Statkraft Secures 8.8 TWh Long-Term Power Deal with Hydro for 2031-2040
Event summary
- Statkraft and Hydro Energi signed a long-term power purchase agreement (PPA) for 876 GWh annually from 2031 to 2040, totaling 8.8 TWh.
- This is the third long-term PPA between Statkraft and Hydro in 2026, following earlier agreements for 0.9 TWh/year in 2029-2030 and 1.3 TWh/year in 2031-2038.
- The power will be delivered in Norwegian electricity price area NO5.
- Hydro is also developing new renewable power projects to meet future demand.
The big picture
This agreement reinforces Statkraft’s dominance in the Norwegian renewable energy market and provides Hydro with stable, low-carbon power for its aluminium production. The deal is part of a broader trend of long-term PPAs reducing risk and ensuring industrial competitiveness in energy-intensive sectors. Statkraft’s strategy of securing multi-decade contracts aligns with Hydro’s need for predictable power prices to support its low-carbon aluminium goals.
What we're watching
- Industry Dependence
- How Hydro’s reliance on long-term contracts with Statkraft will affect its flexibility in power sourcing.
- Renewable Expansion
- The pace at which Hydro develops its own renewable energy projects to supplement contracted power.
- Market Dynamics
- Whether Statkraft can maintain its position as the leading supplier of power to Norwegian industry amid increasing competition.
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