The planned merger of Norwegian firms Hydro and Lyse’s hydropower production initially announced in October 2020 has been completed.

On 31 December 2020, the companies merged power production assets in the south-west region of Norway through the establishment of a new company, Lyse Kraft DA, which includes Hydro’s hydropower assets Røldal-Suldal Kraft (RSK) and the majority of Lyse’s power production portfolio.

The agreement is based on the framework set out in the Norwegian Waterfall Rights Act.

Lyse Kraft DA has a normal annual power production capacity of 9.5TWh, of which Hydro owns 25.6%  and Lyse 74.4%. As part of the agreement, Hydro remains operator of the RSK assets and is now in addition assuming operatorship for Lyse’s hydropower plants. Lyse will be responsible for market activities and water disposal.

Following the transaction, Hydro is Norway’s third-largest operator of renewable power, with a combined renewables production of 13.6TWh in a normal year. Based on equity shares, Hydro’s annual power production is 9.4TWh in a normal year.