Statkraft To Exit Some Markets To Prioritize Investments

Norway’s state-owned energy company Statkraft has further tweaked its strategic goals for continued profitable growth in the future by divesting its renewable energy assets in the 3 markets of the Netherlands, Croatia and India. Instead, the organization will train its lens on the ‘high-potential’ markets in the Nordics, Europe, and South America.  

The plan is to offload its solar, onshore wind and battery business in the Netherlands and Croatia, and over time sell its hydropower and solar assets in India.  

A sustainable growth target in India will require major investments, explained the company’s President and CEO Birgitte Ringstad Vartdal. It will now dedicate new investments outside Europe to South America, where ‘the opportunities to achieve scale and leverage our core capabilities are strong.’  

It will prioritize investments in hydropower within Norway, and grow in solar, wind and battery storage in the Nordics, Europe and South America to deliver between 2.0 GW and 2.5 GW from 2026. Statkraft scaled down its renewable energy targets in June 2024 with the appointment of Vartdal (see Statkraft’s New Leadership Tones Down Green Targets).  

“Despite geopolitical tensions and inflation, the cost competitiveness of renewable energy is driving strong growth in all energy market scenarios as projected by Statkraft and other leading analysts, presenting profitable growth opportunities worldwide,” stated Vartdal. “We have already sharpened our strategy to allocate capital to our core business, and now we are focusing our investments on fewer markets.” 

This strategy of focusing its investments in fewer markets will enable the company to build scale and strengthen its competitiveness and value creation, she added.  

Additionally, the company’s structure and leadership will also see changes from January 1, 2025. Going forward, Statkraft will axe the New Energy Solutions business, and create a new business area named Technology and Project Delivery to be led by Ingeborg Dårflot. This will leverage digitalization and AI for cost-effective delivery of construction projects.  

Statkraft has also won the European Union grant for up to €107 million in subsidies under the 4th Innovation Fund round for its 200 MW electrolysis plant in Germany, and a 50 MW heat pump system. It will produce up to 20,000 tons of renewable hydrogen and up to 50,000 MWh of green heat annually.