Veidekke: To build Offerdal Hydropower Project
Sognekraft has today entered into an agreement with Veidekke to construct the Offerdal hydropower plant in Årdal. The target price contract is valued at approximately NOK 525 million excluding VAT.
"Veidekke has a proud history in the construction of hydropower plants. These projects are often highly complex and long-term, and in the case of Offerdal, the process began with agreements with landowners back in the late 1990s. Sognekraft entered the project a few years later and acquired the majority of it from Veidekke. We are now very pleased that the project is finally being realised and that we can continue our strong collaboration with Sognekraft following the construction of the Feios hydropower plant, which has just been completed," says Neal Nordahl, Director at Veidekke Infrastructure.
The Offerdal hydropower plant will generate approximately 100 GWh of new renewable energy annually, equivalent to the electricity consumption of around 6,000 households. The plant will feature a daily storage reservoir (tunnel reservoir) inside the mountain, based on the same principle used at the Feios hydropower plant. This innovative and flexible solution, developed jointly by Veidekke and Sognekraft, enables water storage and power generation when demand is at its highest.
"We are very pleased that, together with Veidekke, we can now initiate this development. At a time when the demand for new, flexible hydropower is increasing rapidly, this project will make an important contribution to the power balance while also creating value both locally and regionally," says Terje Bakke Nævdal, CEO of Sognekraft.
The Offerdal development will comprise two power plants within the same project: one underground facility housing two turbines, and one surface installation. Both plants will have a head of approximately 400 metres. The upper reservoir will have a capacity of 15,000 cubic metres and the lower reservoir 61,000 cubic metres, while the underground tunnel system will be nearly 6.5 kilometres in length.
Construction works will commence after Easter, with planned start of power generation towards the end of 2028. Read more about the project here (https://www.sognekraft.no/fleiresaker/offerdalkraftverk-pressemelding).
The contract will be included in Veidekke's order backlog for the first quarter of 2026.
For further information, please contact:
Director Neal Nordahl, Veidekke Anlegg, tel. +47 90 92 44 64, neal.nordahl@veidekke.no
Communications Manager Helge Dieset, Veidekke, tel. +47 90 55 33 22, helge.dieset@veidekke.no
Veidekke's press photos (https://veidekke.fotoware.cloud/fotoweb/archives/5028 -Pressebilder-Veidekke/) Subscribe to notices from Veidekke (http://veidekke.com/no/borsmeldinger/abonner -pa-meldinger/) Veidekke (http://www.veidekke.com/) is one of Scandinavia's largest contractors. In addition to undertaking all types of building and civil engineering assignments, the group also maintains roads and produces asphalt and aggregates. Veidekke emphasises stakeholder involvement and local experience. Its annual turnover is approximately NOK 43 billion, and half of its 8,000 employees own shares in the company. Veidekke is listed on the Oslo Stock Exchange and has posted a profit every year since its inception in 1936.