Hydro plans to build a new pumped storage power plant in Luster Municipality, Norway. With construction starting in 2025 and operations beginning in 2028/2029, the total investment for the project is estimated at approx. NOK 1.2 billion.
Illvatn is part of a larger hydropower initiative in Hydro Energy. Kristen Johannes Rockland Aarethun (left), Head of Technical Support & Projects, Operation & Maintenance Support in Sogn, and Eve Cathrin Walseth, Project Manager, representing the project team.
The planned power plant will generate 84 GWh of renewable power annually, primarily used for industrial production.
'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 prioritized nature,' says Kari Ekelund Thørud, Executive Vice President of Hydro Energy.
The power plant will pump water from the Fivlemyrane reservoir, located 1018 meters above sea level, to the Illvatn reservoir, located 1382 meters above sea level. Simultaneously, the reservoir capacity in Illvatn will be increased by constructing a new drainage tunnel that will lower the lowest regulated water level. This approach will reduce water loss in the Fortun system during summer months and boost production during periods of high power demand during winter season.
In April 2020, the Norwegian Ministry of Energy granted Hydro concession to develop the Illvatn pumped storage power plant. An application for a plan change is currently being processed by the Norwegian Water Resources and Energy Directorate (NVE). The project’s implementation depends on a positive response to the application, with the final investment decision expected by the second quarter of 2025.
Power for industrial development
Illvatn will be part of Hydro Energy’s power portfolio, supplying renewable energy to industrial production in Norway.
Norway's combination of renewable energy access and advanced technology has positioned its industry as a global leader. To further reduce emissions in existing industries and foster the development of new ones, the country still requires increased renewable power at competitive prices.
Hydro currently produces aluminium in Norway with a carbon footprint that is about 75 percent lower than the global average. The goal is to achieve zero-carbon aluminium by 2050. Hydro’s Norwegian aluminium plants are mainly covered by long-term power contracts until 2030, but it is urgent to secure new contracts beyond this period.
'Hydro and the wider industry need more hydropower, wind, and solar power to successfully transition to a greener future and make further investments in Norway. As a major industrial player, we are committed to contributing to the development of these renewable energy sources,' says Thørud.
Part of a larger hydropower initiative
Hydro is working to mature hydropower projects at several locations. In addition to the Illvatn project, Hydro was also granted a concession to build the Øyane power plant in the same watercourse. While the profitability of the Øyane project is more challenging, Hydro is currently evaluating its viability.
Another project under development in Norway is a new power plant at Torolmen, in the Årdal municipality, with an estimated annual production of around 30 GWh. The total investment for this project could reach NOK 290 million, with potential construction starting as early as 2027.In Røldal-Suldal, Hydro and Lyse are collaborating to upgrade and expand existing facilities. This project could increase annual power production by 800 GWh and capacity by 650 MW. The total investment is estimated to be up to NOK 7-8 billion, with a possible construction start in 2027. Hydro holds a 25.6 percent ownership share in the Røldal-Suldal facilities.
