The Renewables Infrastructure Group (TRIG)19 June 2026

Disclaimer

Disclosure – Non-Independent Marketing Communication

This is a non-independent marketing communication commissioned by The Renewables Infrastructure Group (TRIG). The report has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on the dealing ahead of the dissemination of investment research.

Let’s go back to basics with TRIG: it’s a utility scale energy generator.

Overview

The Renewables Infrastructure Group (TRIG) has a £2.9bn diversified portfolio of renewable energy infrastructure assets spread across five countries and four technologies. The UK is the largest single country exposure at 59%, along with four other European countries. TRIG develops, constructs, operates and optimises assets across onshore and offshore wind, solar PV and battery storage and, in taking on the whole value chain from development, can sustain and extend the asset life of its portfolio without having to periodically raise fresh equity. There is high visibility over revenues with 68% fixed and 56% inflation-linked over the next ten years.

TRIG currently yields 10% and the dividend is fully covered. TRIG’s dividend for the year ending 31/12/2026 is targeted to be held at the same level as for 2025. This follows discussions between the board and shareholders and is a recognition that the dividend is already at a very attractive level. Nevertheless, dividend cover is expected to rise over the coming years, with the long-term objective of normalising at 1.1 to 1.2×.

One factor in TRIG’s high yield is the 29% discount. TRIG and its peer group have traded at wide discounts from the outset of the higher interest rate era, but in the Dividend section we look at how wide the spread between TRIG’s yield and government bonds is, suggesting that while, yes, its share price is sensitive to interest rates, the spread over bond yields has been stretched to its widest point since TRIG’s 2013 IPO. As we see in the Portfolio section, TRIG’s NAV is much less sensitive to interest rates though.

TRIG has a comprehensive capital allocation approach in response to the discount, with a £150m share buyback programme and targeted capital recycling.

Analyst’s View

Over the last few years, it has been very easy to get overwhelmed by all the detail when it comes to renewable energy infrastructure generally and TRIG specifically. And to focus on the big macro factor, interest rates, that has been the main influence on share prices, together with shifts in regulatory policy, the ‘Trump’ factor and power prices. But behind all of that, we find it very interesting that, at a point in time when global energy supply chains have just undergone perhaps one of the largest shocks in history, TRIG, which of course sells energy, is trading at a level where its dividend yield is at the widest spread over UK government bonds that it has been since its IPO. While we follow the short-term logic of investors taking a cautious stance on markets, the irony is striking. There will be, and already is, plenty of rhetoric about how the UK must do more to extract its own gas and oil resources, and whether that’s practical or not it doesn’t change the fact that renewables are not a small side hustle for the UK and other European countries, but an integral part of the energy mix.

TRIG’s big advantage in all of this is its diversification, scale and capacity to become self-sustaining. With wide discounts, raising fresh equity to acquire new operational assets is currently off the agenda, and development and construction have become an important part of the mix. TRIG has the scale to maintain dividend cover while allocating capital to generate higher returns from reinvestment and construction. The 29% discount therefore looks to us to be a remarkable opportunity.

Bull

  • True utility-scale diversified portfolio of assets
  • Development and construction pipeline could generate higher returns and extend the portfolio life
  • Wide discount and yield spread over government bonds

Bear

  • TRIG uses gearing, which can amplify losses as well as gains, albeit gearing is lower than average for the sector
  • A high proportion of fixed revenues, with over 55% inflation-linked, mean dividend growth may be lower than inflation
  • Political risk over energy policy has moved a notch higher in the UK but TRIG’s country diversification helps mitigate this