The Renewables Infrastructure Group: A 30-Year Dividend Growth Runway

Seeking AlphaThe Renewables Infrastructure Group: A 30-Year Dividend Growth RunwayNov. 2, 2020 3:58 PM ET|| About: The Renewables Infrastructure Group Limited (RWFRF), Includes: BP, BPAQF, ECIFF, ECIFY, ENAKF, EONGY, RWEOY, RWNEFby: Thomas GaganThomas Gagan Commodities, utilitiesSummaryThis article initiates my coverage of The Renewables Infrastructure Group.
With government support, assets with 30 years of life, fixed energy contracts, diverse across generation & geographies and a strong dividend.
As the risk-free rate falls NAV has become inflated, the current premium is also at historically high levels implying the stock is overvalued.
This article contains a brief introduction, a company summary, a qualitative SWOT analysis, a quantitative analysis (financial metrics) and a conclusion.
Investment Thesis
I am currently "neutral" on The Renewables Infrastructure Group stock and very bullish on the business. With 30 years of future growth at 90% plus operating margins, there has never been a better time to be in green energy generation.
Company Summary
The Renewables Infrastructure Group (TRIG.L)(OTC:RWFRF) is a closed-ended investment company that operates from Guernsey. It invests in renewable energy operations/projects across Northern Europe. They hold both onshore and offshore wind assets, Photovoltaic assets and one battery storage asset.

Figure 1 - The Renewables Infrastructure Group group structure from the company website
This may seem a little complicated. Essentially the shareholders own the investment company, which then owns holding companies and Special Purpose Vehicles to control the assets. InfraRed and RES are the Investment and Operations Managers. There are independent directions which oversee the company ensuring stakeholder interests are being served. Other businesses are contracted out such as financial services, legal and PR.

Figure 2 - Investment & Operation responsibilities - H1 2020 Report
... Read more