Downing Renewables & Infrastructure Trust (DORE) has snapped up two portfolios of Swedish hydropower plants for €25m – with the deal expected to be closed within a week.
The acquired sites will provide an expected 48 gigawatt hours of electricity (GWH), and will further boost DORE’s renewable plans in the country, taking the number of Swedish hydropower plants owned by the trust to 17.
The total annual average production of energy from its Swedish sites now totals 157 GWh.
DORE has acquired a 36 GWh portfolio located in the SE2 zone for approximately €19m from AB Edsbyn Elverk, and a 12 GWh portfolio of hydropower plants from ÄSI Kraft AB for €6m.
The purchases have been largely funded through drawdown on its Downing Hydro AB (DHAB) Swedish hydropower portfolio debt facility signed in November 2021.
DORE believes the acquisitions will strengthen its overall strategy, which focuses on diversification by geography, technology, revenue and project stage, designed to increase the stability of revenues and the consistency of income to shareholders.
Tom Williams, partner and head of energy and infrastructure at DORE said: “Hydropower is often forgotten as a source of renewable power, but it will be key part of the energy transition as it is possible to hold energy back in the reservoirs and sell when supply from renewable sources elsewhere is low. This helps reduce price volatility and maximises the value of the energy stored for end users and our investors.”