Alternative investment company Aquila Capital has acquired six run-of-river hydropower plants from the Norwegian energy company BKK AS. The six plants, located near Bergen, produce approximately 70 GWh of electricity per year. The assets will be operated and managed by Småkraft AS, which is 100% financed by investment vehicles managed by Aquila Capital. Småkraft AS specialises in the operation and development of smaller run-of-river power plants. The purchase price has not been disclosed.
The Nordic region is an attractive market for hydropower investments with a large number of existing run-of-river power plants, a mature renewable energy sector and a stable legal framework. There is a growing number of opportunities for professional investors to increase their assets in this market as local energy suppliers are divesting assets in order to develop increasingly specialised strategies. The sale to Aquila Capital underlines this trend, reflecting BKK’s long-term plan to reposition itself as the owner of larger power plants.
Wenche Teigland, CEO at BKK Production, commented: “Through Småkraft AS Aquila Capital already has a significant presence in the local area. 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.”
Roman Rosslenbroich, CEO and co-founder of Aquila Capital, commented: "Run-of-river plants have among the best conversion efficiencies of all energy sources, with an efficiency factor exceeding 90%. By integrating the newly acquired plants into the portfolio managed by Småkraft, we can ensure very low operating costs."