Statkraft eyes a $380m upgrade for Nore hydro plants

Europe’s largest renewable energy generator, Statkraft, is seeking a license to upgrade the Nore hydropower plants in Nore and Uvdal in Buskerud, Norway with a 4 billion NOK (~$384 million) budget.

The Nore plants consist of Nore I power plant and Nore II power plant. Nore I was completed in 1928, has 212MW installed capacity, and 1150GWh annual production. Nore II began production in 1946, has 60MW installed capacity, and over 300GWh annual production. The facilities are located on the Numedalslågen river.

Over the next few years, Statkraft said it will build the “next-generation” hydropower system, and plans to start five major upgrades by 2030. The license application for upgrading and expanding the Nore plants is an “important step” in that direction, argued Statkraft president and CEO Birgitte Ringstad Vartdal.

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Nore I produces 70 times more power than Hammeren power plant in Maridalen, which supplied the Norwegian capital from 1900, and was built to cover all of Oslo’s electricity needs. When the first Nore plant was built, it was the largest in the country and produced one-fifth of all electricity in Norway.

Statkraft is considering two alternatives for the upgrade of the Nore hydropower plants. The preferred alternative is to combine the plants into one new power plant inside the mountain, but the company is also exploring an alternative that includes moving the two power plants further into the mountain from where they are currently located.

The first alternative would nearly double the capacity from 274 to 500MW and increase electricity production by approximately 200GWh to about 1700GWh. The second alternative would increase the combined capacity by 65MW and increase production by around 150GWh.

Statkraft plans to seek licenses for several major capacity upgrades in the coming years. In total, this could increase Statkraft’s installed capacity in Norway by over 20%, providing between 1500 and 2500MW of increased capacity. A final investment decision in the upgrade of Nore power plants can only be made after the license is granted, Statkraft stated.

Statkraft noted that upgrading hydropower plants requires large investments and is often only marginally profitable, and the company will have to make a “comprehensive assessment” based on access to capital and which projects could provide the most benefit. However, the company maintains that it will invest “tens of billions of NOK” to improve the Norwegian energy system.

The license application will now be processed by the Norwegian Water Resources and Energy Directorate (NVE), and a hearing process will be conducted. The Ministry of Energy will decide on a possible license and its conditions. If the license is granted, the company will decide whether the project can be carried out and make an investment decision.

Originally published by Sean Wolfe on Factor This