Statkraft plans NOK 80bn Norwegian hydropower reinvestment

Statkraft plans to invest around NOK 80bn in Norwegian power generation over the next decade, with more than NOK 70bn allocated to hydropower.

The updated investment forecast is a significant increase on the NOK 44bn to NOK 67bn range presented in January 2024. Statkraft said the higher figure reflects a larger project portfolio, inflation, and an extended planning horizon.

Around half of the NOK 80bn programme will be directed toward major maintenance of existing assets to protect current generation capacity. The remaining half is allocated to upgrades, further development, new capacity, and increased output.

Many of Norway’s largest hydropower plants will require modernisation over the next decade. Statkraft has previously set an ambition to initiate at least five major upgrade projects by 2030, with work expected to increase capacity and improve the ability of plants to generate power when the system needs it most.

Projects under assessment include older hydropower assets such as Nore in Buskerud, which opened in 1928, Mår in Telemark, which opened in 1948, and Aura in Møre og Romsdal, which opened in 1953. In Alta, Statkraft plans to expand the existing facility from two to three generating units, allowing water that currently bypasses the plant during flood season to be used for generation.

The programme also covers dam reinforcement, replacement of critical technical equipment, and refurbishment of water tunnels. Stricter safety requirements and greater climate variability are increasing the need for major maintenance across older dams and power plants.

Hydropower occupies a different position from newer renewable technologies. Norway already has a large hydropower base, but long-lived assets still require sustained engineering investment if they are to retain capacity, safety, and flexibility. Turbines, generators, control systems, tunnels, dams, gates, transformers, and balance-of-plant equipment all have finite service lives, even when the plants themselves operate for many decades.

The flexibility value of hydropower is also rising as wind and solar output increases across Europe. Reservoir and dispatchable hydro assets can respond to periods of low variable renewable generation, high demand, and system stress. Modernisation therefore supports both generation output and system balancing capability.

The importance of flexible capacity is also visible in the UK system, where National Gas’s summer outlook raised the power-sector balancing question. The technologies and markets differ, but the underlying system requirement is consistent: higher renewable penetration increases the value of assets that can respond when demand and variable output diverge.

Statkraft also plans investment in wind power during the same 10-year period. Three of its wind farms are approaching the end of their operational lifetime, while new projects are under development. Hydropower upgrades are expected to improve flexibility and deliver modest increases in generation, while wind projects could provide larger additions of energy output.

The Norwegian context is distinct because hydropower already dominates national electricity generation. The challenge is not proving the technology, but renewing major assets built under different safety standards, climate assumptions, and market conditions. Licensing from the Norwegian Water Resources and Energy Directorate will be required for major hydropower measures, while wind projects will also depend on municipal approvals.

The programme signals sustained demand across civil engineering, electromechanical refurbishment, dam safety, power-station controls, waterway upgrades, and grid interfaces. It also reflects a wider European requirement: clean generation targets cannot be met only by building new assets. Existing low-carbon infrastructure has to be maintained, modernised, and made flexible enough to support a changing power system.