LONDON, UK: DORE, a UK-based renewable energy company, has announced the acquisition of Blåsjön Nät AB, a Swedish electricity distribution system operator, for about £7 million.

Blåsjön delivers 16-18 GWh of electricity per year to around 1,500 customers in northern Sweden, through a network of 436km of overhead lines and substations. The company operates a licensed monopoly in a highly regulated environment, generating stable and predictable cashflows that are linked to inflation and interest rates.

This is DORE’s second acquisition in the grid and grid stability services sector, following its purchase of a 50% stake in a Finnish electricity distribution company in March. The acquisition is part of DORE’s strategy to diversify its portfolio and increase the consistency of income to shareholders. The acquisition will be funded through DORE’s revolving credit facility, which has now reached £18 million.

Tom Williams, Partner and Head of Energy & Infrastructure at Downing LLP, the investment manager of DORE, said: “The accretive acquisition of Blåsjön highlights our continued ambition to further diversify DORE’s portfolio. By investing in long-life assets like electricity distribution grids, the Company can access long term, inflation-linked revenues that are not dependent on the sale of electricity in the wholesale market. We are excited by this and potential future investments that the Company can make in this sector.”

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