The Renewables Infrastructure Group Limited (R7I.F) Earnings Call Transcript & Summary

Good morning, everybody, and welcome to The Renewables Infrastructure Group's 2025 Interim Results Presentation. I'm Richard Morse, the Chair of The Renewables Infrastructure Group. And I'd like to thank you all for your attendance in the room and online. We're reporting on a challenging period that has been dominated by 2 factors: low wind speeds and reductions in power price projections. Despite that backdrop, I'm pleased to reaffirm the 2025 dividend which represents a 9% yield and to report that the dividend was covered in the first half of 2025 alongside the repayment of over GBP 100 million of debt and the repurchase of 51 million of our own shares. It's helpful to see that the U.K. government has favored reforming the existing national electricity market rather than the potentially significant disruption and cost that a move towards a zonal market might have introduced. Our managers continue to engage with government as the reform process evolves. The Board welcomes the share price improvement since our 2024 year-end results in February. While it's encouraging that the share price discount to NAV has narrowed, we consider the current 24% discount to be disappointing and continue to pursue actions to narrow the share price discount further, which you'll hear about from both the managers in today's presentation. Thank you very much for your continuing support of the company. I'll now hand over to Minesh Shah.

Thank you, Richard. And thank you to everyone joining us both in person and online. Welcome to the 2025 Interim Results for The Renewables Infrastructure Group. It has been a challenging first half of the year for the renewables sector in Europe with unusually low wind speeds affecting generation. Despite this, I'm pleased to report good underlying asset performance, excellent progress of value enhancement activities with the rollout of operational and technical enhancements and the approval to repower the Cuxac onshore wind farm in France and positive public policy developments with the U.K. government concluding that it will continue with a single national electricity market for Great Britain. Throughout, we have remained focused on delivering resilient income and actively managing TRIG's diversified portfolio. Now nonetheless, below budget generation, a result of low wind speeds, together with a reduction in medium-term power price forecast sees the NAV at 108.2p per share or a NAV total return of minus 3% for the period. In that context, the resilience of TRIG's cash flows is demonstrated through gross cash cover of the dividend of 2.2x or 1.02x after the repayment of GBP 105 million project level debt, with a further GBP 85 million scheduled to be repaid in H2 from operational cash flows. And this resilience is reinforced with over 80% of revenues fixed price per unit generated over the next 12 months and over 55% of revenues over the next 10 years directly linked to inflation indices. And that means whilst poor wind speeds in H1 can also be expected to impact H2 cash flows, meaning that cash covering the dividend may be tight, the Board has reaffirmed the 2025 dividend target at 7.55p per share, which represents a 9% yield. The prospective annualized total return implied by the share price is 10%, and we are seeking to outperform this through the managers' value-enhancement activities, which in this period alone added GBP 19 million to portfolio value, as technical enhancements continue to be rolled out across the portfolio. And Chris will go into more detail on this later. On this next slide, we provide more detail on the trajectory of capital allocation. Two points to draw out here. Firstly, that we maintain a flexible approach to capital allocation. In response to a weaker share price, we have pivoted to greater emphasis on shareholder returns, including buybacks. And this has been equally true in the first half of this year as the share price discount widened, the Board accelerated the pace of buybacks; and as the discount narrowed, responded accordingly. As a result, the percentage of capital allocated to shareholder returns in H1 is at the top end of the range we set out at the start of the year. Secondly, with the cost of short-term debt reducing and the share price improving, the hurdle rate for new investments has reduced. The Board has approved the repowering of the Cuxac onshore wind farm in France, which presents a prospective return in the teens. Our balance sheet strength means that we can both provide attractive shareholder returns today as well as invest accretively for the future. And we have a large, diversified portfolio of renewable generation and energy storage assets across 6 power markets and 4 technologies that support both energy security and the energy transition in the U.K. and for Europe. We continue to see the benefit of diversification. And in this period alone, generation from our U.K. solar and our Swedish wind portfolios were well above budget, partially reducing the impact of lower generation for our U.K., German and French wind projects. And on this slide, a brief reminder of our portfolio. Geographically, it is split 60-40 U.K., rest of Europe. And on the technology side, 80% wind, 14% solar and 6% battery storage. And our medium-term objective remains to increase technology diversification and therefore see more solar and batteries in the portfolio. Adhering to our capital allocation priorities means this is currently being met through the sale of wind projects and building out our batteries in our 1 gigawatt development pipeline. And finally, before I hand over to Phil, this slide mirrors the themes we covered in our Capital Market seminar in May, starting on the top left. Our balance sheet is strong, and we have a prudent approach to capital allocation. We continue to progress opportunities to realize cash. And in the period, we completed the partial sale down of our position in the Gode offshore wind farm, delivering EUR 100 million of cash. Now reflecting on the transaction market, the past year has been challenging for disposals. At the end of last year, there was a hiatus in the transaction market as a result of the U.K. budget and then the U.S. election. And then there were the German elections at the start of this year. In H1 this year, buyers have been slow to return to the U.K. market as reports out of government seem to have changed their position on the structure of the electricity market almost on a weekly basis. With that uncertainty now lifted, we are working to progress our divestment activity in H2. In parallel, we are raising GBP 150 million private placement debt. It will be fixed rate and with repayment terms that mirror an amortization profile, thus staying true to our approach of low interest rate and low refinancing risk on the vast majority of our debt. On the top right, we speak to our 1 gigawatt development pipeline. Construction of the Ryton battery project is going well. The batteries are on site and being installed ahead of energization later this year. And market transactions show that batteries remain an attractive asset class and batteries remain core to public policy across Europe, as economies increase their energy security and decarbonize. And we'll also start decommissioning the Cuxac onshore wind project later this month with the new repowered site doubling the capacity of the existing site and with a new 20-year inflation-linked tariff, this is a really exciting investment for us. Now moving over to the bottom right, revenue management is core to our active management strategy. And in addition to the high fixed power price percentages we already have we have also agreed heads of terms for a 10-year corporate PPA in the U.K. for about 2% of our total portfolio generation, and we hope to sign that in the coming weeks. And finally, background to the bottom left. RES has a really exciting pipeline of operational and technical enhancements. Rollout is well underway and in the period, added GBP 19 million to portfolio value. You'll hear more about this from Chris later in the presentation. And with that, I hand over to Phil, TRIG's CFO, to take us through the financials.

