Downing Renewables & Infrastructure Trust (DORE) is investing €25m to buy two hydropower portfolios in Sweden.
The London-listed closed-end investment trust said it has agreed to buy a 12GWh portfolio of hydropower plants from ÄSI Kraft located in the SE3 electricity pricing zone for €6m and a 36GWh portfolio located in the SE2 zone for €19m from AB Edsbyn Elverk.
The first portfolio comprises five hydropower plants located on three different rivers. The second portfolio includes four run-of-river hydropower plants situated on a single river.
The hydropower plants are located in and around the Swedish town Edsbyn in central Sweden.
DORE said the acquisitions increase the total number of managed Swedish hydropower plants to 17, with a total annual average production of 157GWh.
Tom Williams, partner, head of energy and infrastructure at Downing LLP, the investment manager to DORE, said the acquisitions will increase the company’s hydropower production by just under 50% and add three more directly controlled storage reservoirs in SE3 and benefit from further seasonal storage reservoirs in SE2.
They will also allow DORE to benefit from the economies of scale that come with further growth, Williams said.
He added: “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.”
To read the latest edition of the latest IPE Real Assets magazine click here.
