The owners of Sauland kraftverk AS have decided to postpone a decision to develop the facility. Low power prices, increased taxation and lower production basis than expected are the most important reasons behind this postponement.
Press release 22 June 2016
'After a thorough evaluation of costs and licencing terms for the building of Sauland Power Plant, we have concluded that a decision to commence development must be postponed,' says chair of the board of Sauland kraftverk AS Finn Werner Bekken.
Combination of reasons
He emphasises that it is not a single factor but many different ones that are behind this decision to postpone construction.
'Three factors in particular make it difficult to bring the power plant to fruition in the short term. These are low power prices, increased taxation and a lower production basis than what we expected when we submitted the licence application,' says Bekken.
When the Ministry of Petroleum and Energy granted a licence for Sauland Power Plant in February this year, the licence was for a production of approx. 28 GWh lower than stipulated in the licence application. The updated inflow and production calculations estimate an annual production of approx. 205 GWh.
'The licence remains in place. It is primarily higher power prices in combination with changes in the national framework conditions that are important in order to bring the power plant to fruition,’ concludes Bekken.
Development likely within 10 years
The owners are still confident that Sauland Power Plant will be a reality in the future.
'This postponement does not mean there will be no development. The licence is given for five years, with the possibility of extension for a further five years. We still believe it is possible to make the power plant a reality within this time frame,’ says chair of the board Bekken.
Power for 10,000 households
Sauland Power Plant is a large, important project to its owners and in order to reach national renewable energy targets. It is estimated that the power plant will have an annual production of 205 GWh, equivalent to the consumption of about 10,000 households.
The owner company Sauland kraftverk AS is owned by Skagerak Kraft (67%), Notodden Energi (16.2%), Hjartdal municipality (14.35%) and local landowners (2.45%).