Thank you, Minesh. I will now take you through the financial highlights and the valuation movements for H1 2025. The valuation of the investments, and therefore, the net asset value have declined in the period, mostly driven by macroeconomic factors and low wind speeds. The largest movement in the period has been a reduction in medium-term power price forecasts, which I'll go into in some detail following after going through the valuation bridge. The valuation has also benefited from active management of energy yield enhancements delivered in the period. NAV at the 30 June is 108.2p per share with a portfolio value of GBP 2.9 billion. And at June 2025, the Board commissioned an independent valuation of the portfolio as they do each year have corroborated the portfolio valuation. Being an investment company, the valuation movement reduces earnings, which in the period of minus 4.7p, which means after dividends paid in the period of 3.8p and with the benefit of share buybacks, NAV has reduced by 7.7p per share in the period. Dividend cover before project level debt repayments in the period of GBP 105 million was 2.2x. And dividend cover after those repayments was 1.0x. Dividend cover has been tighter than usual. Low wind speeds across many of our geographies over the period have reduced cash flows. We can expect this effect to flow into the second half of 2025, meaning that covering the full year 2025 dividend may be tight. We expect dividend cover to improve to more normal levels of 1.1 to 1.2x from 2026. And the target dividend for 2025 of 7.55p per share is reaffirmed by the Board. Stepping through the valuation bridge shows a trail from the opening valuation of GBP 3,116 million to the closing valuation of GBP 2,896 million. Starting from the left, investments of GBP 39 million we made in the period, mostly funded the construction of the Ryton battery in the U.K. and the commencement of the repowering of the Cuxac wind farm in France. Disposal proceeds of GBP 84 million related to the sale of a partial stake in the Gode offshore wind farm that completed in March, and cash flows up for the investments in the period were GBP 109 million, and so rebased portfolio value is GBP 2,962 million. And the rest of the bridge represents the operating income shown in the profit and loss account, and I'll be going into more detail on most of these items in the following slides. But briefly, on the bridge, we show the impact of the movement in FX on our euro-denominated assets, sterling has weakened 4% against the euro, resulting in a gain before hedge offset of GBP 44 million, as shown in the bridge. The company hedges FX outside of the portfolio and the losses on these hedges partially offset this impact resulting in net FX gain for the company for the period of GBP 21 million. Power price forecasts have declined in the medium term of the power curve, reducing NAV quite significantly, most of this impact being in Q2, and I'll come back to this in more detail in the next few slides. We increased discount rates for our European assets, but in Q1 by 0.3%, reflecting increases in EU government bond yields, and we applied a similar increase to U.K. assets, reflecting higher U.K. government bond yields in Q4 '24. And a slightly higher actual inflation for the year-to-date has increased NAV slightly. The final item on the bridge portfolio return for the period is GBP 36 million and represents an annualized 2.4% increase, which is lower than what we expected due to lower cash generation in the period due to unusually low wind speeds across the U.K. and also low winds in Germany and France. And the next few slides provide more detail on power price forecasts. As a reminder, TRIG takes a conservative approach to power price forecasting. We received forecast curves from 3 mainstream providers. We then reduced their base load curves to adjust for the lower price captured by renewable generators, which is cannibalization, and we take an average of those 3 curves. This approach means we capture a range of views in the market in relation to the evolution of supply and demand of electricity. And the biggest movement in the valuation of the period was a result of a reduction in power price forecasts. The power price forecasts have declined in the medium term with the most significant calls being one of the 3 forecasters in their Q2 update, taking a significantly more cautious view of forecast electricity demand growth across Europe than previously. And the majority of this impact relates to movements in forecast for the U.K. and Sweden. And because we take an average of the 3 forecast with cannibalized curves, this one forecast is more cautious view feeds into the blended curve applied and reduced projected power prices across several geographies, particularly in the late 2020s and early 2030s, around half or around GBP 60 million, which represents 2.5p per share of the GBP 124 million power price forecast valuation reduction, reflects the additional caution from that single forecaster in their latest update. Market participants who do not incorporate the views from this forecaster and follow a higher forecast curve may not be reflecting this effect. And the valuation of potential returns difference between following a blender-free forecasters or from following the lowest or the highest of the 3 forecasters has hence increased significantly in the period. And the table on the right of this slide shows this range increasing. We show the spread of portfolio return impacts for the portfolio and for GB wind being the region with our largest merchant exposure and also the region with the largest range between forecasts. The next slide shows the range of forecast for GB onshore wind and how they've changed over the last 6 months. And the chart for GB offshore wind would be pretty similar. Red dotted line is a December '24 blended and cannibalized GB onshore wind forecast adopted by TRIG. And the solid blue line is the blended forecast adopted at June '25, which has a pronounced reduction from the late 2020s to the early 2030s, which is a result of the lower electricity demand growth assumption of one forecaster. The lighter red lines show the highest and the lowest curves at December with TRIG taking an average of free curves. And the blue shading shows that range now. The range has increased with the lower end of the power price forecast range declining significantly. For a GB wind-only portfolio, the returns from the portfolio would reduce by around 2.2% if prices outturned on the lower forecast and would increase by 1.6% if prices outturned on the higher forecast. And our approach means we use a curve that is more cautious than many market participants, meaning we quote a commensurately lower valuation discount rate. And the final slide on power prices takes us back up to a portfolio level that shows the blended trick power curve for the portfolio as a whole, where you can see the reduction from the late 2020s to early 2030s. At the top right of the slide, we continue to provide data on our average assumed wholesale power prices. And on the bottom right, the donut show the proportion of our forecast revenues that are fixed per megawatt hour and exposed to merchant pricing. The point to note is the high proportion, which is fixed, around 80% for the next 12 months, 70% over the next 10 years, providing some protection against variation in power prices and good inflation linkage. And with recent inflation data coming in higher than expected, this inflation linkage remains important. Discount rates and inflation are addressed on this slide. This slide shows the risk-free rates or benchmark government bond yields relative to the portfolio discount rate. The overall portfolio weighted average discount rate has increased by 0.2% during the period to 8.8%, which implies a 5% risk premium of the U.K.-EU blended risk-free rate. We've increased the valuation discount rates supplied to European assets by 0.3% in the first quarter of the year, recognizing rising European government bond yields, and we applied a similar increase in U.K. discount rates at December 2024. This slide also shows the inflation assumptions. Outturn inflation for H1 '25 came in a little higher than the level forecast at the December '24 valuation, and we've marginally increased the full year expected inflation levels assumed for CPI and RPI in the U.K. for 2025. Our forecast inflation assumptions from next year onwards remain unchanged. The next slide shows the more significant items included in balance of portfolio return. We've now validated many of the technical enhancements installed on wind farms, across the portfolio and applied a 0.8p per share valuation increase to reflect increased energy yields. Buying back the company's own shares at a significant discount to NAV have added 0.6p per share over the period. And active revenue management refers to fixing power price revenues on projects. And we have updated REGOs and Guarantee of Origin forecasts that have declined, reflecting some reduced demand for these green certificates, both in the U.K. and in Europe. REGO and Guarantee of Origin revenues during H1 for the portfolio overall were around GBP 6 million, with typical achieved prices of around GBP 3 per REGO and up to EUR 2 for Guarantee of Origin certificates. This slide bridges the NAV per share during the period and analyzes the movements between macro items, actuals, which includes the impact of lower generation and active management in the period. We have NAV gains delivered principally from energy yield enhancements, revenue management and share buybacks. This slide shows our continuing focus on reducing the short-term RCF debt balance. During the period, we received EUR 100 million proceeds from the sale of a partial stake in Gode. And we invested GBP 39 million in new projects and GBP 40 million was applied to share buybacks, leading to a small overall decline in the RCF balance to GBP 301 million. And we expect to put in place a private placement in the autumn to term out around half of the RCF balance with a sculpted maturity profile that mirrors an amortization profile so the redemptions are aligned with expected future cash flows. We expect to agree future disposals -- sorry, further disposals over the course of the year and sales processes are progressing. We continue to target reducing RCF balance to around GBP 100 million. This next slide shows both TRIG's RCF and nonrecourse project level debt and provides some disclosure on TRIG's debt capacity. TRIG's conservative capital structure with a vast majority of our debt is long-term fixed rate and amortizing during fixed revenue periods provides us with the flexibility to take on more debt when it's right for the company and to improve shareholder returns. The long-term debt is repaying at a rate of around GBP 190 million per year. We repaid GBP 105 million of project level debt in H1 and GBP 85 million of project level debt is scheduled to be repaid in H2. Our project gearing level is 38%, is moderate, and we have gearing headroom in our structure and a good level of projects without gearing in place. We expect to term out around half the existing RCF in the autumn of a private placement. The group has a good level of gearing capacity that can be added, whilst retaining a comfortable level of total debt. Our revenue management program and our development program will provide further debt capacity in addition to the existing fixed revenues, enable debt to be carried for longer to optimize the capital structure and to grow shareholder returns. That brings me to the end of the financial items. I shall now hand over to Chris who will cover our operational performance.

