investments of the financial product which are neither aligned with the environmental or
social characteristics, nor are qualified as sustainable investments.
In which economic sectors were the investments made?
The Company’s investments were in infrastructure assets, in the following sectors: onshore
and offshore wind farms, solar parks and flexible capacity infrastructure.
Principal adverse impacts
are the most significant
negative impacts of
investment decisions on
sustainability factors relating
to environmental, social
and employee matters,
respect for human rights,
anti-corruption and anti-
bribery matters.
Asset allocation describes
the share of investments in
specific assets.
The list includes the
investments constituting
the greatest proportion of
investments of the financial
product during the reference
period which is: 1 January to
31 December 2024
TRIG Annual Report 2024
152
Appendices
SFDR Periodic Disclosures (unaudited) continued
1 As provided in Annex I of Commission Delegated Regulation (EU) 2021/2139 of 4 June 2021.
2 Fossil gas and / or nuclear related activities will only comply with the EU Taxonomy where they contribute to limiting climate
change (“climate change mitigation”) and do not significantly harm any EU Taxonomy objective – see explanatory note in the
left-hand margin. The full criteria for fossil gas and nuclear energy economy activities that comply with the EU Taxonomy are
laid down in Commission Delegated Regulation (EU) 2022/1214.
Taxonomy-aligned activities
are expressed as a share of:
– Turnover reflects the
‘greenness’ of investee
companies today.
– Capital expenditure
(CapEx) shows the green
investments made by
investee companies,
relevant for a transition
to a green economy.
– operational expenditure
(OpEx) reflects the green
operational activities of
investee companies.
Placeholder chart
To what extent were the sustainable investments with
an environmental objective aligned with the EU Taxonomy?
While the Company has not made a commitment to make sustainable investments within
the meaning of SFDR, the Company has made investments which are Taxonomy-aligned.
This Annual Report contains the latest results of an internal assessment of the Company’s
investments against the EU Taxonomy technical screening criteria contained in the Taxonomy
Climate Delegated Act. The Company conducted the assessment on all investments, of which
98% were determined as eligible to contribute to an environmental objective as defined by the
EU Taxonomy. Based on the information provided by those eligible investments, the Company
determined that 95% of all investments, by portfolio value, are Taxonomy aligned.
TRIG’s Taxonomy-aligned investments substantially contributed to the environmental objective
of climate change mitigation, and are aligned with the following environmentally sustainable
economic activities:
– Electricity generation from solar photovoltaic technology
– Electricity generation from wind power
– Storage of electricity
1
Did the financial product invest in fossil gas and / or nuclear energy
related activities complying with the EU Taxonomy?
2
Yes (specify below, and details in the
graphs of the box)
No
In fossil gas
In nuclear energy
The graphs below show in green the percentage of investments that were aligned with
the EU Taxonomy. As there is no appropriate methodology to determine the taxonomy-
alignment of sovereign bonds,* the first graph shows the Taxonomy alignment in relation
to all the investments of the financial product including sovereign bonds, while the second
graph shows the Taxonomy alignment only in relation to the investments of the financial
product other than sovereign bonds.
OpEx
CapEx
†
Turnover
Valuation
0%
60% 80%40%20% 100%
Taxonomy-alignment of investments
including sovereign bonds*
Taxonomy-alignment of investments
excluding sovereign bonds*
Taxonomy-aligned Non-taxonomy aligned - non eligible
95.3% 2.4%
98.4%
1.6%
Non-taxonomy aligned - eligible
2.3%
98.3% 1.7%
OpEx
CapEx
†
Turnover
Valuation
0%
60% 80%40%20% 100%
95.3% 2.4%
98.4%
1.6%
2.3%
98.3% 1.7%
* For the purpose of these graphs, ‘sovereign bonds’ consist of all sovereign exposures.
† Given the nature of the Company, degree of alignment for CapEx was not assessed.
FinancialsStrategic Report Governance
TRIG Annual Report 2024
153
To comply with the EU
Taxonomy, the criteria for
fossil gas include limitations
on emissions and switching
to fully renewable power
or low-carbon fuels by the
end of 2035. For nuclear
energy, the criteria include
comprehensive safety and
waste management rules.
