Statkraft acquires hydropower plants in Sweden and Finland

01.07.2005 08.00 | pressrelease

(Oslo, 1 July 2005) Statkraft and Sydkraft, the Swedish energy group, have today signed an agreement whereby Statkraft will acquire 24 hydropower plants in Sweden and Finland with an average annual production of approximately 1.6 TWh.

The transaction price is approximately SEK 4.5 billion. Statkraft will take over ownership and operating responsibility with effect from 1 October 2005. Operation of the power plants will be coordinated with the operation of Statkraft's other power plants.

In Sweden, Statkraft will acquire 20 power plants with an average annual production of approximately 1.3 TWh. These power plants are located on the Ångermansälven, Skellefteälven and Gideälven rivers.

In Finland, Statkraft will acquire four power plants with an average annual production of approximately 0.3 TWh. These power plants are located by the town of Kotka in southeast Finland and several miles west of Tampere in southwest Finland.

The acquisition is based on an agreement in principle entered into last October between Statkraft and the German power company E.ON, a majority shareholder of Sydkraft.

"Today's acquisition is important for our European strategy. We are already a significant participant in the Nordic market. The agreement gives us access to hydropower production in Sweden and Finland. This will give us a sound platform for continued growth in the Nordic countries and strengthen our position as one of the leading European producers of environment-friendly energy," says Bård Mikkelsen, Statkraft's CEO.

Statkraft aims to be a European leader in environment-friendly energy.Based on more than 100 years of knowledge and investments, the Statkraft Group is well equipped for further growth and development - and has a clearly stated desire to create lasting value. Statkraft stands for sustainable development in both an environmental and a financial sense. The group produces a total of 41 TWh per year, making it the third-largest producer of electricity in the Nordic region and the second-largest producer of renewable energy in Europe. The group has approximately 2,000 employees including the subsidiaries Skagerak Energi and Trondheim Energiverk. Statkraft also has shareholdings in the Norwegian power companies BKK, Agder Energi and Fjordkraft, as well as in the Swedish company Sydkraft.