Statkraft plans $7bn investment in Norwegian hydropower

Statkraft has announced plans to invest around NOK80 billion (€7.4 billion/$8.6 billion) in Norwegian power generation over the next ten years, with NOK70+ billion being committed to hydropower.

According to the Norwegian energy company, about NOK40 billion investment will be allocated to maintenance of existing assets to safeguard current generation capacity.

The remaining half is earmarked for upgrades, further development, and new capacity and output.

The company states that over the next 10 years many of its hydropower plants will require upgrades and therefore plans to initiate at least five major upgrade projects by 2030.

Some of the plants that qualify for modernisation include Nore in Buskerud opened in 1928, Mår in Telemark which opened in 1948 and Aura in Møre og Romsdal which opened in 1953.

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These upgrades will help increase output, protect generation capacity and reduce peaks when the wind isn’t blowing.

President and CEO Birgitte Ringstad Vartdal explains: “The infrastructure and technology have delivered electricity for decades, and we are committed to extending their lifetime as far as possible. We are dealing with tunnels excavated 60–80 years ago. We are now entering a phase where much of the equipment is reaching the end of its service life, while tunnels and waterways require upgrades."

She adds: “At the same time, we are mandated to modernise several large dams. All of this will require substantial investment and significant effort from both Statkraft and our suppliers. Hydropower is often portrayed as almost cost-free, but this is a reminder of the considerable investment required to sustain a robust energy system.”

The NOK80 billion commitment represents an increase compared to the previous estimate of NOK44–67 billion presented in January 2024, which according to Vartdal, is fully aligned with Statkraft’s strategy to concentrate investments in its core business.

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Pål Eitrheim, Executive Vice President for Nordics, also commented in a statement: “By investing NOK80 billion, we are undertaking one of the largest industrial programmes in Norway for many decades. In practice, we are rebuilding major hydropower plants. This will generate activity from Finnmark in the north to Telemark in the south, and from Innlandet in the east to Vestland in the west. These investments will ensure our power plants can continue generating electricity well into the next century.”

In Alta, the company is planning to expand the existing facility from two to three generating units, enabling the utilisation of water that currently bypasses the plant during the flood season.

Dam maintenance is also on the agenda, with Statkraft needing to reinforce several older dams ensure climate resilience, as well as comply with stricter safety requirements.

Eitrheim continues: “We have extensive plans for the coming years, and this will require disciplined prioritisation to ensure we execute the right projects. Investment in hydropower is essential to maintain production, as many of our facilities are approaching the end of their operational lifetime. capable of producing more electricity when it matters most.”

Read more about hydropower

Besides investing in hydropower, Statkraft will be investing in wind power as well. While new projects are planned, three wind farms are approaching the end of their operational lifetime and can be upgraded to significantly increase power output.

“In replacing ageing wind farms, we are aiming to significantly increase output while reducing the number of turbines. We are drawing on experience from similar repowering projects in Spain. Our estimates indicate that we will more than double our wind power generation over the next ten years. This will contribute to lower power prices and support jobs across the country,” concludes Eitrheim.