The Norwegian electricity utility anticipates closure of the transaction by mid-year, subject to conditions and approvals, which would give it 95% ownership of Yesil Energi.

Yesil Enerji is owned by Turkish diversified industrial group Global Investment Holdings.

Statkraft said the total budget for development and construction of Yesil Enerji’s seven projects is in the range Euro600M-Euro700M (US$813M-US$949M). In total, the portfolio is expected to generate approximately 2100GWh of electricity per year.

Yesil Enerji has a 20MW plant under construction, which is due to be commissioned later this year. The other projects are not due to commence development until at least next year, commented Statkraft, however four have generation licences and the others have applied for them.

The generation licences are awarded by the country’s Energy Management Regulatory Authority (EMRA).

Statkraft recently completed a major asset swap with European utility E.ON, which increased its hydro power portfolio yet further. It is also active in Latin America and Asia, and the acquisition of the controlling equity stake in Yesil Enerji is a strategic entry into the Turkish market.

Other companies that have taken positions in hydro power in Turkey over the last couple of years include German utility EnBW Energie Baden-Wurttemberg’s deal with Borusan Holding, announced earlier this month, and GE Energy Financial Services’ development pact with Gama, signed in 2007.