StatKraft To Aquire Solarcentury In $152 M deal

StatKraft To Aquire Solarcentury In $152 M deal

Norwegian renewable energy major StatKraft has announced a deal to acquire UK based Solarcentury.

The deal, worth a total of $152m (£118m) will involve StatKraft buying the shares from multiple investors, including PE investors, in Solarcentury, the largest solar PV firm in the United Kingdom.

The London-based Solarcentury, a well-known name in the solar panel manufacturing business, had reported an (EBITDA) of more than $26m in 2019.  However, the firm has seen it fit to align with StatKraft in the face of intense competition from China-based firms, and the increasing demands for investment in research and distribution that the new solar market demands. Started in 1998, Solarcentury has been around since the early days of the solar sector.

For StatKraft, the Solarcentury acquisition will add a 6GW project pipeline in countries including France, Greece, Italy, and Chile, markets that have a strong complementarity with its existing spread.

Statkraft itself has reported an installed capacity of 1.9 GW, aiming to grow to 11 GW by 2025. The company reported gross operating revenue of $5.1bn from an energy portfolio that is 93 percent renewable, made up of Hydro, Wind and Solar.

While the deal is subject to regulatory approval, there really isn’t any issue that could delay the same.

Speaking about the deal, Christian Rynning-Tønnesen, CEO of Statkraft was quoted to say: “This acquisition is in line with our strategy to ramp up as wind and solar developer and become one of the leading renewable energy companies globally. 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 said that: “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.”

The deal continues the consolidation that has started in the market, especially as the next phase of solar growth, backed by high investments to generate power for Green hydrogen production, is panned in Europe and elsewhere. That’s an area where European firms expect to have a clear advantage, and the state-owned StatKraft has clearly placed its earliest bets on the same.

In India, Statkraft made an entry through its subsidiary SN Power in 2004 when it acquired 49 percent of the shares in Malana Power Company Limited (MPCL). Statkraft was then the first foreign investor in the Indian hydropower sector.

The firm’s energy generation portfolio in India includes two operating run-of-the-river hydropower projects (Allain Duhangan (192 MW)  and Malana (109 MW)) and one hydropower asset under construction (Tidong-100MW). All three assets are located in the state of Himachal Pradesh and were the result of acquisitions.

Statkraft ventured into solar in India in 2015 and currently owns and operates five solar assets spread across the country to cater to the needs of the industrial and commercial customers under the OPEX model.

"Want to be featured here or have news to share? Write to info[at]

Prasanna Singh

Prasanna has been a media professional for over 20 years. He is the Group Editor of Saur Energy International