Downing Renewables & Infrastructure Trust (DORE) is acquiring a UK power management plant, a deal that further diversifies the London-listed infrastructure trust’s portfolio and provides it with a new long-term revenue stream.
DORE said it has agreed to buy Mersey Reactive Power for around £11m (€12.9m). The 200MVAr shunt reactor, which has an expected asset life of 40 years, became operational in May 2022.
Mersey Reactive Power in Frodsham, Merseyside supports Britain’s electricity system in voltage management, providing increased network resilience, reducing costs to consumers and lowering carbon emissions. The plant has an initial fixed-priced, inflation-linked, availability-based contract with National Grid ESO until 2031.
DORE said the acquisition will provide a new, long-term, revenue stream for the trust “that is not derived from the sale of power on the wholesale markets”.
Tom Williams, partner and head of energy and infrastructure at Downing, said: “The opportunity to further diversify DORE’s portfolio and provide essential grid services in the UK is one that we could not overlook, and we are excited by our pipeline of potential opportunities in this sector of the energy market. Voltage management and grid stability are critical to the future success of decarbonisation.
“This attractive acquisition, when taken with other recent acquisitions by the company, increases the company’s long-term fixed revenues in the UK, helping to provide our investors with diversified and stable returns.”
DORE is a closed-end investment trust that invests in a diversified portfolio of renewable energy and infrastructure assets in the UK and Northern Europe.
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