Record-breaking investments unveiled by Statkraft in Norwegian hydropower and wind projects
8 January 2024
European renewable energy generator Statkraft has announced plans to invest €6 billion in a comprehensive overhaul of its hydroelectric and wind power infrastructure – the largest investment program of its kind in hydro and wind power in Norway for decades.
Christian Rynning-Tønnesen, the CEO of Statkraft, expressed the magnitude of this investment program, highlighting its pivotal role in the green transition and its positive impact on the broader energy system. " 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," he said.
The extensive investment program is designed to address the increasing power demands and enhance flexibility within the evolving power system. Rynning-Tønnesen emphasized the crucial role of hydropower in facilitating the integration of intermittent power sources like wind and solar for a successful transition to a net-zero future.
The key components of Statkraft's investment program include:
- Upgrades and transformations of Norwegian hydroelectric power plants with an investment ranging from €1.8 to 3 billion.
- Rehabilitation of dams and modernization of older power plants with a budget of €1.2 to 2 billion.
- Renewal of existing and construction of new onshore wind farms, accounting for approximately €1 billion.
- A substantial increase in wind power production by 2,500 GWh or more, more than doubling the current production.
- A significant boost of 1,500-2,500MW in the installed effect of hydroelectric power plants, representing over a 20% increase.
While new wind power will play a crucial role in meeting future power needs, hydropower remains the backbone of Norway's energy system, owing to its unique characteristics.
Statkraft's focus on hydropower includes major upgrades to hydroelectric plants such as Mauranger, Aura, Alta, and Svean in Western, Central, and Northern Norway. However, the successful execution of these projects depends on factors such as a predictable regulatory framework, obtaining necessary concessions, power demand levels, and fostering a positive dialogue with local communities, as explained by Birgitte Ringstad Vartdal, Statkraft's Executive Vice President for the Nordic region. “We are working to mature the best hydropower projects. These are large and complex, and take a long time to develop and build,” she said.
Additionally, Statkraft plans to invest up to two billion euros between 2024-2030 in the rehabilitation of dams and modernization of older power plants, ensuring continued cost-effective and regulated power production, as well as bolstering facilities against extreme weather, floods, and potential security threats.
In the realm of wind power, Statkraft, already Norway's largest producer, is poised for substantial growth. Vartdal highlighted the potential of onshore wind as a fast and cost-effective solution for new power generation before 2030. The company has initiated the concession and planning process for the Moifjellet 260 MW wind power project in Rogaland and plans to repower existing wind farms in Smøla, Hitra, and Kjøllefjord, expecting a production increase of around 40%.
Statkraft is actively exploring four potential wind power projects in Finnmark, Northern Norway, with the development contingent on grid capacity, concessions, and collaborative solutions with local stakeholders, including reindeer herders.
