DAVY VIEW

The announcement that RESS 1 will provide subsidy support to an additional 1.25GW of renewable energy projects (c.30% of the renewable installed base at end-2019F) provides strong support for the next wave of renewable energy assets investment and development in Ireland. For Greencoat, it should comfortably add >€1bn of additional growth opportunities over the next two to three years (current gross asset value of Irish assets c.€1bn). With its experience partnering and co-owning assets with many large utilities, the potential to materially expand its portfolio and cashflow generation over the medium term looks very attractive. We reiterate our ‘Outperform’ recommendation.