Downing Renewables to acquire three Swedish hydropower plants

Downing Renewables & Infrastructure (DORE) announced its commitment to acquire three hydropower plants in Sweden on Monday, expanding its renewable energy portfolio.

The London-listed firm said the acquisition, valued at around £5m, included the Hagby, Gyttorp, and Hammarby plants, all located on the Norasjön River in Örebro County, within Sweden's SE3 price region.

It said the combined annual average production of the plants was expected to be around seven gigawatt-hours, with the potential to increase by an additional 0.5 gigawatt-hours following planned upgrades.

The Hagby and Gyttorp plants, originally constructed in 1946 and 1952 respectively, were extensively refurbished in 2007, while the Hammarby plant, built in 1982, recently underwent a significant upgrade.

Downing said the acquisition was a strategic expansion into a new geographical area, enhancing its revenue potential, particularly during the winter months when the storage capabilities of the plants were most beneficial.

Upon completion, DORE’s hydropower portfolio would grow to 37 assets, with a projected annual average production of around 222 gigawatt-hours.

“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,” said Tom Williams, partner and head of energy and infrastructure at Downing LLP.

“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.”

At 1034 BST, shares in Downing Renewables & Infrastructure were down 0.15% at 78.08p.

Reporting by Josh White for Sharecast.com.