LONDON: Downing Renewables & Infrastructure Trust plc (DORE) has committed to acquire three Swedish hydropower plants and their associated storage reservoirs.
The combined expected annual average production is c. 7 GWh, with a potential increase of 0.5 GWh after further upgrades have taken place. The total investment is expected to be c. £5m.
All three hydro plants, Hagby, Gyttorp and Hammarby, are located on the Norasjön River in the Örebro County in the SE3 price region in Sweden. Two of the plants – Gyttorp and Hagby – were built in 1946 and 1952 respectively and underwent extensive refurbishment in 2007. Hammarby was built in 1982 and recently underwent a significant upgrade.
The transaction offers a strategic opportunity to extend the current portfolio into a new geographical area of SE3. The three hydropower plants benefit from storage and consequently allow the portfolio to benefit from an attractive revenue profile, with a significant part of its production during the winter months.
Once the transaction completes, the Company’s hydropower portfolio will have 37 assets with a forecast annual average production of c. 222 GWh.
Tom Williams, Partner, Head of Energy and Infrastructure at Downing LLP, commented: “We are excited to expand our hydropower portfolio across the SE3 region in Sweden with the addition of these three new hydropower plants on the Norasjön River. Hydropower continues to be a key element of our investment strategy in Sweden and, by bringing these plants into DORE’s portfolio, we can benefit from cost efficiencies and our digitalisation and revenue optimisation programmes.”
Downing Renewables & Infrastructure Trust acquires hydropower plants in Sweden