The Renewables Infrastructure Group Limited (LSE:TRIG) shares rose 0.90% to 78.2p in the latest market screen, gaining 0.70p and taking the renewable energy investment company's market capitalisation to around £1.78 billion.

The shares continue to trade at a deep discount to net asset value, with investors weighing a dividend yield of close to 10% against concerns over power prices and leverage.

Key Highlights

TRIG reported a NAV per share of 101.1p at 30 June 2026, down 2.9p from the end of 2025, mainly due to lower third-party power price and green certificate forecasts, including the UK Government's early removal of Carbon Price Support.

Operational cash flow reached £209 million in the first half, covering the £90 million cash dividend 2.3 times. Net dividend cover was restored to 1.1x, in line with the long-term target.

The 2026 dividend target of 7.55p per share was reaffirmed, representing a yield of around 10%.

In May 2026, the board set a target to realise £400 million over 12 months to May 2027, principally through asset disposals. TRIG spent £38 million on buybacks in the first half, adding 0.7p to NAV per share.

About The Renewables Infrastructure Group Limited

The Renewables Infrastructure Group Limited (LSE:TRIG) is a London-listed renewable energy investment company. It owns a diversified portfolio of wind, solar and battery storage assets across the UK and Europe, with a portfolio valued at around £2.8 billion.

TRIG aims to provide shareholders with a resilient dividend and long-term capital growth, with around 64% of portfolio revenues fixed over the next ten years.

The company has been actively managing its portfolio, including repowering projects and technology upgrades such as LiDAR at Hill of Tarry, which has improved energy yields.

Why Is LSE:TRIG Up Today?

The 0.90% rise to 78.2p does not appear to be linked to a new company announcement. At this price, the shares trade at a discount of roughly 23% to the June NAV of 101.1p.

Higher near-term power prices linked to the Middle East situation could support NAV. Management noted after the half year that NAV could be up to 1p higher due to increased near-term power prices.

Income investors may be attracted by the high, covered dividend and the ongoing buyback.

Key Reasons Behind the Uptick

One key factor is the high dividend yield of around 10%, backed by strong cash generation.

A second factor is the disposal programme, which aims to release £400 million to cut debt and fund buybacks.

Third, share buybacks at a deep discount are accretive to NAV per share.

Fourth, elevated power prices may support near-term revenues and valuations.

Key Growth Catalysts

The most important catalyst for LSE:TRIG is asset disposals at or near NAV, which would validate valuations and reduce debt.

RCF reduction from £276 million would strengthen the balance sheet.

Extended buybacks: the board has said surplus liquidity would likely be used to extend the buyback if the discount persists.

Interest rate cuts could narrow the discount for renewable infrastructure trusts.

Repowering and battery storage investments could enhance returns.

Risks

The main risk for LSE:TRIG is power price forecasts. Lower long-term price assumptions have reduced NAV.

Regulatory changes, such as the removal of Carbon Price Support, can affect revenues.

Weather risk: low wind speeds hurt 2025 results.

Gearing: the RCF balance remains elevated at £276 million.

Interest rates: higher rates increase discount rates and reduce sector appeal.

Valuation

At 78.2p, TRIG trades at roughly a 23% discount to its June NAV of 101.1p and offers a dividend yield of around 10%.

The key valuation question is whether disposals can be achieved close to NAV, proving the portfolio's value.

Capital Returns

TRIG targets a dividend of 7.55p per share for 2026, with net cover of 1.1-1.2x on a sustainable basis.

It has completed most of a £150 million buyback programme and plans to extend buybacks if the discount persists.

What Investors Should Watch Next

Investors in LSE:TRIG will watch for disposal announcements, RCF reduction and the Q3 NAV update.

Power price movements and interest rate decisions will also be important.

Overall, the 0.90% rise in LSE:TRIG to 78.2p reflects income appeal, buybacks and disposal plans. At the same time, power price forecasts, regulation and gearing remain key risks.