Statkraft to spend USD 1.2bn on renewables each year through 2025

Norwegian state-owned utility Statkraft AS intends to spend about NOK 10 billion (USD 1.23bn/EUR 1.05bn) a year on renewables in the period 2019-2025, with a focus on hydro, wind and solar power.

The company plans large upgrades of Nordic hydropower capacity, but also targets reaching 6,000 MW of onshore wind and 2,000 MW of solar until 2025, it said in a statement on Wednesday. The renewal of domestic hydropower plants is expected to take up an investment of about NOK 1.2 billion.

From a geographic point of view, Statkraft plans to direct 26% of its annual investments towards developments at home, thus making Norway its largest single market for investments. About 42% of the overall spending will be concentrated in the rest of Europe, while 32% will be distributed outside of Europe. Statkraft noted that substantial growth will be added to South America and India, where it is already present.

The company’s new strategy is focused on developing, producing and trading energy, including buying and selling renewable power for other companies, it added.

Statkraft intends to use earnings from existing businesses plus the proceeds from divestments of shares in completed solar and wind projects to finance its future investments.

(NOK 1.0 = USD 0.123/EUR 0.105)

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