Aquila Capital, the Alternative Investment Company, has acquired six Norwegian run-of-river hydropower plants from Norwegian energy company BKK AS for an undisclosed price.
Founded in 2001, Germany-based Aquila Capital bills itself as an Alternative Investment Company, and is a division of Aquila Group, an independent company specializing in asset management and investment services. Announced earlier this month, Aquila Capital revealed that it had acquired six run-of-river hydropower power plants — hydropower with little to no water storage — that produce approximately 70 gigawatt-hours of electricity annually. The six plants will now be operated and managed by Norway’s largest operator of small-scale hydropower plants, Småkraft AS, which was acquired by Aquila back in late 2015 from owners Statkraft, Agder Energi, BKK, and Skagerak Energi.
Hydropower provides the vast majority of Norway’s electricity production. According to Statistics Norway, the country’s national statistical institute, hydropower provided 96.3% of the country’s power production in February of this year. Further, according to Aquila, hydropower investments in Norway are a “highly attractive market” for investors, providing “a growing number of opportunities for professional investors to increase their exposure to this market as local energy suppliers are divesting assets in order to develop increasingly specialized strategies.”
“We are delighted to have acquired this portfolio of high quality hydropower plants,” said Tor Syverud, Head of Hydropower at Aquila Capital. “We have been active in Scandinavia for several years now during which time we have established an extensive local network and a strong pipeline of target investments.”
“Through Småkraft AS Aquila Capital already has a significant presence in the local area,” added Wenche Teigland, CEO at BKK Production. “We have every confidence that these hydropower assets will be managed to the highest possible standard going forward. All agreements and commitments with landowners will continue in their existing form.”
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