Enabling activities directly
enable other activities to make
a substantial contribution to
an environmental objective.
Transitional activities are
activities for which low-
carbon alternatives are not yet
available and, among others,
have greenhouse gas emission
levels corresponding to the
best performance.
Sustainable investments with
an environmental objective
that do not take into account
the criteria for environmentally
sustainable economic
activities under Regulation
(EU) 2020/852.
What was the share of investments made in transitional and enabling
activities?
The environmentally sustainable economic activity of storage of electricity is an enabling
activity under the EU Taxonomy. However, the proportion of TRIG’s portfolio that performs
this activity will be dependent on the investment composition by asset type. Based on
the portfolio composition as at 31 December 2024, investments in renewable energy
enabling infrastructure constituted 6% of TRIG’s committed portfolio valuation, however
this percentage will change based on future investments or divestments. On that basis,
the minimum share could be less than 1%. In addition, the Company does not make any
investments in transitional activities, therefore the minimum share of investments in such
activities is 0%. However, TRIG invests in renewables and related infrastructure opportunities
which, over time, may include transitional activities (which, if applicable, would be reported
as part of TRIG’s annual results).
How did the percentage of investments that were aligned with the
EU Taxonomy compare with previous reference periods?
The Managers have reviewed and assessed that the Company’s investments are 95%
aligned with the EU Taxonomy on the basis of the portfolio valuation as at 31 December
2024 (compared to 89% aligned as at 31 December 2023). This increase is a result of
obtaining more substantive evidence in relation to the ‘do no significant harm’ criteria,
as well as updates to policies and procedures to demonstrate alignment with the
Minimum Social Safeguard criteria.
What was the share of sustainable investments with an environmental
objective not aligned with the EU Taxonomy?
N/A
What was the share of socially sustainable investments?
N/A
What investments were included under “other”, what was their purpose
and were there any minimum environmental or social safeguards?
Currency, interest rate and power price hedging is carried out to seek to provide protection
against foreign exchange risk and increasing costs of servicing Group debt (as defined in the
Prospectus) drawn down to finance investments. However, currency and interest rate hedging
transactions will only be undertaken for the purpose of efficient portfolio management and
will not be carried out for speculative purposes. As at the end of this reporting period, the
company held FX forward contracts which are classified as “other” and equated to 1.5%.
What actions have been taken to meet the environmental
and / or social characteristics during the reference period?
The Company took several actions during the period to meet its E/S characteristics, as
outlined below.
Mitigating adverse climate change
Renewable energy generated in the period decreased from 5,986GWh to 5,915GWh, due to
the divestment of assets from the portfolio. The corresponding benefits of this generation in
respect of carbon emissions avoided and homes powered is reported in the table on page 39
of this Annual Report.
In addition to investing in renewable and flexibility capacity infrastructure, the Company also
took a number of steps to reduce the GHG emission impacts of its portfolio. This includes
increasing the proportion of the total portfolio sourcing on-site electricity under Renewable
Electricity Supply Contracts from 89% to 94%.
Preserving the natural environment
In 2024, the Company increased the number of ongoing proactive environment enhancement
projects that exceed standard environmental maintenance within the portfolio from 38 to 53.
This increase builds on the engagement and feedback from the 2023 sustainability survey
which encouraged further initiatives within the portfolio. The nature of habitat enhancement
varies depending on the infrastructure and location of farms, but includes beehives, planting
wildflower meadows and hedgerows, installing bat and bird boxes and improving the habitat
for local endangered species. One example includes the creation of additional ponds for the
Great Crested Newt population at Garreg Lwyd onshore wind farm. Currently, 37% of the
projects in the portfolio maintain the environmental enhancements.
TRIG Annual Report 2024
154
Reference benchmarks
are indexes to measure
whether the financial product
attains the environmental or
social characteristics that
they promote.
Appendices
SFDR Periodic Disclosures (unaudited) continued
Positively impacting the communities in which the Company works
As highlighted above, during 2024 TRIG distributed £1.7m of community funding across 46
community funds. In addition to community funding, TRIG also looks to identify opportunities
to engage with schools in the local communities to educate students on renewable energy
and facilitate site visits to the projects where possible.
