Statkraft to invest billions in renewable energy

The Norwegian government is proposing to bolster Statkraft SF’s equity by NOK 5 billion allowing the company to invest in green projects in Norway and abroad.
Statkraft to invest billions in renewable energy

The planned investments by the company will take place over the next four years. The government’s proposal to inject money into the company was adopted by the Norwegian parliament on 11th December. A reduction in the dividend received by the Ministry of Trade, Industry and Fisheries over the 2016-2018 period will result in an overall equity increase of NOK 10 billion which will enable Statkraft to acquire more capital in the market. This in turn will enable the company to make investments of NOK 60 billion.

Statkraft has established a strategy calling for major investments in renewable energy in Norway, Europe and emerging markets in Asia and South America.  

“Statkraft has a long-term ambition to grow as an international company within clean energy” said CEO Christian Rynning-Tønnesen. “In addition to implementing the investment decisions we have made, we are working on concrete projects in all countries where we operate. The projects are primarily within hydropower and wind power, but we are also exploring opportunities within solar energy and biomass.”

The company will open hydropower plants in Kargi, Turkey, and Cheves in Peru. The Kargi project is being constructed in Turkey’s Corum province in the north of the country. It will have an installed capacity of 102 MW and will supply electricity to 150,000 households. The Cheves project is located in the Peruvian Andes and will have a capacity of 168 MW. It will be able to supply 840 GWh of clean hydropower per year, replacing fossil fuel thermal power plants. Cheves is a UN-approved project to be developed under the Clean Development Mechanism (CDM) and it will be able to reduce Peru’s greenhouse gas emissions by 394,000 tonnes per year. Statkraft will also decide whether to continue with the Rapay hydropower project, also in Peru. This has been divided into two phases and could ultimately yield a total of 162 MW of new hydropower.

Statkraft’s plans for a major wind power project in Norway may be one of the largest ever investments made by the company in the country. The Fosen/Snillfjord project will be the subject of an investment decision during the course of 2015. The company is currently working hard with its partners in Fosen Vind AS to prepare the necessary documentation.

There are also plans for further growth in India and Brazil. Statkraft is working with Tata Power on plans to develop the 420 MW Dugar hydropower project in the Indian state of Himachal Pradesh.

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