Statkraft sharpens future growth strategy, prioritises hydropower

Ringedal Dam in Norway. Photo: Lars Petter Pettersen

Statkraft announced that it will focus on expanding its core business and optimizing its portfolio through selective sales, prioritizing investments in Norwegian hydropower, market operations and growth in the solar, wind and battery sectors in Europe and selected international markets. The company also plans to sell off its heating business and seek investors for its biofuel company Silva Green Fuel and electric vehicle charging company Mer.

“In recent years, Statkraft has built a strong position and an attractive portfolio of profitable renewable energy projects,” explained President and CEO Birgitte Ringstad Vartdal. “The transition from fossil energy to renewable energy is happening at an accelerating pace in Europe and around the world. We have a strong competitive advantage and have created tremendous value over time. However, market conditions for the entire renewable energy industry have become more challenging. That’s why we’re refining our strategy to allocate capital to opportunities that generate the greatest value and best strategic fit.”

Statkraft has developed a significant portfolio of power plants with a total capacity of 21 GW, along with a flexible development portfolio of net profitable projects with a total capacity of 21 GW. The company has committed to large investments in the coming years, with over NOK 30 billion planned for 2024, including the acquisition of Spanish renewable energy company Enerfin in May. In Norway, Statkraft has a long-term investment program in wind and hydropower, including five major capacity modernization projects.

Despite these plans, the energy market has become more difficult. Energy prices are lower and technology and capital costs have increased. Market regulations and support policies are lagging and geopolitical uncertainty is growing.

This strategic adjustment follows Statkraft’s annual strategic review, the first with Ringstad Vartdal as President and CEO. The fundamental drivers of the energy transition continue to support Statkraft’s growth strategy, with strong demand for solar and wind energy, increased demand for flexibility in the energy system and greater market complexity, which fits well with Statkraft’s competitive advantages.

“Statkraft has a unique and strategic position in flexible production, experience in weather-based systems and strong analytical and market competences. Combined with a capable and motivated organization, this makes the company well-positioned to grow, scale and compete in the rapidly growing renewable energy market,” Ringstad Vartdal said.

Statkraft’s growth strategy is based on four pillars: delivering clean flexibility through hydropower, expanding its solar, wind and battery storage businesses, delivering green market solutions to customers, and scaling new green energy technologies.

The revised strategy includes:

Prioritizing value creation through hydropower and market activities, with plans for at least five major capacity modernization projects in Norway by 2030.
Develop 2-2.5 GW of solar, onshore wind and battery storage per year from 2026 and aim to generate 6-8 GW of offshore wind in Northern Europe by 2040.
Contributing to an efficient energy market and supporting the green transformation of industrial customers.
Developing new green energy businesses, including green hydrogen, with the goal of delivering 1-2 GW by 2035.

“With a well-developed strategy, we are well positioned to provide both good added value to the owner and to be a strong driving force for the energy transformation in Norway, Europe and the world,” Ringstad Vartdal said.

Sign up for our weekly news digest!