Further information about specific case studies for TRIG’s and the Manager’s community-
related initiatives is provided in the Company’s Sustainability Reports.
Maintaining ethics and integrity in governance
During the period, several initiatives were taken to support this E/S characteristic including:
– The Investment Manager continues to undertake detailed due diligence on its supply chain,
particularly in relation to new flexible capacity investments
– The Operations Manager increased engagement with the portfolio companies to improve
participation in the annual sustainability survey and the cybersecurity survey. This
engagement included further focus on GHG emissions inventory, focusing on activity-based
emissions that will enable a better understanding of where the material emissions sit. The
results of these surveys will be published in TRIG’s 2025 Sustainability Report
– The Investment Manager and Operations Manager hosted Spring and Autumn TRIG
sustainability summits. These happen biannually and are organised for the stakeholders that
are integral to providing sustainability data. They celebrate sustainability initiatives, provide
information on TRIG’s annual sustainability performance and identify areas for further
improvement in key sustainability metrics
– Climate change risks have been discussed at a board level across the majority of project
companies and have now been incorporated into the risk registers these project companies
Both Managers engaged directly with policy makers and through trade bodies in relation to
public policy matters
How did this financial product perform compared to the
reference benchmark?
N/A
How does the reference benchmark differ from a broad market index?
N/A
How did this financial product perform with regard to the sustainability
indicators to determine the alignment of the reference benchmark with
the environmental or social characteristics promoted?
N/A
How did this financial product perform compared with the reference
benchmark?
N/A
How did this financial product perform compared with the broad market
index?
N/A
FinancialsStrategic Report Governance
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155
Glossary
Item Definition
Initial Public Offering (IPO) The act of offering the stock of a company on a public stock exchange for the first time. TRIG
completed its IPO in July 2013.
Net Asset Value (NAV) Net Asset Value, being the value of the investment company’s assets, less any liabilities it has. The
NAV per share is the NAV divided by the number of shares in issue. The difference between the
NAV per share and the share price is known as the discount or premium.
Renewable electricity
generated
The amount of renewable electricity generated by the portfolio during the year, net of the
Company’s ownership share.
Tonnes of CO
2
avoided
per annum
The estimate of the portfolio’s annual CO
2
emission reductions, based on the portfolio’s estimated
generation as at the relevant reporting date prepared on the International Financial Institution (IFI)
approach to Greenhouse Gas (GHG) Accounting.
Sustainable Finance
Disclosures Regulation (SFDR)
An EU law which aims to standardise disclosure requirements on how financial market participants
integrate environmental, social and governance factors in their investment decision-making and risk
processes. Further detail can be found in the Sustainability section.
Revolving credit facility (RCF) TRIG has a £500m RCF at fund level which provides short-term financing. The RCF has a
three-year term and expires on 31 March 2028. See the Financial Review section of the report
on page 48.
Renewable Energy Guarantees
of Origin certificates (REGOs)
The Renewable Energy Guarantees of Origin (REGO) scheme in the UK provides transparency to
consumers about the proportion of electricity that suppliers source from renewable electricity. This
scheme provides certificates called REGOs which demonstrate electricity has been generated
from renewable sources. EU Member States’ version of the REGO scheme is called Guarantees of
Origin (GoOs).
Lost Time Accident Frequency
Rate (LTAFR)
A safety at work metric which measures the number of personnel injured and unable to perform
their normal duties for seven days or more, for each 100,000 hours worked. All accidents are
recorded, but only accidents that have resulted in the worker being unable to perform their normal
duties for more than seven days are included in this calculation, in line with reportable accidents as
defined by UK HSE RIDDOR regulation.
RIDDORs RIDDOR, short for Reporting of Injuries, Diseases and Dangerous Occurrences Regulations, is
a form of Health and safety legislation in the UK that governs what incidents organisations are
required to report on.
Review of Electricity Market
Arrangements (REMA)
REMA fulfils a government commitment in the British Energy Security Strategy to undertake
a comprehensive review of electricity market design, to ensure that it is fit for the purpose of
maintaining energy security and affordability through the energy transition. The review primarily
explores reforms to wholesale electricity markets to decouple power and gas prices and reviewing
options to encourage the mass adoption of low-carbon technology.
