Hafslund has decided to halt development of a proposed hydropower plant in Sarpsfossen in the municipality of Sarpsborg due to technically and financially unacceptably high risks from challenging ground conditions.

Hafslund has long evaluated ways to increase power production in Sarpsfossen by better utilising the river’s flow. In 2024 the company applied for a licence for a new plant named Sarp 2.

During development it became clear that the planned intake and power station site are in an area with a known high-risk quick-clay zone. Extensive ground investigations and geotechnical engineering by external specialists showed that highly complex and costly stabilisation measures would be required.

According to managing director Kristin Lian of Hafslund Kraft, the investigations provided better clarity on progress and cost, and the execution risk is significantly larger than for other hydro projects. As a result, the company has opted to suspend further work on Sarp 2.

Hafslund said it will continue to explore other ways to increase power generation in Sarpsfossen, including upgrades and expansions of the three existing hydro plants it owns and operates there.

The company has also requested that the Norwegian Ministry of Energy and Water Resources put the licence processing for the project on hold.

Hafslund has produced power at Sarpsfossen since the late 1800s. In 2025 it acquired the Borregaard power plant, giving it a 90 % ownership and operational control of the three plants at the waterfall (the remaining 10 % is held by Svartisen Holding). Together the facilities generate about 945GWh in a normal year.