Statkraft scales back renewables development ambition

Norwegian state-owned utility Statkraft AS on Thursday said it is sharpening its growth strategy, including trimming down targets, as the renewable energy industry has become more challenging.

The move follows Statkraft’s annual strategic review, the first under Birgitte Ringstad Vartdal who took over as chief executive earlier this year.

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The company plans to allocate its capital to the most value-creating opportunities with the best strategic fit, Ringstad Vartdal said. It will prioritise growth of its core business and optimise its portfolio through selective divestments. Statkraft intends to divest the district heating business and find investors in the biofuels company Silva Green Fuel and the EV charging company Mer.

The company said its growth strategy remains built around four pillars, namely provide clean flexibility – leveraging hydropower; grow in solar, wind and battery storage; deliver green market solutions to customers; and scale new green energy technologies.

Statkraft’s development ambitions in solar, onshore wind and battery storage are reduced to an annual development rate of 2-2.5 GW from 2026 and onwards, compared to a previous target of 2.5-3 GW from 2025 and 4 GW from 2030. Statkraft now aims to develop 6-8 GW of offshore wind in Northern Europe by 2040, down from 10 GW, previously.

The green hydrogen goal is revised to delivering 1-2 GW by 2035 from 2 GW by 2030.

The sharpened strategy comes against the backdrop of a more challenging energy market with lower energy prices and higher technology and capital costs. In addition, market regulations and support policies are delayed, and geopolitical uncertainty has increased, the company noted.

Statkraft increased its ambition on renewable energy targets just two years ago.

“Statkraft has a unique and strategic position in flexible production, experience with weather-based systems, and strong analysis and market competencies. Together with a capable and motivated organisation, this makes the company well prepared to grow, build scale and compete in a rapidly growing renewable market,” commented Ringstad Vartdal.