Hydro and Lyse announced in October 2020 a plan to merge part of their respective hydropower production in southern Norway into a joint hydropower company. The transaction was completed on December 31.
As part of the transaction, the companies have 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 9.5 TWh, of which Hydro owns 25.6 percent and Lyse 74.4 percent. As part of the agreement, Hydro remains operator of the RSK assets and is now in addition assuming operatorship for Lyse's until now fully owned 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 13.6 TWh in a normal year. Based on equity shares, Hydro's annual power production is 9.4 TWh in a normal year.
Investor contact:
Line Haugetraa
+47 414 06 376
line.haugetraa@hydro.com
Media contact:
Halvor Molland
+47 929 79 797
halvor.molland@hydro.com
