Merger Creates Norway's Biggest Small Hydro Player

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Two of Norway's leading hydropower companies, Småkraft (Bergen) and Norsk Grønnkraft (Oslo), are to merge to create the country's largest small hydro player and the largest operator of small-scale hydropower plants in Europe.

Investment firm Aquila Capital (Hamburg, Germany), which owns both companies, has confirmed the merger will be in place by January 2017. The new company will be known as Småkraft and consist of 90 operational hydropower plants with an annual production of just under 1 terawatt hour (TWh). A separate company called Småkraft Utbygging will be created to focus on the construction and rehabilitation of small-scale hydropower plants.

"The merger is the next logical step to further consolidating our existing hydropower operations in Norway," explained Oldrik Verloop, managing director at Aquila Capital and board member at Småkraft. "Also, with the formation of a dedicated hydropower construction firm, we aim to build five to 10 plants every year and with that contribute to increasing the share of renewables in the European energy mix. We are confident that Småkraft will be one of the leading hydropower players in Europe and these developments underline our interest and engagement in the sector."

Sigbjørn Rabbe, Head of Operations at Småkraft AS, said: "Aquila Capital is committed to sustainable operations and growth in the Norwegian hydropower market. As well as the obvious natural resources in the country there is a deep pool of local expertise to manage the plants, which we use at every opportunity. We are determined to build the trust of local communities, adding value and ensuring the highest standards of safety and respect for the environment while at the same time recognising the landowner's rights."

Småkraft has developed and commissioned 50 hydropower stations and currently has nine projects under construction and 60 projects in development.

Aquila Capital manages over 100 hydropower plants with an installed capacity of approximately 400 megawatts (MW). It acquired Småkraft last year from majority owner Statkraft AS (Oslo, Norway), the country's leading energy company. Norway gets almost all of its electricity from hydropower. The largest hydro plant is Kvilldal power station in the municipality of Suldal, with an installed capacity of 1,240 MW.

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