Norway’s two largest power producers Statkraft and Hydro have finalized a major agreement to secure additional electricity supply. The deal addresses concerns over dwindling power availability as contracts for several key plants approach expiration.
Statkraft CEO Christian Rynning-Tønnesen and Hydro CEO Hilde Merete Aasheim stated the new contract will stabilize the grid amid growing demand. Both companies highlighted the urgency of the situation, noting that existing power agreements for some facilities will expire within months.
The agreement covers renewable energy sources, primarily from hydroelectric plants. It ensures continued production at critical sites while new infrastructure projects ramp up. Officials did not disclose the contract’s duration or financial terms.
Analysts warn Norway’s power deficit could worsen without such measures. The country has faced volatile energy prices in recent years due to fluctuating hydropower output. The new deal aims to mitigate risks as seasonal variations impact supply.
Industry observers expect more contracts to expire in the coming years. The government is reviewing policies to encourage faster development of wind and solar projects to reduce reliance on hydroelectricity.
Source: e24.no