Å Energi Vannkraft has awarded Norwegian contractor Veidekke a contract worth nearly NOK580m (US$60m) to construct the Øygard hydropower plant in Åseral municipality in Agder, southern Norway. The project is the final stage of a series of seven hydropower developments undertaken by Å Energi in the area over the past decade.
Construction work is scheduled to begin at the end of April, with completion planned for summer 2029.
Øygard hydropower plant will have an installed capacity of 21MW and is expected to produce about 80GWh annually. Once completed, Å Energi’s total annual production in Åseral will reach around 1,400GWh, equivalent to roughly 4% of annual electricity consumption in southern Norway’s NO2 price area.
Veidekke said the contract covers construction of a power station at Nåvatn, along with a 6.6km transfer tunnel and 1.3km of auxiliary tunnels including access tunnels, an inlet tunnel, bypass tunnel and swing arrangement. The works also include sand traps, pressure pipes, shafts, gates and other hydraulic structures, as well as preparation of the site for a 132 kV outdoor switchyard at the power station.
Neal Nordahl, director at Veidekke Anlegg, said the company welcomed the opportunity to take part in the final stage of the development programme. “Veidekke has a long and proud history when it comes to building hydroelectric power plants that produce in-demand renewable energy. We are therefore very pleased to have won the competition for the final stage of the power development in Åseral,” he said.
Å Energi described the project as a milestone that will complete a major hydropower expansion programme in Åseral that began in 2016 and represents more than NOK 3.5 billion (about US$360 million) in total investment.
Steffen Syvertsen, CEO of Å Energi, said: “This is a milestone for us. I am pleased that we can now finally start construction of Øygard power plant and thus complete the development in Åseral that we started almost ten years ago.”
The broader programme has included the installation of a new 100MW unit at Skjerka power plant, construction of a new dam at Langevatn raising the reservoir regulation height by 10m, a 13km transfer tunnel between Langevatn and Nåvatn, the 1.6MW Kvernevatn power plant, and new dam structures at Skjerkevatn to replace older facilities in line with updated safety requirements.
A new 6km, 132kV transmission line will also connect the Øygard plant to the Honna substation.
Å Energi said the developments have increased renewable power generation and strengthened security of supply in the region. The company has also signed a long-term power purchase agreement with Bulk Infrastructure in connection with the Øygard investment, providing greater predictability for the project’s revenue.
