Statkraft halts wind power planning in Central Norway

04.06.2015 09:00 | pressrelease

Statkraft has decided not to invest in the Fosen and Snillfjord projects in Central Norway. Lower power and electricity certificate prices in the Nordic region have made the projects unprofitable.

Power prices in the Nordic power market are relatively low. A growing power surplus and continued moderate demand for electricity have reduced the long-term price ex-pectations. Updated analyses therefore show that the projects in central Norway will not be profitable.

“Statkraft finds it regrettable that the projects cannot be realised. The authorities have contributed by facilitating wind power development, for example through improving the depreciation rules. Unfortunately, the market development is such that it is still not commercially responsible to invest in these projects,” says President and CEO Christian Rynning-Tønnesen.

Statkraft will continue to make substantial investments in Norwegian hydropower, as well as further development of district heating. Over the longer term, wind power is also expected to become competitive in the Nordic region.

The wind power projects in Central Norway were planned with a total installed capacity of 1000 MW and an annual production of approx. 3.25 TWh. The development costs were estimated at approx. NOK 11 billion. The projects are owned by Statkraft, Agder Energi, TrønderEnergi and Nord-Trøndelag Elektrisitetsverk (NTE).