Outlook

A power surplus is expected to characterise the Nordic region for the next few years, and Nordic power prices are expected to be somewhat lower than in 2013

Statkraft's large reservoir capacity with both seasonal and multiple-year reservoirs provides the Group with ample flexibility to manage water resources efficiently. Long-term power contracts also help stabilise the Group's earnings. New production capacity is under construction, and will raise revenues when completed.

In an international perspective, there is a growing demand for renewable energy. Statkraft is well-positioned for fulfilling its ambition to strengthen its position as a leading supplier of clean energy. Norwegian and Nordic hydropower represents the majority of Statkraft's activities. Statkraft is entering a period of major investments to rehabilitate the old hydropower plants in Norway and Sweden, in parallel with investments in new projects within hydropower and wind power internationally.

It is expected that the EU will implement additional initiatives in the direction of an energy system with less carbon emissions and a stronger focus on security of supply and energy efficiency. This will contribute to new business opportunities within renewable power production and sale of services and products to small-scale power producers. As Europe's largest producer of renewable energy, Statkraft has a strong market position and can play a significant role in the energy conversion. 

In emerging markets, hydropower will be a profitable and climate-friendly source of energy. Statkraft is well positioned here, and has ambitions of further growth based on the Group's core expertise within project development, operation and maintenance. The new long-term cooperation agreement with Norfund will result in the integration of the undertakings in South America and South Asia in Statkraft, and further investments in SN Power. The Group's core expertise within operations, maintenance and project management will be further reinforced.