Bristol energy developer acquired in a £20m deal

An energy projects developer in Bristol has been acquired in a deal which could be worth up to £20m.

The Renewables Investment Group, or TRIG, has announced the acquisition of Fig Power.

It is being advised by InfraRed Capital Partners  as investment manager and Renewable Energy Systems (“RES”) as operations manager.

Fig Power, a UK-based developer focused on battery storage, was formerly a sister company of consultancy Hydrock.

The deal will further TRIG’s technological diversification and bolster the development pipeline with 400MW of advanced stage battery storage projects.

Fig Power’s management team has extensive industry experience and a proven track record of success in the energy sector.

The expected outlay over the next two years is around £20m – approximately half for the upfront consideration and half relating to ongoing development expenditure.

Fig Power is projected to be self-funding from the proceeds of selling a portion of its pipeline once developed and prior to construction.

Funding of the business plan will be subject to annual budget reviews and at the discretion of TRIG.

Fig Power has a 1.7GW development pipeline in the UK, including nine more advanced projects.

Fig Power’s two-hour projects are expected to participate principally in the UK wholesale and balancing markets.

In addition to securing a pipeline of projects for TRIG to build, the Investment Manager anticipates opportunities to sell developed projects to third parties and crystallise development value for TRIG. Fig Power may also consider development opportunities in solar PV.

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. Fig Power will leverage the development experience of TRIG’s Managers. InfraRed has a strong track record of investing in flexible energy platforms for over a decade, most recently in Statera Energy. RES has been a pioneer in UK battery storage.

“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 H2 2024.”