Downing Renewables & Infrastructure Trust Plc (DORE) announced its commitment to acquire three hydropower plants in Sweden, along with their associated storage reservoirs, for approximately £5 million. The plants – Hagby, Gyttorp, and Hammarby – are located on the Norasjön River in Örebro County within Sweden’s SE3 electricity price region. The combined expected annual average production of the plants is around 7 GWh, with a potential increase to 7.5 GWh after planned upgrades.
Gyttorp and Hagby were constructed in 1946 and 1952, respectively, and underwent major refurbishments in 2007. Hammarby was built in 1982 and has recently received a significant upgrade.
The acquisition will expand DORE’s hydropower portfolio into the SE3 region and increase its total assets to 37, with a forecasted annual average production of around 222 GWh. The plants’ storage capabilities will contribute to what DORE describes as an “attractive revenue profile,” with significant production during winter months.
Tom Williams, Partner and Head of Energy and Infrastructure at Downing LLP, stated: “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.”
Earlier this week it was announced that Downing is partnering with HYDROGRID to improve the efficiency and sustainability of its hydropower operations in Sweden. This collaboration will focus on digitalising Downing’s 32 hydropower plants using advanced technology to boost performance and automation. The project is set to begin in September 2024.
