DORE set to buy three hydropower plants in Sweden

London-based Downing Renewables and Infrastructure Trust Plc (LON:DORE) plans to invest GBP 5 million (USD 6.6m/EUR 5.9m) to buy three Swedish hydropower plants whose combined annual production is expected to reach about 7.5 GWh after certain upgrades.

DORE said on Monday that it has committed to acquiring the facilities, Hagby, Gyttorp and Hammarby, along with their associated storage reservoirs. Excluding the upgrades, the plants are expected to have an annual average production of about 7 GWh. A significant part of the production occurs during the winter months, offering “an attractive revenue profile,” the firm said.

The three plants are located on the Norasjön River in the SE3 price region in Sweden – one of the four electricity price zones into which the country is divided. The deal, therefore, allows DORE to expand its current portfolio into a new geographical area of SE3.

Following the acquisition, DORE’s hydropower portfolio will consist of 37 assets with a forecast annual average production of around 222 GWh.

Gyttorp and Hagby underwent extensive refurbishment in 2007 after they were built in 1946 and 1952 respectively. Hammarby was constructed in 1982 and has recently gone through a significant upgrade.

(GBP 1 = USD 1.318/EUR 1.189)

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