Jul 21, 2025
Exploring Norway's Major Hydropower Initiatives
Norway is set to significantly increase its hydropower capacity through expansion projects and new initiatives. The nation, recognized for its robust and varied energy sector, recently announced a partnership with the U.S. Department of Energy (DoE) to enhance research and development in hydropower for both countries. Norway seeks to boost its hydropower output in response to growing domestic energy demands.
In July, the DoE extended its collaboration with Norway’s Ministry of Energy on hydropower R&D, building on an existing agreement. This partnership will facilitate the exchange of important information, tools, and technologies regarding marine energy and innovative hydropower solutions, aiming to lower energy costs and enhance grid stability.
U.S. Energy Secretary Chris Wright emphasized the importance of partnerships in fostering innovation, which strengthens the future of energy in America. He highlighted hydropower as a crucial resource for reliable, affordable electricity and noted the benefits of the agreement with Norway in leveraging shared expertise and advanced technologies.
Norway has made substantial investments in its hydropower sector recently, focusing on R&D, plant expansions, and new projects. In 2023, hydropower accounted for 89% of Norway’s electricity generation, with wind power at 9%, according to the International Energy Agency. In May, TRG Datacenters listed Norway as the second most energy-resilient country globally, following Iceland, due to its strong hydropower sector.
In February, Norway’s parliament voted to allow hydropower plants in protected rivers, facing pushback from environmental groups worried about wildlife. The legislation permits plants over 1 MW in protected areas if the societal benefits are "significant" and environmental impacts are "acceptable." Norway has nearly 400 protected waterways, and critics have accused the government of hastily pushing the bill without sufficient public consultation or environmental assessments.
In April, Locus Energy, part of SEB Nordic Energy, acquired a hydropower portfolio of 158 GWh, increasing its total to 410 GWh once fully operational. Richard Gavel, the Portfolio Manager, noted that this addition strengthens Locus Energy’s long-term strategy and cash flow profile.
In May, Statkraft, Norway's state-owned utility, applied for a license to upgrade its hydropower plants on the Numedalslågen river at an estimated cost of $390 million, aiming to boost electricity generation and lower utility bills. The Nore I plant has been operational since 1928, and Nore II since 1946. If approved, upgrades are expected to begin by 2030.
Statkraft is considering two options for the upgrade: merging the existing plants into a new facility within the mountain, which would increase capacity from 274 MW to 500 MW, or relocating the plants separately, boosting capacity by 65 MW. The company also applied for a license to expand its Mauranger plant from 250 MW to 880 MW in 2022 and plans to build a $590 million hydropower plant in Sunndal, pending approval.
CEO Birgitte Ringstad Vartdal emphasized the need to modernize many hydropower plants to meet rising electricity demand and the intermittent nature of other energy sources. The new Aura plant, she stated, would enhance capacity and energy generation without increasing water usage, aligning with future renewable energy needs.
Norway intends to keep investing heavily in hydropower to meet growing electricity demands and enhance cross-border power sharing. Collaboration with the U.S. will focus on R&D to lower costs and improve technology, alongside plans to expand existing plants and develop new facilities nationwide.
In July, the DoE extended its collaboration with Norway’s Ministry of Energy on hydropower R&D, building on an existing agreement. This partnership will facilitate the exchange of important information, tools, and technologies regarding marine energy and innovative hydropower solutions, aiming to lower energy costs and enhance grid stability.
U.S. Energy Secretary Chris Wright emphasized the importance of partnerships in fostering innovation, which strengthens the future of energy in America. He highlighted hydropower as a crucial resource for reliable, affordable electricity and noted the benefits of the agreement with Norway in leveraging shared expertise and advanced technologies.
Norway has made substantial investments in its hydropower sector recently, focusing on R&D, plant expansions, and new projects. In 2023, hydropower accounted for 89% of Norway’s electricity generation, with wind power at 9%, according to the International Energy Agency. In May, TRG Datacenters listed Norway as the second most energy-resilient country globally, following Iceland, due to its strong hydropower sector.
In February, Norway’s parliament voted to allow hydropower plants in protected rivers, facing pushback from environmental groups worried about wildlife. The legislation permits plants over 1 MW in protected areas if the societal benefits are "significant" and environmental impacts are "acceptable." Norway has nearly 400 protected waterways, and critics have accused the government of hastily pushing the bill without sufficient public consultation or environmental assessments.
In April, Locus Energy, part of SEB Nordic Energy, acquired a hydropower portfolio of 158 GWh, increasing its total to 410 GWh once fully operational. Richard Gavel, the Portfolio Manager, noted that this addition strengthens Locus Energy’s long-term strategy and cash flow profile.
In May, Statkraft, Norway's state-owned utility, applied for a license to upgrade its hydropower plants on the Numedalslågen river at an estimated cost of $390 million, aiming to boost electricity generation and lower utility bills. The Nore I plant has been operational since 1928, and Nore II since 1946. If approved, upgrades are expected to begin by 2030.
Statkraft is considering two options for the upgrade: merging the existing plants into a new facility within the mountain, which would increase capacity from 274 MW to 500 MW, or relocating the plants separately, boosting capacity by 65 MW. The company also applied for a license to expand its Mauranger plant from 250 MW to 880 MW in 2022 and plans to build a $590 million hydropower plant in Sunndal, pending approval.
CEO Birgitte Ringstad Vartdal emphasized the need to modernize many hydropower plants to meet rising electricity demand and the intermittent nature of other energy sources. The new Aura plant, she stated, would enhance capacity and energy generation without increasing water usage, aligning with future renewable energy needs.
Norway intends to keep investing heavily in hydropower to meet growing electricity demands and enhance cross-border power sharing. Collaboration with the U.S. will focus on R&D to lower costs and improve technology, alongside plans to expand existing plants and develop new facilities nationwide.