Thank you. Hello. During the first half of 2025 TRIG generated 2.7 terawatt hours of electricity, enough to power the equivalent of 1.5 million homes and avoid 0.9 million tonnes of CO2. TRIG's portfolio of 80 projects is spread across the weather systems and markets of Western Europe in onshore wind, offshore wind, solar and batteries, with a wide range of manufacturers and models delivering diversification with multiple risks. Generation was 10% below budget in the period, which you can see split out by region in the table. Poor wind resource across the U.K., Germany and France was the main driver of low generation, partially offset by good wind levels in Sweden and strong solar resource in the U.K. These once again provide an example of our geographic or technological diversification, can shield the impact of any one region, once again, outperforming the wind-focused peer group. We remain confident of our long-term portfolio, P50, energy yield forecast. Wind levels aside, underlying asset performance or availability of the plant was in line with budgets. More economic curtailment has risen, as more negative electricity pricing has been experienced. During economic curtailments, generation has decreased to avoid the cost of generating, while prices are negative. To mitigate such periods, we continue to explore opportunities for additional ancillary services, with EUR 2 million of new contracts successfully secured during the period. Safety remains a top priority. With a 7-day lost time accident frequency rate per 100,000 hours at 0.21, in line with industry benchmarks. There's also been some really good ESG activities progressed during the period, many of which are set out within our recently published sustainability report. On this next slide, you can see how the weighted average wind and solar resource varies over time for our sites in each region compared to the long-term mean. With long-term averages calculated over a 30-year period, variances should be expected over shorter time frames. You can still fundamentally see that the weighted average dash line has calculated the TRIG's portfolio delivers a better result than would be available with concentrated geographical deployment in a single technology. You can also see how weather resource in the 6-month period is notably more variable than in recent full years, which could be expected to balance out in due course. Value enhancements are progressing well. The blade hardware installations, which we first trialed at 2 sites in 2022, are now being fully deployed across 201 megawatts in the U.K. and France, with improved yields already evident from day one. The all-important performance validation activities are due to complete by the year-end. Turbine software upgrades, which allow us to access and then adjust turbine controller settings are providing greater insight into the parameter changes available to increase generation at each site. These are being rolled out at a number of onshore U.K. and French sites. Wake steering, which started in 2019 as research at Altahullion in Northern Ireland, now has a validated yield uplift of 2.6%. By the end of this year, we expect to have rolled it out across 74 megawatts. Offshore power curve upgrades have now been delivered at 3 of our offshore sites, increasing the electricity generation at lower wind speeds. Trials of inverter optimizations were performed at 3 U.K. solar sites during winter, delivered an initial uplift of 1%, with the trial now extended through the hotter, higher generation summer period to provide a clearer view on the total energy yield uplift. These activities all contribute towards the GBP 70 million targeted value enhancements over the next 2 years. We continue to progress the development construction projects from our 1 gigawatt pipeline. Construction of the Ryton 78 megawatts, 2-hour battery project is progressing well, with all batteries now on site and connected ahead of energization and commissioning later this year. Cuxac obtained final investment decision for the repowering of the 12-megawatt French wind farm to be replaced by a 25 megawatt site, main contracts such as replacement turbines and the long-term electricity sales agreement all in place. Dismantling, removing of the existing turbines is scheduled for later this month, and good enabling works have already started. Full operation is scheduled for the second half of 2026. The next 3 consented battery projects in the development pipeline are Spennymoor, Drakelow and Templeton. These are at least of -- these are each of at least 2-hour duration and currently undergoing preconstruction works such as detail design and procurement tenders. Of these, Spennymoor will be subject to a final investment decision in the second half of this year. Repowering development works, such as performing environment studies, consultations and consenting activities also continue to progress at [ Cuxac ] in Southern France, alongside the continued operation of the existing site. There are a range of other development projects actively being progressed, which make good use of the manager skills, providing a source of future growth and value to the portfolio. Minesh?

