Norwegian state-owned utility Statkraft said on Wednesday it would cut its annual costs by around 15% or 2.9 billion crowns ($292 million) by 2027, citing increased global uncertainty, higher expenses and lower power prices.
The company already announced in May that it had stopped developing new green hydrogen projects due to higher costs and uncertain demand, after it scaled back its hydrogen ambition last year.
“Statkraft needs to adapt to the changing market and increased geopolitical uncertainty,” Statkraft CEO Birgitte Ringstad Vartdal said in a statement on Wednesday.
The specific measures, including any staff reductions, will be identified during the second half of 2025, the company said.
Statkraft said it would prioritise near term profitable technologies, including solar, wind and batteries in fewer markets, pointing to slow development of the offshore wind industry.
“Offshore wind will play an important role in the power mix in Europe, but the pace of development of the industry has been slower than previously forecasted, and this has impacted the ability to drive down costs in the short term,” Vartdal said.
The company said it would stop further activities in new projects, including Norway’s upcoming allocation round of Utsira Nord, and that it will stop its development activities in Portugal.
It added that it would assess its investment in solar, wind and batteries in Poland, but that it would proceed with the development of the North Irish Sea Array project. Statkraft will continue market activities in both Portugal and Poland, it said.
($1 = 9.9445 Norwegian crowns)
(Reporting by Louise Breusch Rasmussen)
