Green investors The Renewables Infrastructure Group have bought 7.8% of the world’s biggest working wind farm off Yorkshire, and will tap investors over the next seven days for more equity.

Originally built by Ørsted with 174 Siemens Gamesa 7MW turbines, Hornsea One began in 2020 piping power back from 120 kilometres out in the North Sea, adequate for 1 million homes’ needs.

Inflation-proofed Contracts for Difference (CfDs) on the facility still have 13 years to run, and the 407 square kilometre park is producing above expectations, according to this morning’s announcement.

The sum TRIG is paying current owners Global Infrastructure Partners for the 7.8% stake is not disclosed in today’s announcement.  The deal is subject to regulatory and lender consents. Both are expected in coming months, and the fund says it expects the deal to be completed before July.

Ørsted will continue to operate Hornsea One under a long-term operations and maintenance agreement.

Hornsea’s remaining phases Two, Three and Four are provisionally rated at 1.4 GW, 1 GW and 1.2 respectively.  Only Hornsea Four remains unconsented, Ørsted’s application being delayed until submission last September by concerns over kittiwake, guillemot and razorbill populations in protected stretches of the coast at Filey and Flamborough.  Part of the park’s plot is also scheduled for undersea carbon dioxide storage, presenting a possible conflict over use of the seabed and the ocean surface.

TRIGS has negotiated an increase by £100 million to £ 600 million in rolling credit from its bankers. The extra cash assists in building 3 Swedish wind projects and 1 Spanish PV farm.

 Power prices and output

Strong winds in early 2022, particularly February, coupled with the energy crisis, have seen “above budget”, “significantly elevated” power prices, TRIG tells investors this morning.

Approximately 30% of 2022’s revenues from TRIG’s portfolio are not fixed and are thus exposed to market prices for power.  Forward prices for 2022 and 2023  – and their volatility – have increased since TRIG’s portfolio was valued in December.

The firm stresses power prices are particularly volatile now, and that the outturn prices may be materially different to the forward prices at any particular point in time.

TRIG this morning discloses the following guideline prices used in its scenarios:

£/MWh 2022 2023
31 December 2021 £175/MWh £115/MWh
Approximate average forwards from 1 January 2022 to 15 March 2022 £200/MWh £145/MWh
Approximate average forwards from 24 February 2022 to 15 March 2022 £245/MWh £175/MWh


The prospect of another rights issue pushed TRIG’s share price 2.8% lower on the LSE by late morning, valuing it at £ 3.11 billion.

Investec and Liberum are running a bookbuilding process to determine the level of demand from potential investors.  No fixed price for the new equity is specified, but today’s announcement assures investors that the strike price will be at least 130 pence per share.  More details here.


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