Thanks very much, Chris. The Renewables Infrastructure Group has the conditions for capital growth and income growth. Whilst covering the dividend is expected to be tight this year on the back of low wind levels, our average dividend cover since IPO has been over 1.2x. And at the moment, this is after repaying over GBP 200 million of debt per annum. Our focus going into 2026 will be to restore dividend cover back above 1.1x, which is the level required to deliver capital growth when reinvestments are being undertaken at 10%-plus returns. And whilst the base case return expectation is 10% on today's share price, we have the levers to outperform this through portfolio rotation, revenue management and operational enhancements, which you've heard plenty from us today. So I'll conclude today's presentation with a recap of the key strategic drivers of TRIG. Firstly, TRIG benefits from a large diversified portfolio, which provides resilience to the portfolio's cash flows and delivered over 2x gross cash cover in the first half of the year. We also reduced debt by over GBP 100 million in the period. Secondly, responsible investment. We are focused on prudent capital allocation and responsible investment decisions, and we've continued to progress the buyback program with over 80 million shares repurchased to date. We've also progressed investment decisions whether it be share buybacks as a hurdle rate, including the Cuxac repowering. We continue to take a conservative approach to the balance sheet with over GBP 1 billion debt scheduled to be repaid over the next 5 years, providing us with maximum flexibility going forward. And finally, operational excellence, which is core to the management team's mindset seeking to achieve more with the projects that we have. So today, we've continued to highlight the strong underlying prospects for TRIG and that with a disciplined approach to investment management, we are optimizing the portfolio, reducing gearing and delivering attractive shareholder returns concurrently. Thank you for your time.

