Norway’s hydro utility sees water value rise as it preserves reservoir levels for winter

Statkraft has seen a rise in the value of its stored water, as the Norwegian company reserves supplies to feed its hydro power plants during the company winter. In a market update Chief Executive Christian Rynning-Tønnesen said, “The combination of dry weather and higher risk of gas rationing for the coming winter in Europe, particularly in Germany, has increased Statkraft’s water values. The importance of saving water for the coming winter is increasing and has resulted in lower Norwegian hydropower generation in the quarter”.
The company announced plans to upgrade and expand its hydropower assets, which provide an important balancing function. It aims to start at least five major hydropower projects by 2030. In June, it sought a licence from the Norwegian Water Resources and Energy Directorate to increase the capacity of the Folgefonn power scheme in Hardange from 250MW to 880MW – its first large hydropower licence application in 40 years. Norway’s hydro reservoirs are largely filled annually by snowmelt.
The company said the average Nordic system price during the quarter was €121/MWh compared with €42/MWh in the same quarter in 2021 as it announced more ambitious growth plans, because Rynning-Tønnesen said, “The energy markets are changing faster than ever and there is a sharp increase in demand for renewable energy”. He said Statkraft would establish separate business areas for three geographical regions – Nordic, Europe and International. To strengthen the development of new business opportunities within the green energy transition, New Energy Solutions will be established as a separate business area.
The company said it aimed to invest in offshore wind, solar and battery storage across all its markets, to be a leading developer of green hydrogen in Norway and Sweden (with 2GW of green hydrogen by 2030) and to broaden its geographical scope outside the Nordics.

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