Strong performance by Småkraft in first-half – expands with 24 new power plants


Bergen, August 29, 2023 – Småkraft, Europe’s largest small-scale hydroelectric producer, has concluded a robust first half-year 2023. The company operates 222 hydroelectric power plants across Norway and Sweden, collectively generating 776 GWh of renewable energy in the first six months of this year. This marks a 6 percent increase compared to the same period last year when production stood at 729 GWh.  

Revenue from electricity sales totaled EUR 46 million, down from EUR 60 million in the first half of 2022. The revenue was adversely affected by lower achieved power prices in the current year’s first half compared to last year. Simultaneously, Småkraft reduced the power price volatility through financial contracts. Lower hedging losses than last year offset a portion of the revenue decline, resulting in an adjusted EBITDA of EUR 17 million, compared to EUR 19 million in the first half of 2022. 

Expanding by 328 GWh in small-scale hydro 

Småkraft collaborates closely with landowners and local communities to sustainably develop new power generation in smaller waterstreams. In the first half of the year, the company achieved the goal set in 2018 of reaching 2 TWh in production. Throughout the first half of 2023, the company has continued to enhance its generation capacity, completing one acquisition and commissioning of a newly constructed hydroelectric power plant. The expansion is ongoing, and the company pursues the development and construction of an additional 24 small-scale plants. These will contribute 328 GWh of new renewable energy to Småkraft’s portfolio, meeting the equivalent consumption needs of 18,000 Norwegian households. 

– Småkraft is currently among the companies making the most substantial investments in renewable power generation in Norway. We have concluded a half-year of stable operations and strong underlying earnings, despite the significant market fluctuations. Simultaneously, we are poised to maintain our rapid growth pace by constructing an additional 24 power plants. Norway requires all the electricity we can generate, and we need it swiftly to secure the foundation for our further green transition, says Terje Vedeler, CEO of Småkraft.  

Steady performance amidst market fluctuations 

Småkraft has secured the price for a portion of its future power production. Consequently, market price fluctuations significantly impact the company’s financial results, but have a lesser effect on cash flow or underlying operations. Given the decline in future power prices in 2023, Småkraft poses a substantial positive unrealized hedging gain of EUR 44 million, in contrast to a substantial unrealized hedging loss of EUR 96 million in the first half of 2022. This contributes to a reported operating profit of EUR 51 million in the first half of 2023, compared to a negative reported operating profit of EUR 86 million in the first half of 2022. 

As Småkraft employs Norwegian krone as its functional currency, the company incurs unrealized currency losses on its euro-denominated loans when the Norwegian krone depreciates against the euro. This FX- factor results in Småkraft reporting a pre-tax breakeven for the first half of the year, as opposed to a recorded loss of EUR 100 million in the first half of 2022. 

Diversification of financing sources 

In May, Småkraft signed a 7-year fixed-rate loan of EUR 40 million with a group of reputable institutional investors as lenders. This loan complements Nordic banks, green bonds, and other capital sources that ensure continued investments in renewable energy in the Nordic region. 



Facts about Småkraft AS:  

  • Småkraft owns and operates 222 small-scale hydroelectric power plants in Norway and Sweden. 
  • Produces 2 TWh renewable electricity annually. 
  • Småkraft collaborates with more than 900 landowners 32 employees across offices in Bergen, Sandnes, Harstad, Flatanger, Verdal, Dale, Førde and Oslo, Norway and Gjävle, Sweden.   


For more information, please contact:  

Erik Røysem Sterud, Chief Financial Officer, +47 911 63 907 


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