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Downing Renewables & Infrastructure Trust plc (LSE:DORE) has provided an update on recent developments that underscore its commitment to enhancing revenue streams and expanding its renewable energy portfolio. The Company has successfully renegotiated its contract for the Mersey Reactive Power Limited shunt reactor and made notable progress with its hydropower assets.
Contract Renegotiation with National Grid
DORE is pleased to announce that Mersey Reactive Power Limited, a fully operational 200 MVAr shunt reactor acquired by the Company in June 2023, has renegotiated its contract with the National Grid Electricity System Operator (NGESO). This new agreement allows the shunt reactor to be called upon for unlimited use throughout the year to provide reactive power to the Merseyside area.
Under the availability-based Pathfinder Contract, part of the National Grid's Stability Pathfinder Initiative, this renegotiation is expected to significantly boost DORE’s revenues. The Company forecasts an increase in annual revenue of approximately £300,000, which will be indexed to inflation. This represents a 30% revenue uplift for the remainder of the nine-year contract, reflecting the enhanced value of the asset and its expanded operational capacity.
Hydropower Revenue and Expansion
In addition to the positive developments with the shunt reactor, DORE is pleased to report that the Gottne hydropower plant has been earning revenues since July 5, 2024. The plant has been pre-qualified to participate in Sweden's Frequency Containment Reserve markets (FCR-N and FCR-D), which is expected to contribute additional revenue to DORE’s portfolio.
Furthermore, Downing Hydro AB (DHAB), a subsidiary of DORE, has submitted an application to the Swedish Transmission System Operator for a second hydropower plant to join the FCR-D market. This move is part of DHAB’s broader strategy to expand its participation in frequency containment reserves across its hydropower plants. Additional sites will be submitted for FCR pre-qualification as DHAB continues to enhance its operational footprint in the renewable energy sector.
