Statkraft has submitted a licence application to the Norwegian Water Resources and Energy Directorate (NVE) to build a new Mår hydropower plant at Rjukan in Tinn municipality, Norway.
The proposed plant would increase annual electricity generation from about 1,140GWh to around 1,300GWh, an increase of just over 13%, while installed capacity would rise from 180MW to 520MW.
The project is part of Statkraft’s plans to invest NOK 70bn in upgrading and expanding Norwegian hydropower assets and is expected to be one of the company’s largest investments in Norway in the coming years.
The existing Mår plant was commissioned in 1948 and is nearing the end of its operational life. Statkraft said it plans to build a new facility around 1km further into the mountain, with a new intake from the Kalhovd reservoir and discharge into Tinnsjøen.
The new configuration would increase the hydraulic head and allow the plant to generate electricity more quickly during periods of high demand.
“Since the 1940s, Mår hydropower plant has supplied electricity to households and businesses. Thanks to skilled employees and good maintenance, much of the equipment currently in operation has delivered power for nearly 80 years. It was commissioned before the automatic washing machine was introduced and has outlasted 15 Norwegian prime ministers. Mår has been part of a development from a time when electricity was mainly used for lighting to a situation where it is essential in all aspects of daily life. Now, it must be upgraded,” said Pål Eitrheim, Executive Vice President for the Nordics at Statkraft.
Statkraft said the project would almost triple the plant’s installed capacity, allowing it to respond more rapidly to fluctuations in electricity demand and potentially reduce price peaks.
The licence application also includes an option to expand installed capacity to 1,040MW and add 1,040MW of pumped storage capacity in a later phase. The proposed pumped storage system would move water from Tinnsjøen back to the Kalhovd reservoir for generation during periods of higher demand.
“Whenever a power plant requires full refurbishment, we always look for opportunities to increase both production and capacity. We have a responsibility to maximise the value of regulated water resources. That is why we propose a new power plant with higher capacity, increasing production by around 13 percent,” Eitrheim explained.
Construction would involve excavating around 40km of new tunnels and transporting large volumes of rock. Statkraft said it is in discussions with local and regional authorities on potential uses for the excavated material.
“Energy production involves trade-offs,” said Eitrheim. “We must weigh the benefits to society of increased electricity generation against disadvantages such as impacts on nature. The new Mår power plant will not involve expanding reservoirs or diverting water from new rivers or streams, but it will affect the local environment and nature. At the same time, it will create activity for local, regional and national contractors. Mår power plant has been important for Rjukan, and this project will further strengthen its significance.”.
The company said it has also examined measures to improve conditions for wild reindeer in the area. It proposes building two new reindeer crossings at Graveide and Gøystoset to restore historic migration routes currently interrupted by reservoirs.
In May, Statkraft announced plans to invest NOK 80bn in Norway over the next decade across its Norwegian operations, including hydropower developments such as the Mår project.. The company has allocated an investment framework of NOK 9 bn for the new Mår project, with a potential additional NOK 5bn for a future pumped storage expansion.
“We are committed to building and securing Norway. Rjukan is a prime example of a location where we have contributed to jobs and substantial electricity production for nearly 80 years. We now aim to build a plant that can operate for another 70 years, produce more electricity and, importantly, increase output when it is needed most. This will help reduce price peaks. If we are to maintain reasonable electricity prices, we must produce more power – and that is what we will do at Mår,” concluded Eitrheim.
The project remains subject to regulatory approval. Statkraft said a final investment decision would depend on the project’s profitability and that, if a licence is granted, it will decide whether to refurbish the existing plant or proceed with construction of the new facility.