Construction has started on the Skjeggedal hydropower plant in Åmli municipality in southern Norway. The project is being developed by Å Energi and is scheduled to enter operation in 2028. Once completed, the plant is expected to generate about 21GWh of electricity per year.
Jan Erik Eldor, Executive Vice President for hydropower at Å Energi, said the project forms part of the company’s strategy to expand renewable power generation and strengthen long-term security of electricity supply. Increased hydropower production is also expected to provide additional income for the company’s public owners, including several municipalities and Statkraft. Å Energi has stated an ambition to invest around US$1bn in new renewable power capacity by 2035. As of the third quarter of 2025, the group’s total investments amounted to about US$209m, up roughly 40% from the same period in 2024.
The project has also led to upgrades in local digital infrastructure. Skjeggedal, a small hamlet in the western part of the municipality, previously lacked broadband access and had limited mobile coverage. Through a joint initiative involving Åmli municipality, Det Digitale Agder, Telenor, Glitre Nett and Å Energi Vannkraft, broadband and improved mobile coverage are now being established in the area.
Mayor Hans Fredrik Tangen of Åmli municipality said the improved digital infrastructure is important for emergency preparedness, security and the long-term viability of local settlement. Municipal authorities have worked for several years to secure better connectivity in Skjeggedal, and the hydropower expansion created an opportunity to deliver this alongside the energy project.
Å Energi said environmental considerations have been integrated into the development of the Skjeggedal plant. Measures include limiting forest clearance, avoiding construction on bog areas to preserve stored carbon, and using low-carbon concrete to reduce CO₂ emissions compared with conventional materials.
Construction of the power plant is expected to generate activity for suppliers at local, regional and national levels. Norwegian hydropower contractor Hywer AS holds the main contract and has engaged several subcontractors, including Nomeland Maskin AS, Grunn Solid AS and Spetals Verk AS.
The Skjeggedal hydropower project includes about one kilometre of new access roads, a small intake dam with an unregulated reservoir, approximately 510m of tunnel and 200m of buried penstock, and a powerhouse of around 200m2. Installed capacity will total 5.7MW, consisting of a 4.4MW Francis turbine with a 124m head and a 1.3MW Pelton turbine with a 123m head.