Local Electricity Discount
Schemes (LEDS)
LEDS is a type of community fund initiative designed to offer energy consumers, local to
participating projects, a discount on their annual electricity bills.
TRIG Annual Report 2024
156
Directors and Advisers
Directors
Richard Morse (Chair)
John Whittle
Tove Feld
Erna-Maria Trixl
Selina Sagayam
Registrar
MUFG Corporate Markets (Guernsey) Limited
PO Box 627
St Peter Port
Guernsey GY1 4PP
Administrator to company,
designated manager,
company secretary and
registered office
Aztec Financial Services (Guernsey) Limited
PO Box 656
East Wing
Trafalgar Court
Les Banques
St Peter Port
Guernsey GY1 3PP
+44 1481 748 831
Investment Manager
InfraRed Capital Partners Limited
Level 7, One Bartholomew Close
Barts Square
London EC1A 7BL
Operations Manager
Renewable Energy Systems Limited
Beaufort Court
Egg Farm Lane
Kings Langley
Hertfordshire WD4 8LR
Financial PR
Brunswick
16 Lincoln’s Inn Fields
London
WC2A 3ED
UK transfer agent
MUFG Corporate Markets (UK) Limited
Central Square
29 Wellington Street
Leeds
LS1 4DL
Auditor
Deloitte LLP
Regency Court
Esplanade
St Peter Port
Guernsey GY1 3HW
Joint brokers
Investec Bank Plc
30 Gresham Street
London EC2V 7QP
BNP Paribas
10 Harewood Avenue
London NW1 6AA
FinancialsStrategic Report Governance
TRIG Annual Report 2024
157
Key Company Data
Company name
The Renewables Infrastructure Group Limited
Registered address
East Wing Trafalgar Court Les Banques St Peter Port Guernsey
Listing
London Stock Exchange – Premium Listing
Ticker symbol
TRIG
SEDOL
BBHX2H9
Index inclusion
FTSE All-Share, FTSE 250, FTSE 350 and FTSE 350 High Yield indices
Company year end
31 December
Dividend payments
Quarterly (March, June, September, December)
Investment Manager
(“IM”)
InfraRed Capital Partners Limited
Operations Manager
(“OM”)
Renewable Energy Systems Limited
Company Secretary and
Administrator
Aztec Financial Services (Guernsey) Limited
Net assets
£2,856m as at 31 December 2024
Market capitalisation
£2,134m as at 31 December 2024
Management fees
(effective from
1 April 2025)
Calculated on the basis of an equal weighting of (i) the average of the closing daily market capitalisation
during each quarter and (ii) the published Net Asset Value for the quarter. The following percentages
arethen applied to this basis: 1% per annum up to £1.0bn, falling to 0.8% per annum for the above
£1.0bn, 0.75% per annum above £2.0bn and 0.7% per annum above £3.0bn; fees split 65:35 between
IM and OM.
ISA, PEP and
SIPP status
The Ordinary Shares are eligible for inclusion in PEPs and ISAs (subject to applicable subscription limits)
provided that they have been purchased in the market. The shares are permissible assets for SIPPs.
NMPI status
Following the receipt of legal advice, the Board confirms that it conducts the Company’s affairs, and
intends to continue to conduct the Company’s affairs, such that the Company would qualify for approval
as an investment trust if it were resident in the United Kingdom and that IFAs should therefore be able
to recommend its Ordinary Shares to ordinary retail investors in accordance with the FCA’s rules relating
to non-mainstream investment products.
FATCA
The Company has registered for FATCA and has a GIIN number J0L1NL.99999.SL.831.
KID
The Company issues a KID in line with UK PRIIPs regulation and this can be found on the
Company’s website.
Investment policy
The Company’s investment policy can be found on the Company’s website.
1 Adjusted Portfolio Value means fair market value of the investments deducting project finance debt held within the investments and any other long-term debt held by the Group, but not deducting
any drawings under the revolving credit facility or any other liabilities or accruals held separately to the investments.
TRIG Annual Report 2024
158
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East Wing
Trafalgar Court
Les Banques
St Peter Port
Guernsey
GY1 3PP