Norsk Hydro has approved construction of the Illvatn pumped storage power plant in Luster Municipality, marking its largest hydropower investment in more than 20 years. Work is set to begin this mornth, with operations planned for 2030.
The plant will add 107GWh of annual renewable generation dedicated to Norsk Hydro’s aluminium production. The project includes an 8km tunnel linking the reservoirs at Fivlemyrane (1,018m asl) and Illvatn (1,382m asl). The total investment is NOK 2.5 bn (US$250m), with Norsk Hydro’s net cost reduced to NOK 1.2bn (US$120m) under Norway’s cash flow tax scheme for hydropower.
“Renewable energy has never been more important. We are now making the largest investment in our hydropower portfolio since the development of the New Tyin power plant in Årdal in 2004. The Illvatn pumped storage plant will contribute increased energy production, reservoir capacity, as well as installed power capacity from our facilities in Fortun. As we take this major step, our ambition is net-zero loss of prioritized nature. With this, we are setting a new standard for our hydropower development,” said Kari Ekelund Thørud, Executive Vice President of Hydro Energy.
The plant will pump water from Fivlemyrane to the higher Illvatn reservoir. The minimum regulated water level in Illvatn will be lowered to increase reservoir capacity. Norsk Hydro says this will reduce summer water loss and boost generation in the winter months, when power demand is highest.
The project also involves construction of a 13km power line from Fivlemyr to Sveinsøystølen. Norsk Hydro plans to use 48 aluminium power towers instead of traditional steel or composite structures.
Norsk Hydro emphasises the importance of new renewable power in supporting industrial activity in Norway. “We need to develop more power and grid infrastructure to secure jobs, new industry, and welfare. As a major industrial player, we want to contribute to building out this power. Increased and more flexible hydropower production is an important and integrated part of our efforts to ensure power at competitive prices for Hydro’s Norwegian aluminium plants,” said Thørud.
Norsk Hydro’s aluminium production in Norway currently has a carbon footprint roughly 75% below the global average, and the company aims to produce zero-carbon aluminium by 2050. The Illvatn project is intended to strengthen Hydro’s long-term renewable power base as it works toward that goal.
