VEO has signed a contract with Hafslund Kraft AS to deliver electrification and automation systems for the Hemsil 3 hydropower expansion in Norway. The project is the largest hydropower development in Hallingdal in six decades and is expected to increase annual production through more efficient use of existing waterways.
Hemsil 3 expands the existing Hemsil 2 facility but will operate as a separate power plant. The development will use portions of existing infrastructure, including waterways with parallel sections from Eikredammen to Gol and a new outlet tunnel to Hallingdalselva.
The plant will operate independently from the Hemsil 2 system to optimise production and operational flexibility. The upgrade is expected to increase annual generation by 110GWh, raise installed capacity by 86MW, and increase total output from about 590GWh to 700GWh per year. The project aims to improve water resource efficiency while contributing to Norway’s renewable energy targets.
VEO’s scope includes a turnkey delivery of electrical and automation systems covering system design, integration, and performance. The company will supply control and protection systems, including PLC-based panels, auxiliary AC, DC, and emergency power systems, medium- and high-voltage distribution, cabling and instrumentation, and related engineering, documentation, installation, and commissioning services.
Civil works will be undertaken by contractors appointed by Hafslund, while VEO will focus on electrical and automation systems and provide design input relevant to civil engineering interfaces.
Environmental mitigation measures include maintaining minimum downstream water flow and biotope improvements below Eikredammen. Most permanent land use will occur in areas already affected by previous developments. Project planners estimate climate emissions will be reduced by approximately 22% compared with conventional approaches through the use of low-carbon concrete and electric machinery.
Local suppliers are expected to provide 10–20% of the total investment, representing more than NOK 300m in goods and services for businesses in the Hallingdal region.
The expansion received its licence in June 2024. Construction began after the main contractor agreement was signed in November 2025, and completion is scheduled for summer 2029.
