Downing Renewables & Infrastructure Trust (DORE) is investing EUR 25 million to buy two hydropower portfolios in Sweden.
The London-listed private equity fund said it had agreed to buy a 12GWh portfolio of hydropower plants from ÄSI Kraft located in the SE3 electricity pricing zone for EUR 6 million and a 36GWh portfolio located in the SE2 zone for EUR 19 million from AB Edsbyn Power plant.
The first portfolio comprises five hydropower plants located on three different rivers. The second portfolio comprises four hydropower plants located in one and the same river.
The hydropower plants are located in and around Edsbyn in central Sweden.
DORE said that 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, head of investment at 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 take advantage of additional seasonal storage reservoirs in SE2.
They will also allow DORE to take advantage of the economies of scale that come with further growth, Williams said.
He added: “Hydropower is often forgotten as a source of renewable energy, but it will be a key part of the energy transition as it is possible to retain energy in the reservoirs and sell when supply from renewable sources elsewhere is low.
“This helps reduce price volatility and maximizes the value of the energy stored for end users and our investors.”
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