Statkraft has submitted a license application to upgrade its Nore hydropower plants in Buskerud, Norway. The project is estimated to cost 4 billion NOK and aims to increase electricity capacity and contribute to more stable power prices.
The Nore facilities include the Nore I plant, operational since 1928, and the Nore II plant, which began producing electricity in 1946. Both are located on the Numedalslågen river.
“In the coming years, Statkraft will build the next-generation hydropower system, and we will start five major upgrades by 2030. The license application for upgrading and expanding the Nore plants is an important step in that direction,” said Birgitte Ringstad Vartdal, CEO of Statkraft.
The company says the project will modernize aging infrastructure while increasing electricity production using the same water resources. Environmental and nature considerations are also central to the plan. Nore I, once the largest power plant in Norway, was originally built to supply electricity to Oslo.
“When the first Nore plant was built, it was the largest in the country and produced one-fifth of all electricity in Norway. The power plant was also a catalyst for the industrialisation of Oslo. And now, a hundred years later, we will ensure that it supplies the Norwegian society with electricity for another hundred years,” Vartdal said.
Statkraft is considering two alternatives for the upgrade. The preferred option is to combine both plants into a single new facility built inside the mountain. This would increase capacity from 274MW to 500MW and boost annual production from about 1,500 GWh to 1,700GWh. The second option would move the two plants into the mountain separately, increasing capacity by 65MW and annual production by around 150GWh.
“In the power system of the future, there will be a great need to regulate production to deliver more electricity in a short amount of time. Therefore, we are constantly looking for opportunities to increase the capacity of our plants. More capacity can help reduce price peaks, as more and more unregulated renewable power enters the power mix. The new Nore power plant will be important both for the region and for Norway,” said project manager Hanne Kristin Ommedal.
Statkraft plans to seek licenses for several major upgrades in the coming years, which could increase its installed capacity in Norway by over 20 percent. A final decision on the Nore project will depend on the outcome of the licensing process and further internal assessments.
“Upgrading hydropower plants requires large investments and is often only marginally profitable. There are many considerations to be taken, including the impact on the environment, landowners, and the local population. We will also have to make a comprehensive assessment based on access to capital and which projects provide the most benefit. What is certain, however, is that we will invest tens of billions of NOK to ensure that Norwegian homes and businesses have electricity in the socket for future generations. The license application for upgrading the Nore plants is a good example of this,” Vartdal said.
The application will be reviewed by the Norwegian Water Resources and Energy Directorate (NVE). A public hearing will follow, with the Ministry of Energy making the final decision on the license and its conditions. Only after a license is granted will Statkraft make a final investment decision.
