Business

Statkraft prioritizing investment in Norwegian hydropower

Statkraft prioritizing investment in Norwegian hydropower
The Svean powerhouse (photo courtesy Statkraft)

Statkraft said it has sharpened its growth strategy by prioritizing investments in Norwegian hydropower; market operations; and growth in solar, wind and batteries in Europe and selected international markets. Statkraft will continue to build options for offshore wind and hydrogen but plans to divest the district heating business and find investors in biofuels company Silva Green Fuel and EV charging company Mer.

“Statkraft has in recent years built a strong position and an attractive portfolio of profitable renewable projects. 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,” says President and Chief Executive Officer Birgitte Ringstad Vartdal. 

Statkraft has built a significant portfolio of power plants in operation, amounting to total capacity of 21 GW, as well as a net flexible development portfolio of profitable projects totaling 21 GW. 

Statkraft has committed large investments for the next years, with a record-high level of more than NOK30 billion (US$2.8 billion) in 2024, including the May acquisition of Spanish renewables company Enerfin. In Norway, Statkraft has a record-high long-term investment program in wind and hydropower, including five major capacity upgrade projects. 

Simultaneously, the entire energy market has become more challenging. Energy prices are lower, and technology and capital costs have increased. Market regulations and support policies are delayed, and geopolitical uncertainty has increased.

The sharpening of the growth strategy follows Statkraft’s annual strategic review. The fundamental drivers of the energy transition continue to support Statkraft’s growth strategy, according to a release. Strong growth in demand for solar and wind power, driven by low technology costs, increased need for flexibility in the power system, and greater market complexity are drivers that fit Statkraft’s position and competitive advantages. 

The sharpened strategy means that Statkraft will: 

Prioritize value creation from Statkraft’s core businesses hydropower and market operations. Statkraft will be the largest hydropower company in Europe and will initiate at least five major capacity upgrade projects in Norway by 2030. 

Develop solar, onshore wind and battery storage with an annual rate of 2 GW to 2.5 GW from 2026 onwards (previous target was 2.5 GW to 3 GW from 2025 and 4 GW from 2030) and take an industrial role within offshore wind in Northern Europe, with the goal of developing 6 GW to 8 GW by 2040 (previous target was 10 GW). 

Contribute to an efficient energy market, enable industrial customers’ green transition, and be a leading provider of market solutions in Europe, with a significant global reach. 

Develop new green energy businesses, including becoming an industrial developer of green hydrogen with the goal of delivering 1 GW to 2 GW by 2035 (previous target was 2 GW by 2030).