DORE invests in hydropower
Published by Bella Weetch,
Editorial Assistant
Energy Global,
Downing has announced that Downing Renewables & Infrastructure Trust plc (DORE) has exchanged contracts to acquire its first investment, a portfolio of eight operational hydropower plants in central and southern Sweden. The portfolio is being acquired from Fortum Sweden AB (Fortum) for a purchase price of €64.5 million on a debt and cash free basis and the transaction is expected to be completed in February 2021.
Hydropower is a key energy source in the drive towards 100% renewable energy in Sweden by 2040 and is a key sector focus for DORE. The sector provides predictable long-term cash flows from assets that have much longer lives than other renewable energy technologies such as wind and solar.
The portfolio comprises eight hydropower plants across three different rivers in Sweden, with annual average production of over 100 GWh. It has an operating track record spanning more than five decades.
DORE, which raised £122.5 million in its IPO on the London Stock Exchange earlier in December 2020, is targeting investment in a diversified portfolio of renewable energy generating assets and other infrastructure assets in the UK, Ireland and Northern Europe.
The initial investment in the portfolio amounts to approximately 48% of the IPO proceeds. DORE anticipates that the portfolio will take-out leverage during the course of 2021, which will reduce the amount invested in it. Capital released would then be reinvested in the wider pipeline of opportunities available and further diversify the portfolio.
This project forms part of the further renewable energy and infrastructure investments identified by Downing LLP and disclosed in DORE’s prospectus dated 12 November 2020.
For more news and technical articles from the global renewable industry read our latest issue of Energy Global magazine.
Energy Global’s Winter 2020 issue
The Winter issue of Energy Global provides a range of technical articles covering technological advancements and future outlooks in the renewables sector, from companies including CorPower Ocean, Rystad Energy, Black & Veatch, Voltalia, FUERGY, and more.
Read the article online at: https://www.energyglobal.com/other-renewables/22122020/dore-invests-in-hydropower/
You might also like
Octopus Energy invests in Ocergy
Octopus Energy’s generation arm has invested in Ocergy, which aims to make floating offshore wind farms cheaper and faster to build.