Investec view: The Renewables Infrastructure Group (TRIG) has published a solid set of results. The NAV at 30 June was 114.3p/share, down 0.9% over the six-month period primarily due to the change in UK corporation tax which reduced the NAV by 3.2p/share. A provision applied to older assets with FiTs in France and FX movements further reduced NAV. These effects were largely offset by a 20bps reduction in discount rates and an increase in power price forecasts in the near term. The NAV total return in H1 was positive at 2.0%. We believe TRIG’s NAV valuation looks conservative versus a number of peers and an evolving macro backdrop, particularly with regard to its corporation tax, inflation and power price assumptions. TRIG has applied the increase in UK corporation tax from 2023 for the full duration of the projects’ economic lives which we believe is the correct approach. We note, however, that both UKW (Hold) and ORIT (Sell) have applied the change for a handful of years rather than over the full duration of the cashflows. Whilst we struggle to understand why some peers would assume that future tax regimes are any different in the future from those currently outlined, we understand that if TRIG had taken a similar approach, the NAV would be c.2p/share higher (or conversely, the NAVs of peers, and recent NAV performance would be meaningfully lower). TRIG’s valuation assumes UK RPI of 2.75% p.a. to 2030, and 2.0% thereafter. Most peers have increased their assumption to 3.0% to 2030 with UKW assuming an even higher rate of 3.3% to 2030, and 2.3% thereafter. We estimate that if TRIG had assumed UK inflation of 3% to 2030 and 2.25% thereafter (an increase of 25bps p.a.), the NAV would be c.1.5p/share higher. However, if the shift is not parallel due to a shorter time spike, i.e. in the period to 2030, then the effect on the NAV is potentially greater. Assuming UK inflation of 3.3% to 2030 and 2.3% thereafter, we estimate that TRIG’s NAV would be c.2.8p/share higher. With expectations for inflation increasing, TRIG’s NAV should be a beneficiary of actual inflation outperforming the assumption and/or future changes to the inflation assumption. We note that TRIG has already entered into inflation swaps to hedge some of its RPI and CPI exposure. Power prices are also recovering strongly and long-term forecasts may now have baked in all of the downside of renewables build-out and be future beneficiaries of the growth in demand for electricity as we transition towards a net zero economy. If UK power prices were 5-10% higher along the curve, we estimate this would add c.2.4-4.8p/share to TRIG’s NAV.