The Renewables Infrastructure Group (TRIG) believes offshore wind and battery storage may offer better value than solar acquisitions in current market conditions.
Posting a 32% increase in pre-tax profits for the full year to £90.2 million, the company suggested its first investment in offshore wind, a 14.7% stake in Sheringham Shoal, could be followed by other offshore wind farms, both in the UK and Europe.
The firm said battery storage is another potentially attractive avenue to pursue, given the highly competitive secondary market for solar, with keen investors pushing up prices amid falling UK deal volumes.
Sustained competition to invest in renewables across the board has led the company to come in at the construction stage, with its first onshore wind farms completed during the financial year. TRIG chairman Helen Mahy said investing at construction stage enables the company to operate in a less crowded part of the market with potentially more attractive returns.
TRIG also suggested corporate PPAs may be a key enabler for subsidy-free solar.
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