Norwegian state-owned utility Statkraft has announced the acquisition of UK solar panel manufacturer Solarcentury in a deal worth £118 million.

The energy firm will gain access to a 6GW pipeline in South America and Europe, including the UK, Spain, France, Greece and Italy, supporting Statkraft’s ambition to develop at least 8GW of solar and wind capacity by 2025.

The deal is an acquisition of 100% of the shares in Solarcentury Holdings and its subsidiaries.

Statkraft’s research suggests solar energy will outshine other renewables as the world’s largest source of electricity from 2035, after having grown 27 times over the last decade.

In 2050, solar power is expected to account for around 38% of global electricity generation.

Christian Rynning-Tønnesen, CEO of Statkraft said: “This acquisition is in line with our strategy to ramp up as a wind and solar developer and become one of the leading renewable energy companies globally. Just like hydropower and solar power complement each other, Statkraft and Solarcentury are an excellent fit in terms of purpose and people. Joining forces will accelerate our growth and continue to drive the energy transition forward.”

The deal is subject to regulatory and local competition approvals and is expected to be completed by the end of the year.