Downing Renewables & Infrastructure Trust has signed an agreement to acquire Mersey Reactive Power, a UK-based, fully operational 200 MVAr shunt reactor, for £11.0 million. Completion is subject to Ofgem approval.
The Merseyside asset became operational in May 2022 and was the first project to go live as part of the National Grid’s Stability Pathfinder initiative. The shunt reactor absorbs reactive power to increase the efficiency of the network and manage high voltage levels.
The project, which has an expected asset life of 40 yearshas a fixed priced, inflation-linked, availability-based contract with National Grid ESO until 2031.
DORE said acquisition will give it a new long-term revenue stream that is not derived from the sale of power on the wholesale markets. DORE added it will continue to seek similar opportunities in the grid services sector.

Tom Williams, Partner, Head of Energy & Infrastructure at Downing LLP, said: “The opportunity to further diversify DORE’s portfolio and provide essential grid services in the UK is one that we could not overlook, and we are excited by our pipeline of potential opportunities in this sector of the energy market. Voltage management and grid stability are critical to the future success of decarbonisation. This attractive acquisition, when taken with other recent acquisitions by the company, increases the company’s long-term fixed revenues in the UK, helping to provide our investors with diversified and stable returns.”