Major investment in hydropower and the power grid

In short

• Å Energi plans to invest more than NOK 30 billion over the next ten years in hydropower and the electricity grid to strengthen security of supply, reduce emissions and support the green transition in Norway.
• The investments include upgrades to existing and new hydropower plants, as well as large-scale expansion and modernisation of the power grid through its subsidiary Glitre Nett.
• Hydropower’s flexibility and storage capacity make it a key enabler for balancing renewable energy and enabling new industry and jobs.

Norway needs more renewable power in order to reduce greenhouse gas emissions and achieve the goals we have set for becoming a low-emission society.

In addition, increased renewable power production is essential to ensure competitive electricity prices and to develop new industries and jobs.

“That is why we are now making major investments in several of our existing hydropower plants and exploring opportunities to develop new power plants,” says Jan Erik Eldor, Executive Vice President Hydropower at Å Energi.

A key factor in a sustainable future

In January 2024, the Group announced a major investment initiative in hydropower and the power grid. Since then, several upgrades, acquisitions and new projects have been initiated and completed, creating significant value for both owners and society.

“By upgrading and expanding existing power plants, we can both improve the power system’s capacity balance and contribute more electricity,” says Eldor.

At the same time, efficiency improvements in existing power plants alone are not sufficient to meet the expected increase in demand for renewable power.

“That is why we are also developing and building new hydropower plants,” he continues.

Å Energi’s subsidiary Glitre Nett will carry out a historically ambitious expansion of the electricity grid over the next decade.

“We will expand and develop the power grid to facilitate the green transition, and we are already underway with a large number of projects. At the same time, we must ensure efficient operations, continued high security of supply and increased utilisation of today’s electricity grid,” says Tore Morten Wetterhus, Executive Vice President Grid at Å Energi.

The many qualities of hydropower

The large-scale expansion of wind and solar power in Europe makes security of supply a challenge when there is no wind and the sun is not shining. In Norway, dam systems make it possible to store water when electricity demand is low. This storage capacity helps ensure access to water—and thus electricity—even during dry periods.

Regulation of waterways also helps limit damage from flooding and extreme weather events, which are expected to become more frequent in the years ahead.