Statkraft scraps 1GW Norwegian wind projects

Energy company Statkraft has cancelled its investment in two wind projects in Central Norway. The lower power prices in the region, a growing power surplus and a continued moderate demand […]

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By Jacqueline Echevarria

Energy company Statkraft has cancelled its investment in two wind projects in Central Norway.

The lower power prices in the region, a growing power surplus and a continued moderate demand for electricity have reduced the long-term price expectations, it states.

It added its review showed the projects, which were estimated to cost around NOK11 billion (£0.88bn) would not be profitable.

The wind farms were expected to have a total capacity of 1,000MW and produce 3.25TWh of electricity a year.

Christian Rynning-Tønnesen, Statkraft President and CEO said: “Statkraft finds it regrettable that the projects cannot be realised. The authorities have contributed by facilitating wind power development, for example through improving the depreciation rules. Unfortunately, the market development is such that it is still not commercially responsible to invest in these projects.”