SEB Nordic Energy Fund, through its operating platform Locus Energy, has acquired Hestenes Kraft, a small-scale hydropower plant located in Norway’s NO3 price area.
The brownfield plant has been operating since 2016 and has delivered average historical production of approximately 5.9GWh per year.
Hestenes Kraft is located close to other hydropower plants in Locus Energy’s portfolio. The company said the acquisition supports its strategy of developing regional clusters of assets and enables coordinated portfolio optimisation across the area.
According to the company, integrating Hestenes Kraft into the existing portfolio in NO3 is expected to increase production volumes and create cost synergies. The plant will also strengthen Locus Energy’s operational presence in the region and support overall portfolio performance.
The company said managing assets within the same geographical and market context allows it to optimise dispatch planning, resource allocation and market participation at a portfolio level rather than on a stand-alone basis.
As an operational brownfield asset with established permits and production history, the plant is expected to provide immediate and predictable cash flow with limited development risk.
Hestenes Kraft will be integrated into Locus Energy’s centralised portfolio management and trading framework covering Nordic price areas.
“Hestenes Kraft strengthens our existing foothold in Norway and further consolidates our hydro cluster in NO3,” commented Kristoffer Kjelstadli, Managing Director Norway at Locus Energy. “By adding a brownfield asset in close proximity to our current portfolio, we increase production volumes while capturing meaningful cost synergies across operations, maintenance and market interface. Clustering supports a stronger and more resilient portfolio performance. We also value the constructive collaboration with local landowners and partners, which is fundamental to our long-term ownership approach.”
The acquisition was made on behalf of SEB Nordic Energy, managed by SEB Asset Management, with Locus Energy acting as the operating platform.
Elin Löfblad, Portfolio Manager at SEB Asset Management, added:“This investment further strengthens the investment case for SEB Nordic Energy. Through our active ownership model and portfolio integration strategy, we enhance exposure to diversified renewable production across Nordic price areas while improving risk-adjusted returns. Brownfield hydropower assets with stable production profiles contribute predictable cash flows, and when integrated into a larger, optimised portfolio, they strengthen both resilience and long-term value creation for our investors.”
Locus Energy said the transaction forms part of its strategy to build a diversified Nordic renewable energy portfolio through acquisitions, active ownership and portfolio optimisation.
