Rullestad, March 11, 2024
Together with Sunnhordland Kraftlag, Småkraft AS is breaking ground to construct three new power plants in the Western energy area. The development project will add 89 GWh to the grid and will be the largest new renewable energy project in Norway so far in 2024.
Småkraft and SKL each own 50 percent of the project, which has a budget of NOK 500 million. The development decision will trigger additional investments in the area, bringing total investments to NOK 700 million. The project is expected to be completed in autumn 2026 and will then be able to deliver electricity equivalent to 4,450 households, from a municipality with approximately 4,000 residents.
The three power plants in the South-West energy area (N02) are Bordalen, Skromme, and Kvernhuselva power plants, located in the Rullestad/Åkrafjorden area. Several stakeholders have worked extensively and diligently to realize this project.
– Together with impressively steadfast landowners, we have worked on this project since 2005. We must also commend NVE for acting constructively to bring the project to completion, Sparebanken Vest for financing the power plant development, and Kraftpartnar AS for thinking innovatively to develop the power plants, says Terje Vedeler, Chief Executive Officer of Småkraft AS.
The project is the first to be realized under the new, investment-neutral ground rent tax regime. Småkraft AS, with headquarters in Bergen, can report that the western energy areas in Norway are developing the most new power. Småkraft will be responsible for the construction of the power stations, while SKL will be responsible for operation and maintenance.
– SKL is actively working to expand and further develop our portfolio of sustainable, renewable energy, and new small-scale hydropower projects like this are important. We look forward to implementing this major power initiative together with Småkraft and are pleased with the opportunities that more power and upgraded grid infrastructure provide the region, says John Martin Mjånes, Chief Executive Officer of Sunnhordland Kraftlag AS.
Småkraft AS and SKL currently operate over 200 small-scale hydropower plants. Water rights are leased from landowners through long-term agreements. The collaboration model creates particularly significant local economic ripple effects.
Calculations from Småkraft show that the new project in Rullestad over the next 70 years will generate the following ripple effects*:
- Direct payments to the municipality in the form of taxes and fees exceeding NOK 500 million.
- Additional ripple effects on local suppliers and partners exceeding NOK 400 million.
- Regional ripple effects in Western Norway exceeding NOK 1.5 billion. These are payments to regional contractors, grid companies, the county authority, and other companies owned by regional municipalities and counties.
- Taxes and fees going directly to the state amounting to nearly NOK 3.5 billion
Many Small Streams
While offshore wind, onshore wind, and nuclear power generate major headlines, it is small power plants under 10 MW that together will contribute more than half of all new renewable production in Norway. Small-scale hydropower plants have modest climate and environmental footprints, low conflict levels, and rapid development. The sum of “many small streams” is significant. A full 57% of the production currently being developed comes from small hydropower projects.**
With 22 projects and 316 GWh under construction, Småkraft AS alone accounts for over 25% of all new Norwegian renewable capacity currently being built. Before year-end, Småkraft submitted concession applications for an additional 16 small-scale hydropower plants, totaling 165 GWh. Power plant construction and power production create jobs and contribute significant revenues to numerous Norwegian municipalities.
About Småkraft
- Småkraft owns and operates 232 power plants in Norway and Sweden, making it Europe’s largest small-scale hydropower operator.
- Collaborates with over 900 landowners throughout Norway to produce more than 2,000 GWh of renewable electricity annually. This is sufficient electricity to cover the annual consumption of over 100,000 households
- 32 employees at offices in Bergen, Sandnes, Lillestrøm, Harstad, Flatanger, Verdal, Oslo, and Gävle in Sweden
About Sunnhordland Kraftlag
- Sunnhordland Kraftlag AS (SKL) is a dedicated group focused on the production and development of sustainable, renewable hydropower.
- Power production consists of both regulated power and unregulated small-scale hydropower, owned independently or together with local landowners and industrial stakeholders.
- Total production of clean, sustainable energy of approximately 2,700 GWh annually
- A total of 65 employees at the company’s locations in Matre, Etne, and Stord.
For more information, contact: Terje Vedeler, Chief Executive Officer, +47 907 26 568