Thank you, Minesh. We'll start with questions in the room and then go from there.

It's Iain Scouller from Stifel. I've got a couple, if I may. Firstly, just on dividend cover. The low wind speeds, I mean, they were obviously in the first half of the year. But the impact is obviously going to come through in terms of cash flows and impact cover numbers in the second half. Can you just give us a bit more color on the lags and the timing of the cash flows and what's arising in that way? And also, too, I mean, if there is a scenario of an uncovered dividend in the second half, I mean, how will that actually be funded? Does it just simply mean that the RCF borrowings will be higher than they otherwise would have been? And then just secondly, the move up in the discount rate to 8.8%, is that in any way sort of a reflection of the sort of the market price exploration you've had ahead of the potential sales later in the year?

So a few questions there. Let's start with the dividend cover, and we can come back to the discount rate. I'll take the second half of that question. And then Phil, maybe you come in on the kind of mechanics of the cash flows. So I think if the dividend is mostly covered for the year, then yes, we can use the RCF to draw that down. And then the expectation would be to use retained cash in excess of the dividend in future periods to repay those drawings. So ultimately, over the long term, making sure that the dividend is covered from operational cash flows, not from capital. Phil, do you want to comment on mechanics?

So PPA payment terms are typically 1 to 2 months, nearer to 1 than 2, but not always -- the money is not always in within a month. And so the low wind speeds relatively low in January and February, but award win will be low in March and April. So as you say, some of that's going to be in H1, some of that's going to be in H2 because it won't all have flowed through by the time we were pushing money up in June. So I think maybe it's a half-on-half story, but some of that's going to be coming through. Hopefully, July and August will be windier.

And then on discount rates, I mean, I think as we said at year-end and the cases remain today, that transaction activity over the last 12 months has been pretty slow. So in the absence of many market transactions, we've looked to government bond reference rates. And with those being higher over time when we move the European discount rates up at the end of Q1, much like they were in the U.K. at the end of Q4 2024, we flowed that through into the discount rates. As we say, we're progressing transactions. As those come through, we will have live pricing and reflect on valuations accordingly.

Anything further in the room?

Chris, could you expand a bit on what power curve upgrades are and what the likelihood of that reaching a 3% enhancement?

