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Hydropower company Statkraft acquires Solarcentury solar developer

Statkraft, a leading company in hydropower internationally, has signed an agreement to acquire Solarcentury. Together the companies are well-positioned for accelerated growth in solar and to become one of the world’s leading renewable energy companies, according to a press release.

Statkraft will gain access to a 6-GW (gross) pipeline in Europe and South America that, combined with Statkraft’s current project portfolio, positions the company as a leading developer in the European solar market. Solarcentury’s project pipeline spans many high-growth markets, including Spain, the Netherlands, the UK, France, Greece, Italy and Chile.

The transaction is an acquisition of 100% of the shares in Solarcentury Holdings and its subsidiaries. The main shareholders were previously Scottish Equity Partners, VantagePoint Capital Partners, Zouk Capital, and Grupo Ecos. The purchase price is £117.7 million (US$152 million) and includes net cash.

Solarcentury’s geographical footprint is well-aligned with Statkraft’s existing development portfolio and market operations, Statkraft said. Statkraft said it is “uniquely positioned to add value to the acquired project pipeline through its market integration capabilities and has a target to develop at least 8 GW of wind and solar by 2025.”

Solar capacity has grown 27 times over the past decade and solar energy is expected to outshine other renewables as the world’s largest source of electricity from 2035, according to Statkraft’s Low Emissions Scenario. In 2050, solar power is expected to account for 38% of global power generation.

“This acquisition is in line with our strategy to ramp up as a wind and solar developer and become one of the leading renewable energy companies globally,” said Christian Rynning-Tønnesen, chief executive officer of Statkraft. “Just like hydropower and solar power complement each other, Statkraft and Solarcentury are an excellent fit in terms of purpose and people. Joining forces will accelerate our growth and continue to drive the energy transition forward.”

Frans van den Heuvel, CEO of Solarcentury commented: “Solarcentury has grown entirely organically since 2007 into a highly profitable business. To continue to grow at the pace that is possible given the market we’re operating in, we will benefit from a larger balance sheet and this has resulted in us seeking new ownership. Statkraft is the perfect match for us given their ambition to invest in and grow their solar portfolio.”

Solarcentury is headquartered in London and has developed 40 utility-scale projects totaling about 1,200 MWp across seven countries since the company changed its strategic approach in 2013.

Statkraft is Europe’s largest generator of renewable energy. The group produces hydropower, wind power, solar power, gas-fired power and supplies district heating. Statkraft says the majority of its power production comes from hydro, with 335 plants and total installed capacity of 14,399 MW of hydroelectric power.

Solarcentury develops, constructs, owns and operates utility-scale solar and smart technology, including some of the largest utility-scale solar projects in the UK, the Netherlands, Spain, Kenya and Mexico.