Thursday, 27 November 2025
Skanska has signed a contract with Hydro to build the Illvatn pumped-storage hydropower plant in the municipality of Luster, Vestland County, Norway. The contract value is NOK 950 million (about €77 million), roughly equal to SEK 900 million (about €74 million). The order will be recorded in Skanska’s Nordic orders for the fourth quarter of 2025.
The agreement covers construction of an underground power station and related tunnel and infrastructure works. The scope includes building a pressure tunnel of approximately 8 kilometers between the Fivlemyrane and Illvatn reservoirs, part of a larger tunnel network totalling about 9 kilometers. Additional work involves constructing a permanent access road, a tunnel to the transformer and station halls, and a surge system stretching 250 meters. Given that portions of the project area are currently inaccessible by road, helicopter transport will be required during certain phases.
The new Illvatn pumped-storage facility will leverage the elevation difference between the Fivlemyrane and Illvatn reservoirs, increasing Illvatn’s storage capacity by 90 million cubic metres. The plant is expected to enable more efficient use of water resources by pumping water uphill during summer months or periods of low electricity demand and price, and generate approximately 84 GWh of electricity annually.
Preparatory works are already underway. Construction is scheduled to be completed by August 2030.
Currency: At the time of writing: 1 NOK ≈ €0.081, 1 SEK ≈ €0.082
