Statkraft Approves Blåfjell Pump Project to Increase Power Generation from Norway’s Largest Hydropower Reservoir

Statkraft Approves Blåfjell Pump Project to Increase Power Generation from Norway’s Largest Hydropower Reservoir

(IN BRIEF) Statkraft has approved construction of the Blåfjell Pump, a new hydropower project that will transfer water from three smaller lakes in Hjelmeland municipality into Blåsjø, Norway’s largest hydropower reservoir. By lifting the water around 60 metres into Blåsjø, the project will make more efficient use of the Ulla-Førre hydropower system and increase electricity production by 54 GWh, equivalent to the annual electricity use of about 2,700 Norwegian households. The project is part of Statkraft’s broader plan to invest NOK 70 billion in Norwegian hydropower over the next ten years. Four construction contracts worth a total of NOK 250 million have been awarded to local and regional suppliers from Karmøy, Suldal, Voss and Grenland, while the overall project cost is estimated at around NOK 300 million. Construction begins this week, with commissioning planned for December 2027 and related dam improvements expected to be completed in 2028.

(PRESS RELEASE) DÜSSELDORF, 16-Jun-2026 — /EuropaWire/ — Statkraft has decided to move forward with construction of the Blåfjell Pump, a hydropower project that will transfer more water directly into Blåsjø, Norway’s largest hydropower reservoir. The investment is expected to increase electricity generation from the Ulla-Førre power plants by 54 GWh.

The project will also create significant activity for Norwegian suppliers. Four local and regional contractors from Karmøy, Suldal, Voss and Grenland have been awarded construction contracts with a combined value of NOK 250 million. Work on the new pumping facility is scheduled to begin this week.

Blåsjø is often described as Norway’s largest hydropower battery because of its ability to store water over several years and help balance variations between dry and wet periods. The reservoir extends across Ryfylke and Setesdal and is the country’s largest reservoir measured by stored energy.

In Hjelmeland municipality, west of Blåsjø, three smaller lakes currently feed water down to Stølsdal power plant, located at a lower level in the Ulla-Førre hydropower system. Because of flood losses and limitations in the existing watercourse, Statkraft has determined that the water can be used more efficiently by pumping it around 60 metres upward into the Blåsjø reservoir.

By directing more water into Blåsjø, the project will increase electricity production in Norway’s NO2 price area by 54 GWh. This amount is equivalent to the annual electricity consumption of approximately 2,700 Norwegian households.

Pål Otto Eide, Executive Vice President for Development at Statkraft, said the company has worked for many years on planning and adjusting the project before finding a profitable way to carry it out. He said increasing the amount of water stored in Blåsjø is highly valuable for society because the reservoir can hold water for several years and support increased generation from existing hydropower facilities. Eide added that the project allows significantly more energy to be produced from an already developed system, with limited additional impact on nature.

The Blåfjell Pump forms part of Statkraft’s wider Norwegian hydropower investment programme. The company recently announced plans to invest NOK 70 billion in Norwegian hydropower over the next decade.

Eide said the Blåfjell Pump is one of several projects Statkraft is carrying out to help build and strengthen Norway. He described the company’s planned investments over the coming years as one of the largest industrial boosts in the country.

The Blåfjell Pump project includes a transfer tunnel, a pumping station inside the mountain and several smaller transfer structures. The total cost of the work is estimated at around NOK 300 million. Statkraft aims to commission the pump by December 2027.

Alongside construction of the pumping facility, Statkraft will also carry out improvements required by the Norwegian Water Resources and Energy Directorate on four dams at the western end of Blåsjø. The plan is to complete all related work during 2028.

The project is also expected to generate local and regional economic benefits. Statkraft has chosen a contract strategy designed to allow national, regional and local contractors to participate. The construction work has therefore been divided into four separate contracts.

Tor Oxhovd Svalesen, who has led the development of the project, said Statkraft wanted to create a competitive process that allowed contractors to focus on their strongest capabilities while also enabling participation from suppliers that are important to the company’s day-to-day operations. He noted that construction market activity has been lower, while competition for the contracts has been strong.

Through the Blåfjell Pump project, Statkraft aims to make better use of existing hydropower infrastructure, increase renewable electricity generation and support Norway’s long-term energy resilience.

Media Contacts:

Nina Nerbøvik Holand
Media spokesperson
+47 482 217 75
ninh@statkraft.com

SOURCE: Statkraft