Hydro is set to construct a new pumped storage power plant in Luster Municipality, Norway. Construction is expected to commence in 2025, with operations anticipated to begin in 2028 or 2029. The total investment for the project is estimated at around NOK1.2bn ($110m).
Once operational, the power plant will generate 84 GWh of renewable energy annually, which will primarily be utilised for industrial production.
The power plant will pump water from the Fivlemyrane reservoir, situated 1,018m above sea level, to the Illvatn reservoir, which is located at an elevation of 1,382m.
At the same time, the capacity of the Illvatn reservoir will be increased by constructing a new drainage tunnel, which will lower the lowest regulated water level.
This method aims to reduce water loss in the Fortun system during the summer months and enhance energy production during periods of high demand in the winter.
Hydro Energy executive vice president said: “We have carefully developed this project over an extended period, in close dialogue with authorities and the local community.
“With this project we can increase production, reservoir capacity and efficiency from our facilities in Fortun, as well as take better care of water resources with minimal environmental footprint. Our ambition for the project is ‘net-zero’ loss of prioritised nature.”
In April 2020, the Norwegian Ministry of Energy granted Hydro a concession to develop the Illvatn pumped storage power plant.
An application for a plan modification is currently under review by the Norwegian Water Resources and Energy Directorate (NVE). The project’s progress depends on a favourable outcome of the application, with the final investment decision expected by the second quarter of 2025.
Illvatn will be incorporated into Hydro Energy’s power portfolio, providing renewable energy to support industrial production in Norway.
Norway’s combination of abundant renewable energy resources and advanced technology has established its industry as a global leader. However, to further reduce emissions in existing industries and encourage the development of new ones, the country still requires an increase in renewable power supply at competitive prices.
Hydro currently produces aluminium in Norway with a carbon footprint approximately 75% lower than the global average. The company aims to achieve zero-carbon aluminium production by 2050.
The company is progressing the development of hydropower projects across several locations.
