The owners of Sauland Power Plant have decided to postpone the development of the power plant, but are ready to initiate the project quickly if profitability improves.
A letter from Sauland Power Plant dated 22 February 2017 has been sent to waterfall owners and landowners affiliated to the project
On 12 February 2016, the King in Council granted Sauland kraftverk AS a licence to develop Sauland Power Plant. In addition to the development of Hjartdøla and Skogsåa, permission was granted to develop Grovaråa, Vesleåa, Kvitåa and Uppstigåa, all tributaries of Skogsåa. The application to develop Skorva and Vesleåa/Kjempa, both tributaries of Hjartdøla, was denied due among other things to important habitat types. The requirements set for Hjartdøla include a much higher requirement for minimum flow release than that applied for. The minimum flow requirement was set to 3 m3/s in the summer and 2 m3/s in the wintertime, out of consideration for the habitats of freshwater pearl mussels.
Stringent environmental terms imply that power production will be significantly lower than the figures forming the basis of the licence application. The preliminary project for the development is largely completed. Calculations show that the solution for which the licence is granted will give an annual production of approx. 205 GWh. This is equivalent to the power consumption of over 10,000 households. The costs for the development are estimated to be approx. NOK 1,140 million More information about the licence decision and Sauland Power Plant is available at www.saulandkraftverk.no.
The price prognoses in the electrical energy and green electricity certificate markets have been weakened in recent years, particularly in the short and medium term. In the decade during which the development project has been worked on, significant changes have occurred to the general terms for developing hydroelectric power plants. Virtually all key preconditions for realising this type of project have significantly changed: the cost level in the construction and supplier market, taxes, power prices and environmental requirements.
The owners of Sauland kraftverk AS have decided to postpone the development. However, the prospects for making Sauland Power Plant a reality are still considered good in the longer term. The licence for Sauland Power Plant has been granted on the condition that construction is begun within five years. This deadline can be extended by up to five years.
Detailed planning of the power plant is largely completed and construction could therefore commence relatively quickly. As soon as the owners of Sauland kraftverk AS see a basis for making the project a reality, we will contact all the relevant landowners with regard to achieving reasonable agreements for purchase of land and fall rights that are not already at Sauland kraftverk AS's disposal.
We would like to thank all those who have provided useful input relating to both the licence application and the detailed planning of Sauland Power Plant. We look forward to our continued partnership.