Norsk Hydro ASA, a Norwegian aluminium and renewable energy company, has announced plans to construct a NOK 1.2 billion (USD 115 million/EUR 103 million) pumped-storage power plant in Luster Municipality as part of its Hydro Energy initiative.
The project, named Illvatn, aims to enhance hydropower production by pumping water from the Fivlemyrane reservoir, situated at an elevation of 1,018 meters, to the Illvatn reservoir, which is 1,382 meters above sea level.
To mitigate water loss in the Fortun system during summer and boost production in winter, the Illvatn project will involve raising the reservoir capacity through a new drainage tunnel.
Kari Ekelund Thorud, Executive Vice President of Hydro Energy, emphasized that the project has been developed in close collaboration with local authorities and communities, aiming for “net-zero” loss of prioritized natural resources while increasing efficiency and production.
Hydro received a concession for the Illvatn pumped-storage power plant in April 2020 and has now submitted an application for a plan change. The Norwegian Water Resources and Energy Directorate's (NVE) response will determine whether the final investment decision (FID) can be made by the second quarter of 2025, with construction slated to commence later that year and completion expected by 2028/2029.
In addition to the Illvatn project, Norsk Hydro is advancing multiple hydropower initiatives to secure long-term energy supply for its aluminium production operations in Norway beyond 2030.
This includes a concession for the Oyane power plant in the same watercourse and a NOK 290 million project at Torolmen in the Ardal municipality, as well as a collaboration with Lyse to upgrade and expand existing facilities in Roldal-Suldal, with total costs estimated between NOK 7 billion and 8 billion.
