Norway’s Hydro Power Gets a $50 Million Upgrade

Skanska’s Tunnel Revamp Aims to Future-Proof a 40-Year-Old Energy Workhorse

In a move to bolster Norway’s hydroelectric backbone, construction giant Skanska has landed a NOK 476 million (~SEK 450 million) contract with state-owned Statkraft. The deal targets critical upgrades at the Saurland power plant in Suldal—a facility quietly generating over 1400 GWh annually since 1985. The project, set to break ground in June 2025, will reinforce a 10 km water tunnel and carve out a new 2 km access route, aiming to slash water loss and extend the plant’s operational lifespan.

“This isn’t just maintenance—it’s about future-proofing a system that powers half a million homes,” says a Statkraft spokesperson.

The Saurland plant draws water from the massive Blåsjø reservoir, a keystone in Norway’s renewable grid. Unlike flashier wind and solar projects, such hydro upgrades rarely make headlines. Yet they’re pivotal for Europe’s energy transition, especially as the Energy Global Spring 2025 issue highlights grid instability from negative electricity prices and uneven solar adoption. Skanska’s Nordic division will book the order in Q2 2025, with completion slated for June 2028—a tight three-year window given the complex geology.

Hydro’s Quiet Renaissance

While Scotland’s MachairWind project steals buzz with its business partnerships in Argyll and Bute, Norway’s tunnel-and-turbine approach underscores hydro’s enduring role. The Saurland upgrades mirror a broader trend: aging European hydro facilities getting stealthy tech injections. By minimizing water leakage and streamlining access, Statkraft expects at least 20 more years of peak output from the plant—a hedge against drier winters and erratic demand.

“Tunnel integrity is everything. A 1% loss here could mean lights out for a village downstream,” notes a Skanska engineer.

As cranes converge on Suldal next summer, the project serves as a reminder: sometimes, the most consequential energy stories unfold in the dark—literally—inside mountains.