Six run-of-river hydropower plants near Bergen, Norway, are to join investment firm Aquila Capital’s hydropower portofolio following their acquisition from Norwegian energy company BKK AS.

The power plants, which produce approximately 70GWh of electricity per year, 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 in Norway

"We are delighted to have acquired this portfolio of high quality hydro power plants,” commented 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."

The Nordic region is a highly 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 are 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. The sale of BKK AS to Aquila Capital underlines this trend as it is reflects the former’s long-term repositioning towards owning larger power plants.