Norwegian companies Småkraft and Norsk Grønnkraft are to be merged by their owner, German hedge fund Aquila Capital.
The merger is expected to be effective from January 2017 and the new entity will be known as Småkraft and consist of 90 operational hydropower plants. Simultaneously, a separate company, Småkraft Utbygging, will be formed to solely focus on the construction and rehabilitation of small-scale hydropower plants.
Aquila Capital managing director Oldrik Verloop said the merger “is the next logical step to further consolidating our existing hydropower operations in Norway. Also, with the formation of a dedicated hydropower construction firm we aim to build five to ten 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.”
Michaela M. Eder von Grafenstein, head of investment management real assets at Aquila Capital, said that the merger “comes at a time when institutional investors’ interest in renewable energy is increasing significantly. We are looking forward to contributing to the further growth of renewable energy in Norway.”