DORE signs long-term PPA for hydro plant in Iceland
Transactions - APRIL 8, 2024

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DORE signs long-term PPA for hydro plant in Iceland

by Kali Persall

Downing Renewables & Infrastructure Trust (DORE) has signed a long-term pay-as-produced power-purchase agreement (PPA) for its recently acquired Icelandic hydropower plant, Urðarfellsvirkjun.

The 1.1-megawatt run-of-river plant, which is located in south central Iceland, has an annual average production of around 8 gigawatt-hours. It has been operational since 2018 and derives its water from both natural springs and rainfall, according to a statement listed on the London Stock Exchange’s website.

DORE acquired the asset in January for a total investment of £5 million ($6.2 million).

The PPA is for 100 percent of Urðarfellsvirkjun’s electricity production, and the PPA counterparty is HS Orka, one of the largest electricity suppliers in the country. The agreement expires in December 2032, extending the previous contract by five years.

“We are pleased to have secured this long-term PPA at the Urðarfellsvirkjun plant,” said Henrik Dahlström,

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