Investment manager Downing executed a £3m acquisition of a Norwegian hydropower plant with an annual average production 5 gigawatt-hours (GWh).
The investor acquired Kvævebekken Kraftverk from Fossberg Kraft.
The asset is located in the Sirdal region of south Norway and is the second this year in the hydropower sector made by Downing, following the acquisition of Lauvstad Kraftverk in January.
Following the acquisitions of Kvævebekken and Lauvstad, Downing now owns seven hydropower plants in the southern part of Norway with a forecast aggregate annual average generation of 41GWh.
Henrik Dahlström, Investment Director at Downing, said: “The Kvævebekken hydropower plant acquisition is another excellent opportunity which enables us to further expand our investment allocations in hydropower and the Nordic region.
“Financing newbuild hydropower in the Nordic region is an important part of our strategy as we look to continuously diversify our portfolio by both geography and technology.
“We look forward to continuing our excellent relationship with Fossberg Kraft to further expand our Norwegian hydropower portfolio.
“As a certified B Corp, we are committed to responsible investing and delivering on the strategy. We look forward to adding further attractive projects to our portfolio in due course.”