Å Energi and Bulk Infrastructure (Bulk) have entered into a long-term power purchase agreement (PPA) in connection with the construction of the Øygard hydropower plant in Åseral, Norway.
“We are facing significant growth in demand for renewable energy. Close collaboration between power producers and industry is therefore essential. The agreement with Bulk increases predictability and strengthens the profitability of a major and important project such as the Øygard hydropower plant,” says Steffen Syvertsen, CEO of Å Energi.
Å Energi recently approved the investment decision to build the Øygard hydropower plant, with construction scheduled to commence later this year.
In connection with the investment decision, Å Energi entered into a long-term PPA with Bulk. The agreement links an estimated annual production of 80 GWh from the Øygard plant to operations at Bulk’s N01 Data Center Campus in Vennesla. This is facilitated through guarantees of origin, certifying that an equivalent amount of energy is produced from the Øygard hydropower plant. The agreement ensures long-term price predictability and has a duration of 10 years from the plant’s expected commissioning in 2029.
The PPA is among the first in Norway where a data center company and a power producer have entered into a power purchase agreement prior to final investment decision.
“This is an important strategic agreement for us. Bulk is a long-term industrial company committed to contributing to the development of the Norwegian energy system. Through this agreement, we take responsibility for securing more of the power required for our operations and for the region,” says Jon Gravråk, CEO of Bulk Infrastructure.
Ole Erik Almlid, CEO of Confederation of Norwegian Enterprise (NHO), says the agreement is good news for Norway.
“We need more power and grid capacity, both for existing and new industries. More municipalities should approve new developments, and the state must grant more licenses. Long-term power agreements like this, between developers and industry, provide predictability for both parties and help unlock new power generation. That is something we strongly support,” says Almlid.
Collaboration is critical in the future energy system
The power system is undergoing significant transformation. Towards 2050, electricity demand is expected to increase substantially, driven primarily by electrification and new industrial development. The need for more renewable power and a resilient energy system makes collaboration between power producers and industry increasingly important.
“Data centers are expected to account for a significant share of electricity demand growth in the coming decades. It is positive to see industrial players contributing to enable additional power generation, and this agreement is a strong example of that,” says Syvertsen.
“The data center industry is power-intensive, but it also represents flexibility and backup solutions for the grid and plays a role in shaping the future energy system. There are significant opportunities ahead. I am proud that our industry is now contributing to new energy generation, just as traditional cornerstone industries have done before us,” says Gravråk.
“Agreements like this provide power companies with greater predictability in investment decisions and demonstrate how industry can help unlock new renewable energy production. I hope more industrial and commercial players recognize that collaboration can help realize the power they will need in the future,” concludes Syvertsen.
Image: Jon Gravråk, CEO Bulk Infrastructure, Steffen Syvertsen, CEO Å Energi
Media contact:
Einar Stabell, Head of Communications and Corporate Affairs
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