Aquila Capital buys six Norwegian hydropower plants from BKK AS

Aquila Capital announced its acquisition of six Norwegian hydropower plants from BKK AS. The plant will be operated and managed by Småkraft AS. The plant produce 70 GWh of electricity per year. Småkraft AS specialises in the operation and development of smaller run-of-river power plants in Norway. The purchase price has not been disclosed.

BKK Production CEO, Wenche Teigland said that through Småkraft AS Aquila Capital already has a significant presence in the local area. BKK have every confidence that these hydropower assets will be managed to the highest possible standard going forward. All agreements and commitments with landowners will continue in their existing form.

Aquila Capital CEO and Co-Founder, Roman Rosslenbroich said that Run-of-river plants have among the best conversion efficiencies of all energy sources, with an efficiency factor exceeding 90 percent. 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. By integrating the newly acquired plants into the portfolio managed by Småkraft, they can also ensure very low operating costs.

Image Source: Aquila Capital