Statkraft, under the direction of new CEO Birgitte Ringstad Vartdal, has announced a strategy aimed at cutting costs by NOK 2.9 billion annually by 2027. This initiative comes as the company refines its focus on fewer technologies and markets to enhance competitiveness and value creation.
In light of global uncertainties, increasing costs, and declining power prices, Statkraft plans to shift its strategy to prioritize near-term cash flow over rapid growth. This involves concentrating investments in hydropower and wind projects, particularly in Norway and Sweden, while also maintaining its existing asset base. Statkraft intends to invest between NOK 16 billion and NOK 20 billion each year over the next few years.
Despite this shift, Statkraft will continue to pursue growth in solar, wind, battery storage, and grid services across Europe and South America, albeit at a slower pace than earlier projections. As part of this strategic adjustment, the company will discontinue development of new hydrogen projects and offshore wind initiatives, including the upcoming Utsira Nord allocation in Norway. However, the North Irish Sea Array (NISA) project will still move forward.
Additionally, Statkraft is reassessing its investments in solar, wind, and battery projects in Poland and will cease development activities in Portugal while maintaining operations in both countries. These changes align with ongoing divestments, including the sale of district heating and biofuel operations in the Nordics, along with businesses in Croatia, the Netherlands, and India.
By narrowing its technological and geographical focus, Statkraft aims to simplify its operations and achieve the targeted cost savings. Specific measures, including potential staff reductions, will be defined in the annual business planning process later this year.
Vartdal expressed confidence in the company’s approach, stating, “By concentrating on our core competitive advantages and focusing on profitable opportunities, we will drive growth and value creation while supporting energy security and the transition to renewable energy.”
Statkraft’s updated strategy reflects a pragmatic response to current market conditions, aiming to bolster financial health while continuing to invest in critical renewable energy technologies.
