Norsk Omipower is a platform investment with a portfolio of small-scale hydropower projects in Norway. As of 31 December 2021, the platform comprises two operating assets totaling 3.1MW, a further six projects totaling 36.3MW in construction (of which 12MW are generating power), and a wider pipeline of potential projects.
Norway is one of the leading countries worldwide in terms of renewable energy, with hydropower accounting for most of its total power production. In addition to the country’s inherent topographical advantages, the regulatory environment in Norway is highly supportive of the hydropower sub-sector and as such Norway, and Norsk Omipower, is a natural fit for Impax’s New Energy strategy.
Impax acquired 75% of Norsk Omipower in 2018 having originated the transaction bilaterally through the team’s own network. Investing alongside local developers is an important part of Impax’s strategy and the qualities of Blåfall, our partner at Norsk Omipower, including their local deal sourcing and a strong development skillset, complement Impax’s construction, financing and corporate governance expertise.
Impax, together with Blåfall, have demonstrated an ability to create value during ownership through several initiatives, including:
- Implementing rigorous project screening of development pipeline to focus team resources
- Bolstering the local development team with engineering and construction hires with support and oversight from Impax’s in-house engineer
- Acquiring three add-on projects1 (c. 18MW) accretive to the existing portfolio and a significant step to reaching critical mass
- Securing debt financing at attractive rates to fund existing and future construction projects
1This includes a 3.2MW project (Bola) which has been signed but not closed as of 31 December 2021.