Statkraft To Prioritize Profitable Technologies, In Fewer Markets

Norway’s state-owned utility Statkraft plans to prioritize its financial focus on near-term profitable technologies such as solar, wind and batteries, but in fewer markets, under its new strategic review.

The management says it will assess its solar PV, wind and storage investments in Poland and close down development activities in Portugal.  

As per its latest plans, the company will invest NOK 16 billion to NOK 20 billion annually over the coming years, including in its project pipeline in solar, wind, batteries, and grid services in Europe and South America, but at a lower growth rate than previously planned. Offshore wind projects in Sweden and Norway will also be prioritized.  

As announced previously, it will not build any new hydropower projects, but will invest in upgrading the existing infrastructure of its assets in Norway.  

The focus will be on placing near-term cash flow over volume growth, and reducing complexity and cost, according to the management.  

By 2027, it targets to reduce payroll and other operating expenses, with around NOK 2.9 billion annually, a 15% reduction compared to its previous estimate for 2025. This should lead to layoffs. The management will identify redundancies in H2 2025. 

“Statkraft needs to adapt to the changing market and increased geopolitical uncertainty. Unfortunately, this also impacts our most important asset: Our people. We will do what we can to limit uncertainty and mitigate negative effects on employees,” said Statkraft President and CEO Brigitte Ringstad Vartdal.

Previously, blaming challenging market conditions, Statkraft's CEO scaled down its renewable energy targets in June 2024 to between 2.0 GW and 2.5 GW from 2026 and onwards for solar, onshore wind and battery storage, while focusing on hydropower. 

In October 2024, it announced plans to exit solar, wind and battery business in the Netherlands and Croatia, while focusing on high-potential markets of the Nordics, Europe and South America as it chased profitable growth (see Statkraft To Exit Some Markets To Prioritize Investments).    

Announcing the latest strategic review, Vartdal added, “At this time, Statkraft will prioritise our financial capacity on near term profitable technologies, such as solar, wind and batteries in fewer markets. We have been successful in developing an attractive portfolio in several European markets. As we need to prioritise, parts of the portfolio will benefit from getting new owners.” 

She shared, “Offshore wind will play an important role in the power mix in Europe, but the pace of development of the industry has been slower than previously forecasted, and this has impacted the ability to drive down costs in the short term.”