Icelandic companies to build 40 power plants in Norway Skip to content

Icelandic companies to build 40 power plants in Norway

The Iceland State Electricity (RARIK) and the investment bank Landsbanki plan to construct 40 smaller hydroelectric power plants in Norway in cooperation with the local energy company Blåfall Energi.

The operations will stretch over a period of five years and begin later this year, Fréttabladid reports.

“The power plants will be small and produce between one and seven megawatts of electricity,” said the managing director of RARIK’s development department, Steinar Fridgeirsson. “The plants will harness high waterfalls, are very eco-friendly and deliver considerable profits.”

The total cost of the project is estimated at ISK 12 billion (USD 189 million, EUR 142 million).

The power plants will be built rise near Bergen, in western Norway, and also in the northern part of the country. “The waterfalls are high in that area and will not require large dams,” Fridgeirsson said.

Blåfall Energi plans to sell the energy on the Nordpool Energy Market in Oslo.

The Norwegian government has agreed to pay producers of eco-friendly energy an additional sum to the energy price, which opens business opportunities, according to Gunnar Jóhannesson at the Landsbanki company consultancy.

Landsbanki holds a 15 percent share in Blåfall Energy and RARIK a ten percent share. The largest shareholder is the Finnish company Kymppivoima, which holds 50 percent of shares.

The Norwegian company Green Stream Network will also participate in the project as well as Dutch investors.

RARIK will manage the operations in Norway and use its expertise in the field of hydroelectric energy harnessing, which has been growing in Iceland in recent years.

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