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. The company will be Norway’s third largest production company. 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, Lyse is one of the largest market players within hydro power, with a combined portfolio of 9.6 TWh in a normal year. Based on equity shares, Lyse’s annual power production is 7.2 TWh in a normal year.