Downing Renewables & Infrastructure Trust Plc (DORE) recently took a significant step in strengthening its renewable energy portfolio by announcing plans to acquire three hydropower plants in Sweden. The hydropower plants—Hagby, Gyttorp, and Hammarby—along with their associated storage reservoirs, are set to be acquired for approximately £5 million. These installations are located on the Norasjön River in Örebro County within the SE3 electricity price region. Once integrated, these acquisitions will boost DORE’s portfolio to a total of 37 assets, which collectively hold an anticipated annual average production capacity of around 222 GWh. The newly added Swedish hydropower plants are expected to produce an average of 7 GWh annually. There is potential for upgrades that might increase their combined output to 7.5 GWh, demonstrating the strategic importance of these assets.
Gyttorp and Hagby hydropower plants were originally constructed in 1946 and 1952, respectively, but underwent major refurbishments in 2007. Hammarby, built later in 1982, has also seen significant upgrades recently. The strategic expansion into the SE3 region marks a robust growth curve for DORE’s hydropower assets, providing possibilities for cost efficiencies and improvements through digitalization and revenue optimization. The acquisition is in line with DORE’s long-term strategy to enhance its renewable energy portfolio by integrating well-positioned assets that promise not only steady production but also opportunities for technological advancements.
Strategic Importance of Acquisition
Tom Williams, who serves as Partner and Head of Energy and Infrastructure at Downing LLP, highlighted the strategic importance of this acquisition for DORE’s investment plans in Sweden. Williams elaborated that integrating these hydropower plants would bolster DORE’s operational excellence and financial performance, especially crucial during the winter months when hydropower production becomes essential. By leveraging the storage capabilities and revenue profiles of these new assets, DORE aims to achieve more sustainable growth and operational efficiencies.
In line with this acquisition, DORE also announced a collaborative effort with HYDROGRID to elevate the efficiency and sustainability of its hydropower operations. This partnership is expected to implement advanced technological solutions that will digitalize Downing’s entire hydropower portfolio, starting from September 2024. The digitization aims to optimize performance and automation, ushering in a new era of technologically advanced and sustainable hydropower operations for DORE.
Enhancing Operational Efficiency Through Technology
Downing Renewables & Infrastructure Trust Plc (DORE) recently made a significant move to enhance its renewable energy portfolio by announcing plans to acquire three hydropower plants in Sweden for about £5 million. These plants—Hagby, Gyttorp, and Hammarby—are located on the Norasjön River in Örebro County’s SE3 electricity price region. This acquisition will expand DORE’s portfolio to 37 assets, with an anticipated annual production capacity of roughly 222 GWh. The Swedish hydropower plants are expected to produce an average of 7 GWh per year, with potential upgrades possibly increasing output to 7.5 GWh, highlighting their strategic importance.
Gyttorp and Hagby were initially constructed in 1946 and 1952, respectively, and received major refurbishments in 2007. Hammarby, built in 1982, has also undergone recent significant upgrades. This expansion into the SE3 region signifies robust growth for DORE’s hydropower assets, offering opportunities for cost efficiencies, digitalization, and revenue optimization. The acquisition aligns with DORE’s long-term goal of strengthening its renewable energy portfolio with strategically positioned assets that ensure consistent production and opportunities for technological advancements.
