In 2014, Skagerak sent an application to the Norwegian Water Resources and Energy Directorate (NVE) for a licence to develop a new power plant in Dalsfos. The new power plant is to be built inside the mountain on the opposite side of the river to the current power station building.
The old Dalsfos Power Plant is located by the Tokevannet lake at the top of the Kragerø watercourse, and is over a century old. The power plant is in daily operation, and one of the original turbines from 1906 is still intact. The facility is worn down and has low efficiency according to today’s standards. Conservation authorities have proposed listing the power plant.
The NVE granted a licence for Nye Dalsfos Power Plant in September 2017.