Downing Renewables & Infrastructure Trust plc (DORE) is pleased to announce the acquisition of a portfolio of operational solar PV assets located in the UK for £12.6 million. The 13.0 MWp portfolio of two ground-mounted sites and approximately 1,600 commercial and residential installations benefits from high levels of feed-in tariffs and renewable obligation certificate subsidies.
The new portfolio will increase the total number of DORE's managed solar assets to c.4,800 with a total annual average production of 101 GWh, which is the equivalent of powering c.35,000 UK homes. This continues to support the DORE's highly diversified investment strategy which is designed to increase the stability of revenues and consistency of income to shareholders.
DORE will remain unaffected by the UK's Electricity Generator Levy ("EGL") following this acquisition, with DORE having significant headroom in the EGL's annual allowance.
Following this acquisition, DORE has deployed substantially all of its remaining cash and expects to draw on its £40 million revolving credit facility to make future acquisitions.
Tom Williams, Partner, Head of Energy & Infrastructure at Downing LLP, said: "The expansion of our UK solar portfolio with a further 1,600 installations highlights a continued commitment to portfolio diversification. This portfolio was particularly attractive due to its high levels of fixed, inflation-linked revenues. After a strong year of performance and electricity generation in 2022 from our UK solar portfolio, we feel confident this acquisition can help continue to provide our investors with sustained, strong and stable returns."
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