Hydropower

What is hydropower – and how does hydropower work?

Simply put, hydropower turns the energy from running water into power. This magic happens inside hydropower plants that are often connected to large water reservoirs. When water is dammed up in a reservoir, the water and energy in the water can be stored until we need it (there’s that flexibility again). 

Hydropower plants without reservoirs are often called run-of-river power plants. In these cases, production is controlled by how much water flows past at any given time.  

Sometimes several power plants are located one after the other so that the energy in the water is utilised several times before the water flows into the sea. 
This video below shows you how hydropower works: 

Simply explained, hydropower works like this: 

1. Rain and melted snow accumulate in water reservoirs, often high in the mountains.
2. The water is guided from the reservoir and down into the power plant. On the way there, the water gains high speed. 
3. Inside the power plant, the water hits a turbine that starts to rotate. The turbine is connected to a shaft and a generator. 
4. When the turbine and shaft rotate, mechanical energy is created.   
   The mechanical energy is passed on to a generator where it is converted into electricity.
5. From the generator, the electricity is sent out to the power grid to you and me.
6. The water continues its journey out to sea, where the cycle is repeated and the water can be used again and again to make electricity.  

Statkraft's production of hydropower 

Statkraft is Europe's largest hydropower producer. In 2024, Statkraft produced a total of 55 TWh of hydropower around the world.   

Statkraft is owned by the Norwegian state. That means our power production, including wind power, benefits both Norwegian society as well as the countries and local communities where we operate. Power production contributes with positive ripple effects such as local businesses and jobs, upskilling and tax revenues.

Where is Statkraft hydropower plant located and where is development planned?  

Statkraft has hydropower plants in the Nordic region, Europe, South America and Asia. You can read more about our hydropower plants around the world by exploring this map. 

Statkraft is planning major upgrades of our Norwegian hydropower assets. This work is a significant investment in renewable energy and infrastructure that’s necessary to meet the energy needs not just of today, but of the future. By upgrading and expanding the hydropower plants we already have, we also avoid major encroachments on nature.  

Hydropower in the local community 

Most forms of energy production have a direct impact on the communities where they’re located. That makes it vitally important for us to work closely and systematically with those communities to find the right solutions and create positive ripple effects for people and the places where they live. Here are some of the ways we work to do this: 

• Consult and collaborate with governments, communities, organisations, and other relevant parties throughout the life cycle of each project.
• Use local development programs that reduce negative impacts and map out measures to give back to local communities.
• Use local suppliers that strengthen employment in local communities.
• Investigate and manage our impact to ensure that we are always in line with international frameworks, such as the UN Guiding Principles on Business and Human Rights, and IFC standards. 

Here you can read more about how we work with local communities

How does hydropower affect the price of electricity?  

In the power market, prices are set based on supply and demand. That means that weather conditions that result in dry years, or little water in the reservoirs, or less wind power can affect energy production and, as a result, impact electricity prices.  

What’s special about hydropower is that it is largely controllable. That means it can be stored for periods of high energy demand and low access to other energy. This is important, because it adds flexibility to the power system, which contributes to more even electricity prices over time, and contributes to increased energy security in Europe. 

Hydropower, sustainability and the environment  

To slow down climate change, we need more renewable energy to replace fossil fuels which are the primary drivers of global warming. Hydropower is one of the most efficient renewable energy sources we have. In addition, in a time of increasingly extreme weather and heavy rainfall (especially in certain locations), the water reservoirs help to reduce the risk of flooding. 
At the same time, the truth is that all power production has an impact on the environment. In the case of hydropower, some of the environmental challenges are: 

• The construction of hydropower plants result in natural interventions as a result of the construction of dams and the raising and lowering of water levels 
• Hydropower affects the natural landscape by, for example, regulating waterfalls and laying pipes 
• In rivers impacted by hydropower projects, species such as salmon, trout and freshwater mussels are vulnerable to migration obstacles and changes in water temperature, speed and volume. 

Because of the encroachment on nature, some have questioned how environmentally friendly hydropower really is. At Statkraft, we are constantly working on both research activities and careful planning to predict, understand and minimise the environmental impacts of our activities, for example by improving fish habitats and spawning areas and assistance measures during the fish's migration in the rivers. 

Here you can read more and see examples of how we work to reduce our environmental impact

Innovation – how to improve hydropower?

The origins of hydropower are grounded in some bold engineering feats, in Statkraft’s case, dating back to 1895. Since then, innovation has characterised us and is still one of the values that guide our work.  Through our extensive experience, commitment to research and development, and both ability and willingness to enter new business opportunities, we will continue to lead the way in the development of hydropower.  

As a significant player in the power industry, we’re really proud to be a contributor to research centres and industry networks that continue to develop the technology for future generations.  

Here you can read more about innovation in Statkraft 

Statkraft is planning major upgrades of Norwegian hydropower. These are milestone investments in renewable energy and infrastructure and we’re making them to meet the energy needs of today and tomorrow. By upgrading and expanding our existing hydropower plants, we also avoid major encroachments in nature.  

Read about these projects on our Norwegian site here