Norway’s Saurdal Hydro Plant Gets a $50 Million Upgrade for the Climate Era
Skanska lands major contract to future-proof one of Scandinavia’s workhorse energy facilities
In a move to shore up Norway’s renewable energy backbone, construction giant Skanska has clinched a NOK 476 million (~SEK 450 million) deal with utility Statkraft to modernize the Saurdal hydroelectric plant. The contract, slated for 2Q25 Nordic order books, targets critical infrastructure at the 40-year-old facility in Rogaland County. The upgrades—scheduled to break ground in June 2025—will extend the plant’s operational lifespan while tackling two Achilles’ heels of aging hydro systems: tunnel integrity and water efficiency.
“This isn’t just maintenance—it’s about preparing Saurdal for another half-century of climate volatility,” says a Statkraft spokesperson familiar with the project.
The centerpiece of the overhaul involves reinforcing a 10 km water tunnel that channels meltwater from the massive Blåsjø reservoir. Engineers will also carve out a new 2 km access tunnel to streamline maintenance. Since its 1985 debut, Saurdal has been a quiet powerhouse, generating over 1400 GWh annually—enough to power roughly 80,000 Norwegian homes. But decades of pressure fluctuations and freeze-thaw cycles have taken a toll on the underground network.
Hydropower’s hidden leaks
While hydroelectricity accounts for 90% of Norway’s power, aging plants like Saurdal lose significant energy potential through seepage and structural stress. The upgrades aim to plug these gaps, reducing water loss by an estimated 3-5% annually. For context: in 2023, Norway’s total hydropower output hit 134 TWh—meaning even fractional efficiency gains could preserve gigawatt-hours of clean energy.
“Tunnel reinforcement is like giving arteries a stent. You prevent catastrophic failure while optimizing flow,” explains a Skanska project lead.
The three-year timeline (June 2025–June 2028) reflects the challenges of working in confined subterranean spaces. Crews will use robotic boring machines and sensor-guided injection systems to strengthen tunnel walls without disrupting operations. When complete, the upgrades will position Saurdal to handle both increased rainfall from climate change and the grid flexibility demands of Norway’s booming electric vehicle fleet.
As Europe races to future-proof its renewable infrastructure, the Saurdal project underscores hydropower’s enduring role—provided its steel-and-concrete bones get timely checkups. For Skanska, it’s a high-stakes demonstration that the green transition isn’t just about building anew, but wisely maintaining what already works.
