Germany-based investment firm Aquila Capital this week announced its acquisition of six Norwegian hydropower plants from energy supplier BKK.
The run-of-river plants, located near Bergen in the west of the country, together produce around 70 GWh per year.
The purchase price was not disclosed.
Hydropower plant developer Småkraft will run and manage the plants. Småkraft, which is Norway’s largest operator of smaller run-of-river plants and has around 45 plants in operation, was acquired by Aquila Capital in 2015.
Aquila Capital said the sale reflects BKK’s “long-term repositioning towards owning larger power plants”.
Roman Rosslenbroich, Aquila Capital’s co-founder and CEO, added: “Run-of-river plants have among the best conversion efficiencies of all energy sources, with an efficiency factor exceeding 90 per cent. They use proven, mature technology that, if well maintained, can produce energy for many decades.
“The long-term stable cash flows produced by hydropower are uncoupled from volatile carbon energy types as well as other traditional asset classes such as equities and bonds, providing investors with strong diversification benefits.”