Renewable Energy M&A: TRIG's Strategic Move into the Battery Storage Sector with Fig Power Acquisition

Introduction:

In a bold stride towards a sustainable future, TRIG (The Renewables Infrastructure Group) has recently acquired Fig Power, a prominent UK-based developer specializing in battery storage. This acquisition marks a significant milestone in TRIG's journey, underscoring its commitment to diversifying its energy portfolio and enhancing its role in the energy transition. In this blog, we'll delve into the nuances of this acquisition, its implications for the renewable energy landscape, and the promising horizon it unveils for TRIG and the broader energy sector.

The Strategic Acquisition:

A Leap into Battery Storage:

TRIG's acquisition of Fig Power, with its impressive 1.7GW development pipeline, signifies a major leap into the battery storage sector. This move is not just about expanding TRIG's portfolio but also about embracing a technology that is pivotal to the energy transition. Battery storage is the linchpin that enables the integration of renewable energy sources into the grid, providing the flexibility and reliability needed to balance supply and demand.

Diversification and Growth:

By integrating Fig Power into its fold, TRIG is not just diversifying its technological portfolio but also setting the stage for substantial growth. The acquisition brings 400MW of projects with grid connection offers and an additional 1.3GW of exclusive sites under its wing. This expansion is expected to unfold with an estimated investment of around £20m over the next two years, split between upfront considerations and ongoing development expenditures.

Enhancing Revenue Streams:

Beyond Portfolio Expansion:

TRIG's strategy goes beyond mere portfolio expansion. By acquiring Fig Power, TRIG positions itself to sell developed projects to third parties, thereby crystallizing development value and enhancing its revenue streams. This move is expected to make Fig Power self-funding within two years, showcasing a sustainable and forward-thinking approach to investment.

A Synergistic Partnership:

The collaboration between TRIG and Fig Power is more than a financial transaction; it's a synergistic partnership that leverages the strengths of both entities. Fig Power's management team, with its extensive industry experience, combined with TRIG's market presence and scale, creates a formidable force in the energy sector. This partnership is poised to drive the development and construction of operational assets, delivering economic, environmental, and social value.

Implications for the Energy Transition:

Accelerating the Shift to Renewables:

The acquisition of Fig Power by TRIG is a significant step in accelerating the energy transition. Battery storage is crucial for the widespread adoption of renewable energy, as it addresses the challenges of intermittency and grid stability. By investing in battery storage, TRIG is contributing to a more resilient and sustainable energy system.

A Vision for the Future:

The collaboration between TRIG and Fig Power is not just about current projects; it's about shaping the future of the energy landscape. With preliminary construction works already underway and more projects on the horizon, this partnership is poised to make a lasting impact on the renewable energy sector.

Conclusion:

The acquisition of Fig Power by TRIG is a testament to the importance of strategic investment in the renewable energy sector. It highlights the need for diversification, innovation, and collaboration in driving the energy transition. As we move towards a more sustainable future, investors, companies, and stakeholders must embrace opportunities that not only yield financial returns but also contribute to environmental and social progress. Let's join hands in this journey towards a greener, more resilient energy landscape.

The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.

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