Results first half-year of 2025: Statnett increases investments

– Statnett has invested NOK 4.7 billion so far this year. That is NOK 1.4 billion more compared to the first half of 2024. To meet society’s growing need for capacity in the power grid, significant investments will be required in the years to come, says Cathrine Lund Larsen, CFO and Executive Vice President at Statnett.

High ancillary service costs contributed to a negative underlying result for Statnett of NOK 1.3 billion in the first half of 2025.

– There have been major changes in the Nordic power system. Automated balancing was introduced in March and, together with flow-based market coupling, increases the capacity allocation. However, these changes have also contributed to higher costs for procurement of reserves. These costs in 2025 will be compensated through increased regulated allowed revenue in 2027, explains Cathrine Lund Larsen.

The level of future reserve costs remains uncertain but have declined over the summer. Statnett and the other Nordic transmission system operators are continuously working to further develop and adjust automated balancing to ensure that price signals and balancing are as accurate and efficient as possible.

– Statnett is working to optimize efficiency in the reserve market, but we expect costs to be at a high level going forward, says Lund Larsen.

Strong Need for Grid Investments

Over the next ten years, Statnett will more than double its investments compared to the previous decade. In the first half of 2025, the value of the ongoing grid development portfolio increased from around NOK 159 billion to NOK 188 billion. The number of ongoing projects rose from 214 to 235.

Statnett’s construction activity will increase significantly in the coming years to ensure a robust grid and power system across the country. Our power system is critical infrastructure and an important part of national security. Statnett’s investments will contribute to increased transmission capacity, enhanced security, and reduction of price differences.

– Increased activity and a strained global supplier market are driving up prices both for individual projects and for Statnett in general. That’s why we are working systematically to reduce costs across all our projects and operations, says Cathrine Lund Larsen.

Increasing Power Flow in the Existing Grid

In the first half of 2025, there have been large price differences between the north and south of the country. The reasons are differences in hydrological balance and limited transmission capacity in the grid, both in Norway and Sweden.

Statnett is therefore prioritizing measures to increase power flow between north and south, both by reinforcing the existing grid and by building new infrastructure. An important contribution to this effort is the Aurland-Sogndal line, which will be put in operation this autumn.

– We are implementing multiple measures to get more out of the existing grid, in addition to building new infrastructure. In the short term, we are upgrading existing lines for higher temperatures and implementing new technology to optimize available capacity. We are also increasing the utilization of selected transformers, says Lund Larsen.

Congestion revenue more than doubled

Congestion revenue was NOK 7.3 billion in the first half of 2025 compared to NOK 3.3 billion in the first half of 2024. The increase in congestion revenues contributed to a positive cash flow from operations and a positive recorded profit for the period (NOK 737 million) in the first half of the year, despite the increased ancillary service costs. Due to high congestion revenues, higher revenue of NOK 488 million has been reimbursed directly to the owners of the underlying grids in the first half of 2025.

Statnett's Financial Results

• Statnett’s financial performance is best reflected by the underlying result. The Regulatory Authority for Energy (RME) sets a cap on permitted revenue, and the underlying result is based on this. As operating expenses and ancillary cost are included in permitted revenue with a two-year time lag, the underlying results will also vary significantly from year to year. Ancillary service costs increased by NOK 2 billion in the first half of 2025 compared to the same period last year.
• The reported net profit was NOK 737 million in the first half of 2025, compared with a net loss in the first half of 2024. The increase in the reported net profit is primarily due to higher congestion revenues. The increase was partially offset by increased ancillary cost. Revenue from tariffs also increased.
• The difference between the reported financial result and the underlying result, referred to as higher or lower revenue, is made up by future grid tariff adjustments. This ensures that, over time, Statnett’s accumulated reported revenues align with the regulated permitted revenue.
• On 28 August 2025, the Board of Directors of Statnett approved the Group's Interim Report for the first half of 2025. The Interim Report is enclosed.