Statkraft has announced it will focus on expanding its core business and optimizing its portfolio through selective divestments, prioritizing investments in Norwegian hydropower, market operations, and growth in solar, wind, and batteries in Europe and selected international markets. The company also plans to divest its district heating business and seek investors for its biofuels company, Silva Green Fuel, and the EV charging company, Mer.

“Statkraft has in recent years built a strong position and an attractive portfolio of profitable renewable projects,” explained President and CEO Birgitte Ringstad Vartdal. “The transition from fossil to renewable energy is happening at an increasing pace in Europe and the rest of the world. We have strong competitive advantages and have delivered great value creation over time. However, the market conditions for the entire renewable energy industry have become more challenging. We are therefore sharpening our strategy to allocate the capital to the most value-creating opportunities with the best strategic fit.”

Statkraft has developed a significant portfolio of power plants with a total capacity of 21GW, along with a net flexible development portfolio of profitable projects totaling 21GW. The company has committed to large investments for the coming years, with over NOK 30 billion planned for 2024, including the acquisition of the Spanish renewables company Enerfin in May. In Norway, Statkraft has a long-term investment program in wind and hydropower, including five major capacity upgrade projects.

Despite these plans, the energy market has become more challenging. Energy prices are lower, and both technology and capital costs have increased. Market regulations and support policies are delayed, and geopolitical uncertainty has grown.

This strategic adjustment follows Statkraft’s annual strategic review, the first with Ringstad Vartdal as President and CEO. The fundamental drivers of the energy transition continue to support Statkraft’s growth strategy, with strong demand for solar and wind power, increased need for flexibility in the power system, and greater market complexity fitting well with Statkraft’s competitive advantages.

“Statkraft has a unique and strategic position in flexible production, experience with weather-based systems, and strong analysis and market competencies. Together with a capable and motivated organization, this makes the company well prepared to grow, build scale, and compete in a rapidly growing renewable market,” said Ringstad Vartdal.

Statkraft’s growth strategy rests on four pillars: providing clean flexibility through hydropower, growing in solar, wind, and battery storage, delivering green market solutions to customers, and scaling new green energy technologies.

The revised strategy includes:

  • Prioritizing value creation from hydropower and market operations, with plans for at least five major capacity upgrade projects in Norway by 2030.
  • Developing 2-2.5 GW of solar, onshore wind, and battery storage annually from 2026 onwards, and aiming for 6-8 GW of offshore wind in Northern Europe by 2040.
  • Contributing to an efficient energy market and supporting industrial customers’ green transition.
  • Developing new green energy businesses, including green hydrogen, with a target of delivering 1-2 GW by 2035.

“With a sharpened strategy, we are well equipped to deliver both good value creation for the owner and to be a strong driving force in the energy transition in Norway, Europe, and the world,” said Ringstad Vartdal.