Sian Crampsie

Low power and electricity certificate prices in the Nordic region have made two wind power projects unprofitable, says Statkraft. The Norwegian firm has decided not to invest in the Fosen and Snillfjord projects in central Norway, which would have added 1000 MW to the grid.

"Statkraft finds it regrettable that the projects cannot be realized," said Statkraft President and CEO Christian Rynning-Tønnesen. "The authorities have contributed by facilitating wind power development, for example through improving the depreciation rules. Unfortunately, the market development is such that it is still not commercially responsible to invest in these projects."

Power prices in the Nordic region are relatively low because of a growing power surplus and continued moderate demand for electricity, said the firm. It added that it would continue to make "substantial" investments in hydropower and district heating in Norway.

The Fosen and Snillfjord projects are owned by Statkraft, Agder Energi, TrønderEnergi and Nord-Trøndelag Elektrisitetsverk (NTE) and would have required an investment of NOK11 billion.