Yes. So power curve upgrades ultimately, it's around the way -- the level of electricity generation, you get a different wind speed. So wind speeds vary between 3 and 25 meters a second or 4 meters a second to 25 meters. So that's the kind of range you're working in to generate electricity. And so in that front end of the curve, you can adjust the way in which the turbines respond to the wind, in the way they pitch, so that you capture more energy. So instead of being a sort of a curve like that, it becomes a little bit more fatter, higher in the front end and so you generate more. It's a tried and tested technology onshore wind and offshore wind. It does require some analysis in terms of loading and availability, from an availability warranty perspective as well and can be site specific to a certain extent as well. But yes, I've got confident about securing the benefit.

Thomas Martin at BNP Exane. Maybe just following on from that. I think you mentioned GBP 70 million of enhancements targeted, how much of that is contributing to the NAV at the present time? Is that all in? Or is that something that will come in as you go through this period?

Yes. So that's the GBP 19 million of that, which has been delivered in the first half of this year is contributing towards what we are hoping to achieve a GBP 70 million over 2025 and '26. So a really good start towards delivering that target.

And it will come in as you -- was the mechanics to be coming in, you have to sort of prove up the applicability of what you've tested to other sites and then you...

I mean it's a range. I mean the operational technical enhancements are some of that. And Chris and his team already have the enhancements they're rolling out this summer as well as the plan for next summer, and so that will start flowing through. But also, you may recall in the Capital Market seminar we set out that, that could also come from commercial enhancements. So corporate PPA and other power price fixings as we bring that through, that will contribute towards the GBP 70 million as well. And then we look at the development and construction pipeline, clearly a core part of the strategy is to take those development stage assets, create value by taking it through development, through construction and doing so derisk and using that lower discount rate for an operational asset, the resulting uplift also contributing towards that GBP 70 million. So you can see whilst this period has been kind of very much operational enhancements, delivering that GBP 19 million. We've got that corporate PPA coming. We've got Ryton being energized later this year. And then we have Cuxac starting repowering and coming into operations later next year. You can see already that runway towards achieving that GBP 70 million.

And on the technical elements, as you alluded to really important, you follow the right methodology and there's a range of different calculation approaches you can take and you can structure your -- yes, particularly on hardware, you can structure the way in which you deploy the hardware, so you get high confidence, low uncertainty on the deployment and the value you're getting from it. So yes, an awful lot of focus on getting that right with that low uncertainty level.

Can I maybe ask just another couple? How much will the upcoming FIDs add to your commitment spend, the FID in the second half of this year? Do you have that number roughly?

So spending more a 100-megawatt battery projects would typically be about GBP 60 million, GBP 65 million CapEx. And I think as we flagged, that's the main FID decision for the second half of this year. Next year, we've got a further 120 megawatts of batteries and then 10 megawatts of repowering. So 120 megawatts of batteries typically be about 80, 90 towards GBP 100 million of CapEx, particularly if the Templeton battery ends up being longer duration and then the Cuxac repowering probably about GBP 15 million, GBP 20 million of CapEx. I think before signing any of them off, what's key is benchmarking that versus share buybacks as the hurdle rate and making sure you saw the kind of debt capacity chart, we continue to be able to say that we can fund our growth investment activity from our own balance sheet and that's even before rotating the portfolio to realize more cash that can then be invested either into buying back shares or new investments on top of that.

Two other just quick ones. Have you quantified the insurance payments you expect to receive in the second half? And final one is just on the economic curtailments, are they concentrated in particular geographies more than others? Maybe you could just talk about that?

Do you want to take the insurance one?

Sure. We've had some in the first half, low single-digit millions for -- on grid curtailment last year and East Anglia One, we're expecting a fairly decent payment of about GBP 6 million in the second half, but we hope to get more than that eventually on East Anglia. But the money we get in the second half will match what we had assumed in our valuation. So we had assumed an insurance recovery for East Anglia One in our valuation, but not Hornsea One. The insurance process for Hornsea One is ongoing and will be protracted and painful. But hopefully, we will prevail with something, but I think that will be into next year.