Statkraft to Invest €6 Billion in Hydro and Wind Power Upgrades Across Norway
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Key Impact Points:
- Statkraft’s Major Investment in Norway: Statkraft plans to invest up to €6 billion in enhancing its Norwegian hydro and wind power facilities, marking the largest such program in decades for hydro and wind power in Norway.
- Hydroelectric and Wind Power Upgrades: The investment includes €1.8 to €3 billion for upgrading hydroelectric plants, €1.2 to €2 billion for dam rehabilitation and modernizing older plants, and €1 billion for renewing and constructing new onshore wind farms.
- Increased Power Production: The program aims to more than double wind power production to over 2,500 GWh and increase hydroelectric power by 1,500 to 2,500 MW.
- Hydropower as Norwegian Energy Backbone: Hydropower remains central to Norway’s energy system, complemented by new wind power projects.
- Focus on Key Hydropower Projects: Statkraft is concentrating on significant hydropower projects, including Mauranger, Aura, Alta, and Svean, contingent on regulatory frameworks, concessions, power demand, and local community engagement.
- Acquisition of Red John Pumped Storage Scheme: Statkraft recently agreed to acquire the 450 MW Red John pumped storage hydro scheme.
- Modernization and Dam Rehabilitation Investment: Plans include up to €2 billion for rehabilitating dams and modernizing older plants, enhancing resilience against extreme weather, floods, and threats.
- Statkraft’s Wind Power Expansion: Initiatives include the 260 MW Moifjellet wind project in Rogaland, repowering existing wind farms for a 40% production increase, and exploring new wind projects in Finnmark and across Norway.
- Statkraft’s Renewable Energy Leadership: As Europe’s largest renewable energy generator, Statkraft produces hydropower, wind power, solar power, gas-fired power, and district heating.
Statkraft is planning to invest up to €6 billion (US$6.6 billion) in upgrades to its Norwegian hydro and wind power facilities and construction of new onshore wind farms.
“Statkraft is presenting the largest investment program of its kind in hydro and wind power in Norway for decades. This will be a major contribution to the energy system in Norway and to the green transition. It will also have positive effects on the Nordic and European energy markets,” says Christian Rynning-Tønnesen, chief executive officer of Statkraft. “The future power system in Norway and Europe will need both more power and increased flexibility. Phasing in more intermittent power such as wind and solar through increased capacity and flexibility in hydropower is key to succeed with the transition to a net zero future.”
The investment program will include:
- €1.8 billion to €3 billion ($2 billion to $3.3 billion) in upgrades and transformations of Norwegian hydroelectric power plants
- €1.2 billion to €2 billion ($1.3 billion to $2.2 billion) in rehabilitation of dams and modernization of older power plants
- €1 billion ($1.1 billion) in renewal of existing and construction of new onshore wind farms
- 2,500 GWh or more of wind power production (more than double current production).
- 1,500 MW to 2,500 MW increased effect in hydroelectric power plants (over 20% increase in installed effect).
The increased power needs of the future in Norway will mainly be covered by new wind power, but hydropower will still be the backbone of the Norwegian energy system with its unique features, Statkraft said.
Statkraft plans for major upgrades of hydropower plants in the coming years. These include the Mauranger, Aura, Alta and Svean plants in western, central and northern Norway.
“We are working to mature the best hydropower projects. These are large and complex and take a long time to develop and build. All projects will depend on a predictable regulatory framework, getting the necessary concessions, the level of power demand, and a good dialogue with local communities,” said Birgitte Ringstad Vartdal, Statkraft’s executive vice president for the Nordic region.
Last month, Hydro Review reported that Statkraft has agreed to acquire the 450 MW Red John pumped storage hydro scheme from Intelligent Land Investments Group (ILI).
In addition, Statkraft will invest up to €2 billion ($2.2 billion) in the period 2024 to 2030 in the rehabilitation of dams and modernization of older power plants to ensure continued cost-effective and regulated power production. The investments will make the facilities even more robust against extreme weather, handling of damage floods and terrorist threats.
Statkraft is Norway’s largest producer of wind power. Statkraft has started the concession and planning process to build the 260 MW Moifjellet wind power project in Rogaland. Repowering includes the Smøla, Hitra and Kjøllefjord wind farms, with an estimated increase in production of around 40%.
And Statkraft is looking at four possible wind power projects in Finnmark, Northern Norway and considering many new wind power projects throughout Norway.
Statkraft is Europe’s largest generator of renewable energy, producing hydropower, wind power, solar power, and gas-fired power and supplying district heating.