Downing Renewables & Infrastructure Trust PLC (DORE) has successfully acquired five hydropower plants situated in various locations across Sweden, marking another significant addition to its growing renewable energy portfolio.
With a collective expected annual average production of approximately 9GWh, the strategic acquisition was valued at around £6.0 million ($6.7 million). Downing Hydro AB's long-term debt facility facilitated the funding for the transaction, which concluded in December 2023.
The acquired assets are positioned in Sweden's SE2 and SE3 pricing regions, boasting substantial reservoir capacity that enhances water storage capabilities and overall production efficiency.
One of the hydropower plants, situated in the SE3 pricing region, is located along the Säveån river in south-west Sweden. This addition introduces a new geographical area and river system to DORE's diversified portfolio, further strengthening its presence in different water catchment areas.
DORE's hydropower portfolio now comprises a total of 34 assets, with a projected annual average production of approximately 215GWh.
In a bid to enhance operational capabilities, Downing Hydro AB has initiated a comprehensive roll-out of software and hardware upgrades across its hydropower plant portfolio. These upgrades enable the relevant plants to participate in the frequency containment markets, complementing their core electricity generation activities.
As of the end of December 2023, hardware installations have been completed at 20 plants, with the first pre-qualification submission to the Swedish Transmission Operator (SvK) already underway. The remaining sites are slated for pre-qualification submissions during the first quarter of 2024. The Company anticipates the approval process will be finalized by the first and second quarters of 2024, with the majority of facilities phased into the Frequency Containment Reserves (FCR) markets.
