Amid mounting pressure from falling power prices and geopolitical volatility, Norwegian utility Statkraft has unveiled a strategy to reduce its annual operating expenses by 15%—equivalent to approximately NOK 2.9 billion (USD 290 million)—by 2027.
The restructuring plan, announced on June 19, represents one of the most sweeping strategic pivots in the company’s recent history and includes a formal withdrawal from new green hydrogen and offshore wind projects.
The cost-cutting drive will involve layoffs, portfolio divestments, and a realignment toward core technologies that generate short-term returns. According to CEO Birgitte Ringstad Vartdal, the company’s sharpened strategy is designed to preserve long-term value in a market characterized by increasing financial risk and uncertain policy environments.
In a notable retreat, Statkraft confirmed it will discontinue the development of new green hydrogen initiatives, a sector it had previously viewed as integral to long-term decarbonization. This move follows a broader European trend, where green hydrogen projects have faced challenges around scale, cost, and uncertain offtake agreements. While the company will maintain existing hydrogen projects in operation, no further investment will be directed to pipeline expansion.
Similarly, Statkraft will exit the offshore wind space, citing prolonged permitting timelines, inflationary pressures on turbine and construction costs, and slow project realization—particularly in Europe. This includes a decision not to participate in the upcoming Utsira Nord auction in Norway, which had been viewed as a strategic milestone for domestic offshore wind development.
The company’s revised focus centers on flexible hydropower in the Nordics, a segment Statkraft regards as its strongest competitive advantage. In tandem, it will continue pursuing onshore wind and solar projects in select European and South American markets, alongside battery storage and grid services.
Between now and 2027, Statkraft plans to allocate between NOK 16–20 billion in capital expenditure toward upgrading hydropower infrastructure, developing wind assets in Norway and Sweden, and maintaining its existing fleet.
In line with the new strategy, Statkraft will scale back operations in certain regions:
- Portugal will see an exit from development activities, though operations will continue.
- In Poland, Statkraft will review its current portfolio in solar, wind, and batteries.
- Development activity in Croatia, the Netherlands, and India will also be wound down.
- District heating and biofuels in the Nordics will undergo divestment or restructuring.
The company’s move to exit Colombia has already materialized, with national oil company Ecopetrol acquiring Statkraft’s Enerfín Colombia portfolio in May 2025.
While the strategic pivot includes market exits, it also aims to consolidate and intensify operations in regions with proven commercial viability. The company remains committed to growing its renewables business in Norway, Sweden, Germany, the UK, Ireland, and selected Latin American countries.
Statkraft will reveal specific restructuring measures, including workforce adjustments, in the second half of 2025. The firm is expected to prioritize regions with high grid capacity and favorable permitting environments, a tacit acknowledgment of the bottlenecks facing renewable deployment across parts of Europe.
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