Downing Renewables & Infrastructure Trust PLC (LSE:DORE) said it was "pleased" with the progress of its revenue optimisation programme as it unveiled two positive updates.
The first involved the Mersey Reactive Power shunt reactor, acquired in June last year. A renegotiated contract with the National Grid is expected to increase DORE’s annual revenue by approximately £300,000, a 30% boost for the remaining nine years of the contract.
In Sweden, DORE’s Gottne hydropower plant has begun earning revenue after pre-qualifying for the Frequency Containment Reserve markets (FCR-N and FCR-D) on July 5.
Downing Hydro AB, DORE’s Swedish subsidiary, is also seeking approval for another hydropower plant to join the FCR-D market, with plans to expand this initiative to more sites.
DORE also provided an update on Blåsjön Nät AB, a Swedish Electricity Distribution System Operator acquired last July.
The Swedish regulator, Ei, has set a capital investment programme of approximately £2.4 million for Blåsjön during the 2024-2027 regulatory period, with a weighted average cost of capital of 4.5%. This is an increase from the 2.3% WACC set for the previous regulatory period.
"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," said Tom Williams, the head of energy and infrastructure at Downing LLP, which manages the fund.
"This progress is testament to the ongoing work undertaken by our deeply knowledgeable and experienced asset management team at Downing."