The Renewables Infrastructure Group (TRIG) has acquired UK-based battery storage developer Fig Power in a £20m (€23.5m) deal.
The London-listed investment company advised by InfraRed Capital Partners expects to invest £10m initially upfront to acquire Fig Power and invest the same amount in Fig Power’s ongoing development.
Fig Power has a 1.7GW development pipeline in the UK, including nine advanced projects and a further 1.3GW of exclusive sites.
Following TRIG’s investment, Fig Power aims to become self-sufficient by selling a portion of its developed pipeline assets before construction begins. However, TRIG retains the right to review and approve Fig Power’s annual budget and ultimately control its funding, it said.
In addition to securing a pipeline of projects for TRIG to build, investment manager InfraRed anticipates opportunities to sell developed projects to third parties and crystallise development value for TRIG.
Fig Power may also consider development opportunities in solar photovoltaics, TRIG said.
Richard Crawford, head of energy income funds at InfraRed Capital Partners, said: “Flexible capacity, of which battery storage is a key component, is core to the energy transition and important to the rollout of renewables. Batteries, therefore, represent an important investment sector for TRIG, providing diversifying and often complementary revenues to the portfolio.
“Adding development capabilities within TRIG’s investment portfolio creates the opportunity to capture higher returns for shareholders and generate a proprietary pipeline through a team that is closely aligned with TRIG’s objectives.”
Crawford said Fig Power also builds on the four development-stage battery investments that TRIG added in 2022.
“Preliminary construction works on the first of these projects began in January 2024 and we expect to start groundworks on the second project in the second half of 2024.”
To read the latest IPE Real Assets magazine click here.