State-owned Norwegian hydropower and renewable energy production company Statkraft announced today the launch of a major investment program, with plans to invest up to €6 billion in its hydro and wind facilities, and for the construction of new wind farms.

Hydropower accounts for the significant majority of Norway’s energy mix, at around 88% of total power production, according to the Norwegian Ministry of Petroleum and Energy, with wind power from 65 wind farms accounting for approximately 11%. According to Statkraft, Norway’s future increased power needs will be mainly covered by new wind power, with hydropower remaining “the backbone” of the energy system.

Commenting on the new investment plan, Christian Rynning-Tønnesen, CEO of Statkraft, said:

“Today, Statkraft is presenting the largest investment program of its kind in hydro- and wind power in Norway for decades. This will be a major contribution to the energy system in Norway and to the green transition. It will also have positive effects on the Nordic and European energy markets.”

The new investment program includes plans for €1.8 – €3 billion in upgrades and transformations of hydroelectric power plants, €1.2 – €2 billion in rehabilitation of dams and modernization of older power plants, and around €1 billion in renewal of existing and construction of new onshore wind farms, resulting in wind power production more than doubling, and a 20% increase in hydro power.

The company said that the hydropower plant upgrades will take place over the coming years, and that it is currently considering four possible wind power projects in Finnmark, Northern Norway, in addition to several new wind power projects throughout Norway.

Rynning-Tønnesen added:

“The future power system in Norway and Europe will need both more power and increased flexibility. Phasing in more intermittent power such as wind and solar through increased capacity and flexibility in hydropower is key to succeed with the transition to a net zero future.”