Sian Crampsie
Statkraft is to alter its investment plans following changes by the Norwegian government to the company’s financial terms.
The government-owned firm says that it will no longer be able to invest in new offshore wind energy projects, including Dogger Bank.
Some international hydropower projects may also be postponed, Statkraft said.
"Offshore wind power is capital intensive. The reduced financial terms from the owner entail that it is not possible for Statkraft to invest in new offshore wind projects," said CEO Christian Rynning-Tønnesen.
Specifically, Statkraft will not invest in Dogger Bank, which is expected to be the world’s largest offshore wind farm. It will participate, but not invest further in, the Triton Knoll project.
Statkraft added that the Dudgeon wind farm project is unaffected by its decision. It will maintain its holding Sheringham Shoal, which started operating in 2012, but review its ownership strategy at a later date.
Statkraft is part of the Forewind consortium developing the 4.8 GW Dogger Bank project off the east coast of the UK.
"Within International Hydropower there are opportunities for developing profitable projects in the longer term, but at this point we will consider to postpone the development of some new projects. Going forward we will focus on improving efficiency and profitability in existing assets," said Rynning-Tønnesen.
Statkraft’s revenue has been hurt by low European power prices, which fell to a 15-year low in the third quarter. It is changing its investment plans in order to be able continuing paying a dividend to the Norwegian government.
