On Tuesday, the ribbon was cut for the Smådalselva hydropower plant. There was only one slight damper on the occasion.

“With this, on behalf of Samnanger Municipality, I would like to congratulate everyone involved—and declare the Smådalselva hydropower plant officially open,” says Karl Kollbotn.
While the mayor delivers the opening speech, Tor Egil Nilsen has the great honor of cutting the ribbon. He is a former landowner and was involved in the initial stages of the power plant project. Now, his son, Svein Erik Nilsen, has taken over both the farm and the land.
“With the opening of the Smådalselva hydropower plant, we mark not only the start of a new energy
source, but also a symbol of cooperation, determination, and perseverance,” says Mayor Kollbotn in his speech.
It has taken time
A full 18 years have passed since the Norwegian Water Resources and Energy Directorate (NVE) first granted a license for the development of Smådalselva in Tysse. However, because the power grid lacked the capacity to receive the production, the development had to be postponed.
“It has been a long gestation period,” says Bjarte Skår, Director of Business Development at Småkraft AS.

In 2022, NVE approved the project once again, and construction could begin. 19. In June of this year, the Smådalselva hydropower plant went online, and the electricity finally reached the public. It now supplies 450 households with power.
“It has gone very well so far. Everything has gone according to plan, and we haven’t had any teething problems,” says Skår.
A damper on the joy
“This is a day of celebration for us at Småkraft AS, for the landowners, and for the local community,” he says.
Småkraft is the largest small-scale hydropower developer in Europe. They own and operate over 250 power plants. Together, they produce enough electricity to supply as many as 125,000 households with power.
“This power plant is special to us. It is one of the latest licenses Småkraft has received, and we are excited about the future. We hope to contribute more renewable energy in the years to come,” says Skår.
But there is a setback: “We must be honest: the proposal put forward by the Labour Party to change the threshold for the resource rent tax is very negative for us,” says the director.
The government has prepared a consultation proposal in which they advocate for changing the threshold for resource rent tax from the current 10 MW to 1.5 MW.
“This will lead to significant losses for both Småkraft and the landowners. That private landowners should pay extra tax to the state for their land—it is quite strange and unfair,” Skår believes.
In a joint statement from the largest players in the small-scale hydropower industry, it is stated that the proposal has already had consequences. “This proposal has led to a complete halt in the sanctioning of new development projects. The uncertainty for investors and developers is now so great that further decisions are being put on hold.”

Celebrating the completion of the work
Even though not everything is rosy, this is a day of celebration. Småkraft AS turns on the turbine so that everyone present can hear it in action.
“Today we shall celebrate,” says Skår.
Landowner Svein Erik Nilsen is also celebrating.
“It’s great that this came to fruition. I am very pleased. But it will also be nice to get back to normal and return to regular farm work. The smell of manure is part of the charm of Samnanger,” Nilsen says.
He adds:
“As a farmer, it’s also nice to have extra income from power.”
Karl Kollbotn is pleased that the fine weather held up during the opening. But now, both he and Småkraft are ready for the major autumn storms.