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The two companies merge parts of their hydroelectric production to create a common power actor. It should be called Light Power.
IN BOX: CEO Hilde Merete Aasheim at Hydro and CEO Eimund Nygaard at Lyse signed the deal on Wednesday.
Hydro / Halvor Molland
Published:,
Power plants in southwestern Norway are merging, and Hydro’s Røldal Suldal Kraft (RSK) plant is included along with the bulk of Lyse’s power portfolio.
If the deal is approved by the Norwegian Competition Authority, this means that RSK’s plants will not be repatriated by the end of 2022 and that the new company’s energy can still be used for Hydro’s aluminum production in Norway.
– We have worked to find a solution to this for the last ten years, so that we can continue to use this power for aluminum production, says press contact Halvor Molland at E24.
The new company will be called Lyse Kraft DA and, according to Hydro, it will have a normal annual production of 9.5 TWh.
With this agreement, Hydro grows as a renewable energy operator with responsibility for 33 hydroelectric plants in Norway.
Must save 500 million in efficiency
The deal is expected to generate savings of up to NOK 500 million in total at Lyse Kraft DA, Hydro writes in a press release on Wednesday.
According to the company, this will be done through “economies of scale and more efficient operations.”
– It’s all about production, operation and sales planning, says Halvor Molland, Hydro press contact for E24.
A total of 61 people work in the facilities that are part of the new company.
– Will rationalization lead to cuts in the number of jobs?
– They are people who are in the operational organization and who will also be needed in the future, says Molland.
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Waiting for a final deal this year
He adds that the merger will now be approved by the Norwegian Competition Authority. Hydro expects the deal to be finalized during the year.
Hydro will own 25.6 percent of the new company and Lyse will own 74.4 percent.
Hydro will be the operator and operator of RSK, in addition to Lyse’s wholly owned plant, which is part of the new company.
– We are very happy to have come up with such a good solution. It is good for Hydro and Lyse, and for industrial production in Norway. We use renewable hydroelectric energy to produce aluminum, a product that is in greatest demand around the world, says Molland.
