Statkraft to Cut Complexity and Costs by NOK 2.9 Billion Annually by 2027

Last year, under the leadership of new CEO Birgitte Ringstad Vartdal, Statkraft refined its strategy to concentrate on fewer technologies and markets in order to achieve greater scale, competitiveness, and value creation. Although the long-term outlook for the energy transition remains positive, its progress has slowed due to rising global uncertainty, increased costs, and lower power prices. Statkraft’s updated strategy emphasizes core activities, prioritizing near-term cash flow over aggressive volume growth while working to reduce complexity and costs. The company plans to invest NOK 16–20 billion annually in the coming years, with a focus on upgrading hydropower capacity in Norway, maintaining its existing asset base, and continuing onshore wind development in Sweden and Norway. While growth will continue in solar, wind, battery storage, and grid services across Europe and South America, it will proceed at a more measured pace than previously anticipated.

In line with this strategic shift, Statkraft announced in May that it will cease development of new hydrogen projects and halt involvement in new offshore wind ventures, including the upcoming Utsira Nord allocation round in Norway—though development of the North Irish Sea Array (NISA) will continue. The company is also reevaluating its investments in solar, wind, and batteries in Poland and will end development efforts in Portugal, while maintaining market operations in both countries. These changes complement previously initiated divestment processes, including the sale of district heating and biofuel operations in the Nordics, as well as business activities in Croatia, the Netherlands, and India. By narrowing its technological and geographical focus, Statkraft aims to streamline operations and achieve annual cost savings of approximately NOK 2.9 billion by 2027—a 15 percent reduction from 2025 projections. Specific cost-cutting measures, including potential staff reductions, will be determined through the annual business planning process later this year.

“By concentrating on our core competitive advantages and prioritising investments in near term profitable opportunities, we will be able to continue our growth and value creation, while contributing significantly to the energy security and energy transition,” said Statkraft President and CEO Birgitte Ringstad Vartdal. 

“At this time, Statkraft will prioritise our financial capacity on near term profitable technologies, such as solar, wind and batteries in fewer markets. We have been successful in developing an attractive portfolio in several European markets. As we need to prioritise, parts of the portfolio will benefit from getting new owners. Offshore wind will play an important role in the power mix in Europe, but the pace of development of the industry has been slower than previously forecasted, and this has impacted the ability to drive down costs in the short term,” Vartdal added .