Infrastructure investor Triple Point Energy Transition (TENT) announced a £5 million (~$6 million) debt investment in solar, battery, and energy storage systems (ESS) developer Innova Renewables, part of the Innova Group, a diversified renewable energy company with operations in Europe, Africa, and Asia.
The debt funds will help Innova fund its development pipeline, which includes solar and ESS projects across the UK. Innova’s development pipeline of UK distribution-connected renewable projects is currently over 1.5 GW and expected to increase to over 2 GW, part of a total portfolio of over 20 GW.
The debt facility has a 12-month term and bears contractual returns to investors above 7-8%.
Commenting on the funding news, John Roberts, Chairman of Triple Point, 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.”
“We actively support this vital journey while 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 decarbonization of the grid through long-term and sustainable solutions,” added John Roberts.
According to Mercom Annual and Q4 2022 Solar Funding and M&A report, in 2022, announced debt financing came to $12 billion, a 24% decline compared to $15.8 billion raised during 2021. Securitization activity was a key contributor, with $3.1 billion in 12 deals. Earlier this year, Navisun, an independent power producer, secured up to $235 million in debt financing through two facilities. The funding will support the company’s growth strategy, allowing it to execute its project pipeline of distributed and small utility-scale solar and storage projects across the United States.