Statkraft to divest renewables in three countries amid strategic shift

Norwegian state-owned power company Statkraft AS intends to divest its renewable energy businesses across several countries to keep a tighter focus on the Nordics, Europe and South America.

The plan will see Statkraft pull out of the onshore wind, solar and battery businesses in the Netherlands and Croatia, and over time, divest its hydropower and solar assets in India, the company said on Wednesday.

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In India, further sustainable growth would require significant investments, so Statkraft will be redirecting new investments to South America, Statkraft CEO Birgitte Ringstad Vartdal said in the company's press release.

The Dutch trading operations, on the other hand, will remain intact, Vartdal told Reuters.

The retreat is part of Statkraft’s “sharpened strategy” announced in June this year, which not only promised selective divestments but also scaled back targets for solar, onshore and offshore wind, battery storage and green hydrogen.

“Statkraft has built a strong position as Europe’s largest producer of renewable energy and a significant player in selected markets in South America, with an attractive portfolio of profitable renewable projects and a track record of profitable investments and solid returns. We have already sharpened our strategy to allocate capital to our core business, and now we are focusing our investments on fewer markets,” Vartdal said.

"This will build scale and strengthen our competitiveness and value creation," she said.

To support its sharpened strategy, Statkraft will restructure the organisation internally, effective January 1, 2025. This will include creating a new business area, called Technology and Project Delivery, and discontinuing the New Energy Solutions area.