Lack of UK Government support for the renewables sector has led UK investment firm TRIG to invest £42million in a French solar project.
TRIG (The Renewables Energy Group), said it had reached an agreement with French independent renewable energy producer Akuo Energy on terms for an investment in a portfolio of 15 operating brownfield French solar projects.
Investment manager at TRIG, Richard Crawford, said: “TRIG’s new partnership with Akuo Energy expands its French power production and further diversifies the company’s portfolio.
“The transaction adds attractive, highly predictable revenue streams to TRIG through the French feed-in tariff mechanism at a time when the volume of solar opportunities in the UK is expected to decline with the reductions in government support programmes.”
TRIG, which has a market capitalisation of £751mln, is to invest more in non-UK schemes following the government’s move last year to cut solar feed-in tariffs.
In France, it will acquire 49% equity interest worth £42 million, funded from its acquisition facility with Royal Bank of Scotland and National Australia Bank Limited.
Akuo will continue to provide detailed day-to-day administration as well as operations and maintenance through its directly employed teams across the Projects.
The French projects, commissioned from December 2010 to May 2012 and including sites on the mainland, Corsica, La Reunion and Guadaloupe, have power purchase agreements of up to 20 years with French power giant EDF, providing fixed, index linked revenues per MWh.