OSLO, NORWAY: Småkraft announced the acquisitions of twelve power plants generating 40 GWh in Mälardalen and in Hälsingland, Sweden.
The acquisitions were finalized Friday 1st of October. Småkraft’s entry into Sweden extends Småkraft’s ambitious and successful strategy in the consolidation of small hydro operations.
Sweden and Norway are part of the same power market, Nordpool, which eases the extension of services from Småkraft’s existing base in Bergen, Norway. Småkraft’s extensive knowledge of efficient operation of small power plants, makes this geographical expansion an exciting initiative that will create value for Småkraft, its owners, partners and contributes to the drive for affordable renewable energy in Europe.
“We aim to share our operational know-how of small hydro with the Swedish market,” says CEO of Småkraft, Terje Vedeler. “Many Swedish power plants require upgrades to meet changing environmental requirements.
The potential for more efficient operations and technical solutions within Swedish small hydro power is vast, requiring substantial investments. Småkraft AS is Europe’s largest small power operator with almost 150 small-scale hydropower plants. We can contribute with resources, experience, investments and fair collaborative models for stakeholders. “
In Norway, Småkraft cooperates with the local landowners that retain the water resources. The firm either lease the water resources for a period, offers co-ownership, or finds other collaboration models. The long-term stakeholder model is seen as an attractive innovation within the Swedish small power market. Småkraft’s technical and financial expertise mean that otherwise challenging projects become feasible while local communities maintain ownership of the valuable natural resource. Småkraft identifies the increase of renewable energy production from existing production facilities as one of its main business goals.
The Strömfallet and Streamgate North- portfolios represent a very good starting point for our investments in Sweden. They are large enough to achieve scaling effects. Furthermore, we have brought with us local partners. This gives us local expertise crucial to achieve good operations. This time we have initiated a collaboration with Henrik Sandberg, who in addition to being a seller of the Strømfallet portfolio, also has been heavily involved in our position with Streamgate North. Henrik will continue to work with Småkraft. He will be the first employee in our Swedish organization and play a key role in further building our business in Sweden.
“I am very happy to continue this journey together with Småkraft,” says Henrik Sandberg. “I am convinced that the long- term focus, expertise and resources that Småkraft offers will benefit the entire small- scale hydropower industry.”
The seller of the Streamgate North- portfolio is Orsa Besparingsskog. “After a long process, we are happy that we have reached an agreement with Strömfallet Småkraft AB on this deal. We have been looking for a buyer who has the ability and competence to own and operate small-scale hydropower, and we believe that Strömfallet Småkraft AB is such a company,” says Martin Moraeus, Chairman of the general board.
The acquisitions are financed with 100% equity added to the parent in the Småkraft- group, Småkraft AS. The upgrades of the facilities will be financed by new debt. Småkraft will collaborate with forward-looking and sustainable capital environments that can offer good conditions for promoting environmentally friendly, renewable energy in Sweden and the EU.