A small revolution is happening in Øksenelvane in Norway's Nordfjord region. Workers are building a new hydroelectric power station right beside the old one.
The new plant will only produce slightly more electricity annually than its predecessor. But that is not the main goal. The key objective is generating massive power quickly during peak demand.
Knut Arild Flatjord, chief of Sogn og Fjordane energi (SFE), explained the strategy. "When demand is highest and prices peak, this will deliver substantial power," he said in a statement.
This marks SFE's largest-ever investment project. The energy company is spending 1.2 billion Norwegian kroner on the development.
Norway's power landscape is changing dramatically. More wind turbines and solar panels mean weather increasingly controls electricity production. On calm, cloudy days, power generation drops significantly.
What happens when everyone turns their heating to maximum during such periods? The solution involves releasing more water through hydroelectric plants exactly when needed.
The new Øksenelvane station will sit 500 meters inside a mountain. It represents a shift from reliable Toyota-like performance to Ferrari-level power capacity.
Currently, the old plant's two 1950s turbines can power approximately 15,000 homes at full capacity. The upgraded facility will instantly supply electricity to about 60,000 households.
Olin Johanne Henden, SFE's board chair, highlighted the strategic advantage. "Wind and solar power are excellent. But the genius here is producing electricity exactly when we need it most," she noted.
The plant cannot operate at maximum capacity continuously due to limited water reserves. SFE will save water for high-demand periods when the facility can generate maximum revenue.
This power upgrade could benefit consumers' electricity bills. Prices spike during shortages, like when wind turbines stand still while consumption soars. High-capacity plants releasing substantial power simultaneously can increase supply and potentially reduce price peaks.
However, researchers question whether this single project will significantly impact prices. Ellen Krohn Aasgård, a researcher at Sintef, expressed skepticism. "I don't believe this plant alone will influence prices," she stated, noting the facility isn't large enough to make that much difference.
Substantial price effects would require multiple power plants undergoing similar upgrades. Norway's Water Resources and Energy Directorate (NVE) confirms this trend is accelerating.
"We see rapidly growing interest in this approach," said NVE section director Magnus Buvik. He noted that adjustable high-capacity power plants can now earn more money than before.
A recent report suggests existing Norwegian hydroelectric plants could be upgraded with nearly 5 GW of additional capacity by 2050. The Øksenelvane project would represent about 1.5% of this total upgrade.
The financial incentives are clear. With electricity prices at 70 øre per kWh, the old plant could earn maximum 19,600 kroner hourly. The new facility could generate 77,000 kroner per hour during peak pricing.
SFE can therefore concentrate production during the most profitable hours. Although the new plant will produce only about 12% more electricity annually, revenue growth will likely exceed 12%.
This strategic approach reflects how energy companies are adapting to market realities rather than simply increasing total production.