REG - Downing Renew& Infra - Portfolio Update

Downing Renewables & Infrastructure TrustAnnouncement

12/08/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240812:nRSL9836Za&default-theme=true

RNS Number : 9836Z  Downing Renewables & Infrastructure  12 August 2024

12 August 2024

Downing Renewables & Infrastructure Trust plc

(the "Company" or "DORE")

Portfolio Update

Improved contract and annual revenue for Mersey Reactive Power

The Board of DORE is pleased to announce that Mersey Reactive Power Limited, a
UK-based, fully operational 200 MVAr shunt reactor which the Company acquired
in June 2023, has renegotiated its contract with the National Grid Electricity
System Operator ("NGESO") to provide additional reactive power to the
Merseyside area.

The shunt reactor is now available to be called upon by the network operator
for unlimited use throughout the year, which will allow DORE to benefit from
increased revenues under the availability-based Pathfinder Contract, part of
National Grid's Stability Pathfinder Initiative.

DORE expects the shunt reactor to increase its annual revenue by c.£300k per
annum (to be indexed with inflation) which is equivalent to c. 30% for the
remainder of the nine-year contract.

Revenue generation from Swedish Frequency Containment Markets

Further to the Company's announcement on 3 July 2024 (Downing Hydro AB
Pre-Qualifies For Frequency Containment Markets in Sweden
(https://www.londonstockexchange.com/news-article/DORE/dore-hydro-pre-qualifies-for-fcr-markets-in-sweden/16549499)
), DORE is pleased to confirm that the Gottne hydropower plant has been
earning revenues since 5 July following its pre-qualification for
participation in the Frequency Containment Reserve markets (FCR-N and FCR-D)
in Sweden.

Additionally, Downing Hydro AB ("DHAB") has submitted an application to the
Swedish Transmission System Operator for a second hydropower plant to
participate in the FCR-D market. Further sites will be submitted for FCR
pre-qualification as DHAB continues to roll out this programme across its
hydropower plants.

Blåsjön Nät AB

Blåsjön Nät AB ("Blåsjön") is a Swedish Electricity Distribution System
Operator acquired by DORE in July 2023.

The transmission and distribution of electricity in Sweden is considered a
natural monopoly, which means its tariffs and charges to customers are subject
to regulation. Ei, the Swedish regulator, accordingly implements revenue caps
for each distribution system operator for a regulatory period of four years.
Ei, has concluded the regulatory decision for Regulatory Period 4 (RP4,
2024-2027) for Blåsjön, which includes a capital investment programme of c.
SEK 33m (c. £2.4 million). The weighted average cost of capital (WACC) which
Blåsjön is allowed to apply to its charges is set at 4.5%. As a comparison,
Ei concluded a WACC of 2.3% for PR3 (2020 - 2023).

Blåsjön also announces the appointment of Jan Delin as its new Chief
Executive Officer following the retirement of Ingemar Persson after 27 years
in the role. Delin, who was previously CEO of regional Swedish utility Edsbyn
Elverk for ten years, has been a Board member of Blåsjön for almost five
years.

Tom Williams, Partner, Head of Energy and Infrastructure at Downing LLP,
commented: "We are pleased with the progress made by DORE's revenue
optimisation strategy, as we continue to enhance our grid and hydropower
assets and unlock further value from the portfolio. This progress is testament
to the ongoing work undertaken by our deeply knowledgeable and experienced
asset management team at Downing."

ENDS

 

LEI: 2138004JHBJ7RHDYDR62

 

Contact

 Downing - Investment Manager to the Company                         +44 (0)20 3954 9908

 Tom Williams

 Singer Capital Markets - Joint Corporate Broker                     +44 (0)20 7496 3000

 Robert Peel, Alaina Wong, Jalini Kalaravy (Investment Banking)

 Sam Greatrex, Alan Geeves, James Waterlow, William Gumpel (Sales)

 Winterflood Securities Limited - Joint Corporate Broker             +44 (0)20 3100 0000

 Neil Morgan (Corporate Finance)

 Darren Willis, Andrew Marshall (Sales)

 Cardew Group - Public relations advisor to the Company              +44 (0)20 7930 0777

 Tania Wild                                                          +44 (0)7425 536 903

 Henry Crane                                                         +44 (0)7918 207157

                                                                     DORE@cardewgroup.com (mailto:DORE@cardewgroup.com)

 

About Downing Renewables & Infrastructure Trust plc

DORE is a closed-end investment trust that aims to provide investors with an
attractive and sustainable level of income, with an element of capital growth,
by investing in a diversified portfolio of renewable energy and infrastructure
assets in the UK and Northern Europe. DORE has been awarded the London Stock
Exchange's Green Economy Mark in recognition of its contribution to the global
'Green Economy'.

The Board classifies DORE as a sustainable fund with a core objective of
accelerating the transition to net zero through its investments, compiling and
operating a diversified portfolio of renewable energy and infrastructure
assets to help facilitate the transition to a more sustainable future. The
Company believes that this directly contributes to climate change mitigation.

DORE's strategy, which focuses on diversification by geography, technology,
revenue and project stage, is designed to increase the stability of revenues
and the consistency of income to shareholders. For further details please
visit   www.doretrust.com (http://www.doretrust.com/) .

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  PFUBXGDISGBDGSG