Statkraft around the world

Since the founding of the company in 1895, Statkraft has developed from a national company, focused on developing Norwegian hydro power resources, into a multinational company diversifying also into other sources of renewable energy. Today, with a total consolidated power generation of 56.3 TWh, Statkraft is the second largest supplier of electric power in the Nordics and Europe’s largest supplier of renewable energy.

The Group’s 356 power plants have a total installed capacity of 18 471 MW (Statkraft’s share). Hydropower is still the dominant technology with 81% of installed capacity followed by natural gas with 14%, wind power with 4% and bio-fuel with 0.2%. Most of the installed capacity is in Norway with 70%, next is Europe excluding the Nordics with 17%, Sweden with 9% and the rest of the world with 5%. Statkraft also owns shares in 31 district heating facilities in Norway and Sweden with a total installed capacity of 794 MW. 

The overview of consolidated plants shows the capacity of the plants that Statkraft fully consolidates in its financial reporting according to IFRS. The difference between con-solidated capacity and direct ownership (the pro-rata columns in the table) is mainly due to Statkraft’s investments in the companies BKK and Agder Energi, both classified as associates according to IFRS.

In accordance with Statkraft’s strategy, the project activity level has been high the last years, especially within wind and hydropower. Going forward, however, the Group’s investment programme will be scaled down due to lower power prices and the changes in the dividend policy.

In total, Statkraft invested NOK 13 557 million in 2015, of this NOK 3237 million was invested in Norway. Approximately three fifths of the total investments were made in new generating capacity. Maintenance investments are primarily in connection with Nordic hydropower. The largest investments in new capacity are in connection with wind power in Sweden and the UK, as well as international hydropower.

In Norway Statkraft decided to invest NOK 280 million in a full refurbishment of Øvre Røssåga power plant in Northern Norway. All major electromechanical components will be refurbished, and annual production will increase by 50 GWh.

Statkraft operates in emerging markets with anticipated high growth and increasing need for energy. Statkraft is focusing on selected markets where the Group’s hydropower expertise can create value. The operations include the Group’s hydropower activities in Southeast Europe, South America and South Asia, as well as the 50% shareholding in SN Power. Investments are often made together with local partners or international investors. The construction of the new hydropower plants Kargi (102 MW) in Turkey and Cheves (171 MW) in Peru were completed.

As regards to onshore wind power Statkraft, TrønderEnergi and the European investor consortium Nordic Wind Power DA have joined forces to realise Europe's largest onshore wind power project in Central-Norway. The six onshore wind farms will have a combined capacity of 1000 MW and the total investment will amount to approximately NOK 11 billion. Construction will commence in the second quarter of 2016 and commissioning will be completed in 2020. The wind farms will be built on the Fosen peninsula, on the island of Hitra and in Snillfjord, in a coastal area providing some of the best conditions for renewable energy production from wind in Europe. The projects' capacity is more than the current total installed capacity of wind power in Norway. Once completed and commissioned in 2020, the wind farms are expected to generate 3.4 TWh power annually.