Statkraft acquires hydropower projects in Turkey

18.03.2009 08:00 | pressrelease

(Istanbul/Oslo, 18 March 2009) Statkraft AS and Global Investment Holdings, a Turkish diversified holding company, have signed an agreement to transfer hydropower projects to Statkraft. Under the agreement Statkraft acquires Yesil Enerji, a company with controlling interests in seven hydropower projects in Turkey. The potential of the project portfolio is an annual generation capacity of more than 2 TWh. The agreement is Statkraft’s first in Turkey.

Statkraft acquires 95 per cent of Yesil Enerji, a wholly-owned subsidiary of Global Investment Holdings. Yesil Enerji holds controlling interests in seven hydropower projects with a combined installed capacity of 633 MW and an annual generation capacity of 2.1 TWh. Development and construction of the seven hydropower plants is expected to require a total investment of EUR 600–700 million.

One of the hydropower projects, a 20 MW facility, is under construction and scheduled for completion around the end of this year. Development of the other projects can start in 2010 at the earliest.

Four of the hydropower projects hold generation licenses from the Energy Management Regulatory Authority of Turkey (EMRA), and the remaining two are in the final stages of obtaining such permits.

- We are extremely pleased with this agreement. Statkraft will be taking over a portfolio of profitable hydropower projects, which will provide Turkey with more clean energy – while establishing a foothold for Statkraft in the Turkish market, which is in the process of becoming integrated into the European energy market, says Bård Mikkelsen, President and CEO of Statkraft.

The transaction and transfer of the shares is expected to take place in June this year. Closing is subject to certain condition precedents set forth in the Sale Agreement, as well as certain regulatory approvals, including the approval of EMRA.

Global Investment Holdings is a public Turkish company which has been listed on the Istanbul Stock Exchange since 1995.  GIH operates in several key sectors in Turkey, including infrastructure, where its activities include the operation of privatised cruise and commercial seaports; natural gas distribution; energy generation (including both hydroelectric and thermal facilities); real estate development; and, through its wholly-owned subsidiary, Global Menkul Degerler A.S. (“Global Securities”), brokerage and corporate finance.

Statkraft is Europe's largest renewable energy company. The Group develops and generates hydropower, wind power, gas power and district heating, and is a major player on the European power exchanges. Statkraft also develops marine energy, osmotic power solar power, and other innovative energy solutions. In 2008 Statkraft posted gross operating revenues of EUR 3.1 billion. The group employs 3,000 staff in more than 20 countries.