Norwegian utility Statkraft is to invest around €500 million in the construction of a new hydropower plant in Turkey.

The Cetin plant will have a capacity of 517 MW and will be Statkraft’s largest hydropower facility outside Norway. Turkish contractors Yuksel and Ilci, together with Austria’s Andritz Hydro, will build the plant.

“Cetin will considerably increase Statkraft’s capacity in Turkey, in line with our strategy to become a significant generator of flexible hydropower in Turkey,” EVP International hydropower in Statkraft, Øistein Andresen. “Cetin is a sustainable project, providing Turkey and Europe with more pure energy while creating jobs and local development.”

Cetin will be built on the Botan River, a tributary of the Tigris River in Siirt province, southeast Turkey. It will consist of two dams and two power plants.

Cetin Main will have an installed capacity of 401 MW and a significant reservoir, while further downstream, Cetin Lower will have a capacity of 116 MW.

The project is Statkraft’s third in Turkey, which is the fastest growing power market in Europe. The company’s first hydropower plant in Turkey started commercial operation in June 2010, and it expects its second to start operations in 2013.