The landowners at Kandal Kraft AS have leased the water fall to Suomen Voima’s daughter company SV Vesivoima for 40 years.
The trade is based on the small power industry’s typical model in Norway, where the landowners themselves retain the fall rights and the share buyer rents the right to exploit the fall for a given period. Through this model, the power plant owner and the landowners collaborate to create renewable energy, and the income from the power plant is shared during the lease period. When the tenancy agreement expires, the landowners will be able to take over the power plant and continue to operate it themselves.
Kandal Kraft is a 5 MW hydropower plant built in 2009. It is located close to SVV’s already owned other hydropower plants in the same region (Stardalen and Befring). The plant produces on average 21 GWh of renewable electricity per year, utilizing the flow of the water in the Kandalselva river. The plant will be operated by Cadre AS.
“Kandal Kraft of 21 GWh fits well into our portfolio. We already own Eidsdal, Tryggestad, Stardalen and Befring in price range NO3, and will continue to invest long-term in this part of the country”, says Antti Vilkuna, CEO of SVV.
The landowners behind the power plant are well satisfied with the agreement. “With today’s demanding power prices in our area, we are happy to have brought in a new owner who is industrial, long-term and has solid liquidity”, says Jon Gimmestad, chairman of Kandal Kraft Holding.