Infrastructure investor Triple Point Energy Transition (TENT) has made a £5m debt investment in solar, battery and energy storage systems (ESS) developer Innova Renewables (Innova), part of the Innova group.
The finance will help Innova fund its development pipeline across the UK.
The facility has a 12- month term and delivers contractual returns to investors that are materially higher than the Group’s target return of 7-8%, reflecting the flexibility of the Group’s investment strategy, which is advantageous in current market conditions.
Innova’s development pipeline of UK distribution connected renewable projects is currently over 1.5GW and expected to increase to over 2GW, part of a total portfolio of over 20GW.
This comprises early- stage development of merchant and private wire solar and ESS assets and works towards Innova’s wider ambition to create 5GW of renewable energy capacity over the next three to five years and in excess of 20GW of renewable energy capacity in the UK over the next 10 years.
The facility is also anticipated to provide TENT with further opportunities for additional funding on similar terms in due course, the investor said.
John Roberts, TENT’s chair, said: “Facilitating the development of large-scale clean energy infrastructure is the key task that will unlock the UK’s achievement of Net Zero targets.
“Our aim is to actively support this vital journey whilst also delivering attractive shareholder returns.
“Innova is a well-established integrated developer and operator of solar and ESS assets, and we are delighted to be able to help the business achieve its aim of accelerating the decarbonisation of the grid, through long term and sustainable solutions.”
Robin Dummett, managing director of Innova Renewables, added: “Achieving the Government’s ambitious goals for solar and ESS deployment requires substantial funding for the development of renewable energy assets.
“We are delighted to be partnering with TENT to grow our pipeline of solar and ESS assets, and are actively exploring further ways to work together on future opportunities.”