Norway’s largest power company Statkraft has reported a positive earnings growth in the fourth quarter results with €502 million in underlying EBIT which is an increase of over €157 million from the corresponding period in 2017.
The rising power prices in the Nordic region where the firm operates, is being cited as significant drivers of the positive growth. The average energy price in the Nordic region increased by 56% to €47.7/MWh from the last three months of 2017. Total power generation reduced by 1.2 TWh to 16.1 TWh in the last quarter. The power generation fell by 1% from the previous year to 61.7 TWh in 2018. The average energy prices increased by 49% in the Nord Pool to €44/MWh.
The company said that the quarter’s good performance was largely credited to the cost reduction plan called Performance Improvement Program undertaken by the company. The plan expected to save NOK800m this year as it saved NOK625m last year. The company signed several agreements to buy and sell energy which included the two 8-year contracts signed by Statkraft with Norske Skog to deliver 14 TWh power.
Statkraft has also signed agreements with Germany’s Mercedes-Benz group. The German Automaker has pledged to power all of powertrain and German vehicle plants with renewable energy by 2022. As part of the agreement Statkraft will sell the energy produced from its community wind farms to Mercedes-Benz. The company believes that the agreement with Statkraft is the first step towards realizing its 2022 carbon free goal. 46 MW energy produced form community owned wind farms, managed by Statkraft, will be used to power Mercedes’ plant in Bremen.
Statkraft, which is basically a hydropower company which later ventured into renewable space, will turn its hydropower station in Albania to a floating photovoltaic (floatovoltaic) 2 MW solar plant. In Spain, Statkraft is also part of 15-year long power purchase agreement with the 175 MW Don Rodrigo plant. The project is the first unsubsidized utility-scale photovoltaic project in Europe.
Statkraft which is Norway’s state-owned hydropower energy company unveiled its plans to invest in $1.23 billion in solar and wind projects between 2019 and 2025. The goal for solar capacity has been set at 2 GW and for onshore wind at 6 GW. The company first entered into solar energy with the construction a solar power plant in Italy in 2010. Since then the company has grown its presence in Spain, Netherlands, United Kingdom and India among others.