Norsk Hydro and Lyse announce they have completed a planned merger of power production assets in the southwest region of Norway through the establishment of Lyse Kraft DA.
In October 2020, the two companies announced a plan to merge part of their respective hydropower production in southern Norway into this joint hydropower company. As part of the transaction, completed Dec. 31, 2020, the companies have merged power production assets that include 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% and Lyse 74.4%. As part of the agreement, Hydro remains operator of the RSK assets and is now assuming operatorship for Lyse’s hydropower plants. RSK was established in 1963 to supply power to Hydro’s aluminum plant at Karmøy. Lyse will be responsible for market activities and water disposal.
Through this transaction, Hydro is Norway’s third-largest operator of renewable power, with a combined renewables production of 13.6 TWh in a normal year, according to a press release. Based on equity shares, Hydro’s annual power production is 9.4 TWh in a normal year.