Norwegian utility Statkraft has announced plans to spend more than NOK1 billion on upgrading its hydropower facilities in a bid to improve security of supply and boost renewable energy output.

The company says that it will build two new power plants in western Norway to replace older facilities, and will also modernise the Nedre Røssåga hydropower plant in northern Norway.

“These investments will result in more renewable energy, increased security of supply and significant local, regional and national value creation,” said Tron Engebrethsen, Senior Vice President at Statkraft.

Statkraft will spend around NOK700 million building the Eiriksdal and Makkoren power plants as well as carrying out a number of environmental improvements in the area. These include increased water flow in the river below the power plants, and replacing older power cables with buried cables.

The new power plants will be constructed underground and will produce around 330 GWh/year.

The upgrade of Nedre Røssåga in northern Norway is the first stage of a major modernisation of the Røssåga facilities. Three of the units will be upgraded first, followed by modernisation or replacement of the support and control systems.

This project will cost an estimated NOK 400 million, and Statkraft is also considering an upgrade of the three other units in the power station, or building a new parallel power station to replace them.