Hydro and Statkraft Sign Long-Term Power Purchase Agreement for 8.8 TWh

Hydro and Statkraft have entered into a long-term power purchase agreement (PPA) securing approximately 8.8 TWh of electricity over the contract period. The power will be delivered in Norway’s NO5 electricity price area.

The agreement is the third long-term PPA signed between Statkraft and Hydro in 2026. In April, the companies signed two additional long-term agreements covering total deliveries of 0.9 TWh per year in 2029 and 2030, followed by 1.3 TWh per year from 2031 to 2038.

According to Statkraft, the agreements will provide stable and competitive electricity supplies to Hydro’s aluminium plants in Norway over the coming decade. The contracts also strengthen Statkraft’s position as a major power supplier to Norwegian industry.

Hydro said predictable, competitively priced electricity is important for maintaining its aluminium production in Norway and supporting the company’s supply of low-carbon aluminium and related solutions to customers across Europe.

Long-term power contracts are designed to reduce electricity price and revenue risks for both industrial customers and power suppliers. They provide greater price predictability and stable revenues while supporting industrial competitiveness, employment and economic value creation.

Hydro is also pursuing multiple sourcing options to meet its future electricity requirements. Alongside long-term agreements with suppliers such as Statkraft, the company is developing new renewable energy projects and upgrading assets within its existing renewable energy portfolio.