Statkraft Elevates Strategy to Enhance Renewable Energy Leadership
Statkraft Enhances Strategic Focus on Core Competencies
Statkraft, Europe's largest producer of renewable energy, aims to further solidify its competitive edge by prioritizing its versatile hydropower fleet in the Nordics while expanding its solar, wind, and battery operations in Europe and South America.
Refined Strategic Approach Under New Leadership
Under the new CEO, Birgitte Ringstad Vartdal, Statkraft has streamlined its strategy to focus on fewer technologies and markets to strengthen competitiveness and generate value. Although strong underlying drivers exist, the transition to renewable energy is facing challenges due to global uncertainties, increased costs, and a decline in power prices. The revised approach emphasizes immediate cash flow rather than just volume growth, aiming to decrease complexity and operational costs.
Prioritizing Profitable Investments
“By concentrating on our core competitive advantages and prioritizing investments in near-term profitable opportunities, we will continue to grow and create value, while significantly enhancing energy security and supporting the transition,” states Vartdal.
Investment Plans and Project Pipelines
Statkraft has plans to invest NOK 16–20 billion annually in the coming years. This includes significant upgrades to hydropower capacities in Norway and the maintenance of its extensive operational asset fleet, alongside onshore wind developments in Sweden and Norway. The company has a robust pipeline of projects across Europe and South America and will continue its expansion in solar, wind, batteries, and grid services, albeit with a slower growth rate than initially planned.
Shifting Focus on Development Projects
As part of this new strategy, Statkraft announced the cessation of new hydrogen project developments. It will also halt activities related to new offshore wind projects, including the upcoming Utsira Nord allocation round in Norway, but will continue with the North Irish Sea Array (NISA) project. Moreover, the company is reassessing its investments in solar, wind, and batteries in Poland while ceasing development efforts in Portugal, although market activities in these areas will persist.
Reducing Complexity and Enhancing Efficiency
Statkraft's strategic shift is not solely focused on new project development. By narrowing its investment scope, the company anticipates a reduction in operational complexity, with a target of lowering payroll and operational costs by NOK 2.9 billion annually by 2027—equating to a 15% reduction compared to previous estimates.
Support for Employees in Transitional Times
“Statkraft must adapt to the changing market dynamics and heightened geopolitical uncertainties. This also impacts our most valuable asset—our people. We are committed to minimizing uncertainty and addressing the challenges faced by our workforce,” Vartdal emphasizes.
Statkraft’s Legacy of Value Creation
Despite these challenges, Statkraft has consistently delivered significant value, returning NOK 59 billion in dividends to its shareholders and more than doubling equity to over NOK 300 billion since 2018. The diverse portfolio of renewable technologies positions Statkraft strongly in the market.
The Role of Renewable Technologies in Energy Security
“Statkraft’s complementary renewable technologies across various regions, paired with our deep market knowledge, equip us to sustain value creation and contribute to energy security while playing a vital role in the energy transition. As we celebrate Statkraft’s 130th anniversary this year, we maintain a long-term perspective. While geopolitical challenges may slow the energy transition, they will not halt it,” adds Vartdal.
Contact Information for Further Engagement
For further information, please contact:
Media:
International Media Relations Lead, Marte Lerberg Kopstad, tel: +47 995 22 026, e-mail: mlk@statkraft.com
Head of Norway Media Relations, Andreas Tinglum, tel: +47 930 01 773, e-mail: andreas.tinglum@statkraft.com
Debt Capital Markets:
Vice President Stephan Skaane, tel: +47 905 13 652, e-mail: stephan.skaane@statkraft.com
Senior Financial Advisor Arild Ratikainen, tel: +47 971 74 132, e-mail: arild.ratikainen@statkraft.com
About Statkraft
Statkraft is a prominent player in worldwide hydropower and the foremost generator of renewable energy in Europe. The Group engages in hydropower, wind energy, solar energy, gas-fired power, and district heating supply. With around 7,000 employees and operations in over 20 countries, Statkraft continues to innovate in energy market operations.
Frequently Asked Questions
What are Statkraft's main strategic focuses now?
Statkraft is focusing on its core hydropower fleet and investments in solar, wind, and battery technologies, while aiming to strengthen profitability in fewer markets.
Why did Statkraft stop certain project developments?
The company halted new hydrogen and offshore wind projects to concentrate its resources on more immediate and profitable opportunities amidst current market conditions.
How does Statkraft plan to reduce operational costs?
The organization plans to reduce payroll and operating expenses by NOK 2.9 billion annually by 2027 through decreased complexity in its operations.
What has been Statkraft's contribution to shareholders?
Since 2018, Statkraft has returned NOK 59 billion in dividends and significantly increased its equity value, reaffirming its commitment to shareholders.
What is Statkraft's long-term vision amidst market challenges?
Statkraft aims to maintain a long-term perspective, continuing to contribute to energy security and push for the energy transition, even in the face of geopolitical uncertainties.
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