Annual and Sustainability Report 2024: A different threat landscape requires a more resilient power grid

"We are facing an increasingly challenging threat landscape, and Statnett is committed to ensure a secure power supply, even in times of uncertainty. We are working in close collaboration with authorities and other Nordic grid operators to strengthen the resilience and preparedness of the power grid," says CFO and Executive Vice President, Cathrine Lund Larsen.

The geopolitical situation and the energy transition are driving significant investment in power grids across Europe. This forms the backdrop for Statnett’s new strategy towards 2030, which aims to increase utilisation of the existing grid and power system while constructing the grid and power system faster and more efficiently. We will also enhance resilience and preparedness in operations and development.

"We will operate efficiently while maintaining a strong focus on sustainability and safety. Our objective is to initiate the right projects at the right time and deliver solutions that are economically viable and beneficial to society," says Lund Larsen.

Solid underlying result

Statnett has delivered a solid underlying result. The underlying result was NOK 1,2 billion in 2024 compared to NOK 1,6 billion in 2023. The reduction in the underlying profit is primarily due to increased costs for system services. At the same time, financial expenses were higher in 2024. Increased costs were partly offset by increased permitted revenue.

Congestion revenue was NOK 11,1 billion in 2024 compared to NOK 9,9 billion in 2023. Due to high congestion revenue, NOK 781 million was paid in compensation to underlying grids in 2024. 

"In recent years, Statnett has returned significant amounts to customers through reduced tariffs and extraordinary reimbursements", explains Cathrine Lund Larsen.

Statnett's total investments were NOK 7,6 billion in 2024, which is NOK 1,5 billion higher than in 2023. The project portfolio continued to grow in 2024, and Statnett plans to more than double the investments in the grid and power system over the next ten years compared to the previous ten-year period. At the end of the year, Statnett had 211 active projects, an increase of 51 projects from 2023. The majority of the project portfolio is in its early phase. Statnett’s ten regional development plans, together with the System Development Plan, serve as key tools for prioritising which projects should be built and when.

The cost of components and equipment for power grid projects have increased significantly as a result of widespread grid investments across Europe.

"The constrained capacity in supplier markets is driving up prices, which will also increase the cost in our project portfolio," says Cathrine Lund Larsen.

Strong Security of Supply and Lower Electricity Prices

Despite extreme weather events, security of supply remained strong throughout 2024.

Electricity prices were reduced across all Norwegian price areas, although price differences between regions remained significant. Additionally, price fluctuations increased due to higher shares of solar and wind power in the Nordic region and in Europe.

"We are working to strengthen interconnection capacity between price areas to help balance price differences and make better use of resources in the electricity system. In autumn 2024, we introduced flow-based market coupling. These are key changes that enable us to utilise the power grid more efficiently across the Nordic region," says Lund Larsen.

New Reporting on Nature, People, and Climate

In 2024, Statnett is reporting for the first time in accordance with the requirements of the Corporate Sustainability Reporting Directive (CSRD). This ensures transparent, comparable, relevant, and reliable sustainability information.

"Sustainability is an integral part of our operations across the organisation. The new sustainability directive provides us with an important tool to strengthen and coordinate Statnett’s efforts in planning and constructing the grid with the least possible impact on both nature and people affected by our activities," emphasises Lund Larsen. 

Statnett's Financial Results

On 20 March 2025, the Board of Directors of Statnett approved the Group's Annual and Sustainability Report for 2024. The Annual Report is enclosed and available on www.statnett.no.

• 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.
• The reported net profit for 2024 was NOK 1,7 billion, compared with a net loss in 2023. The increase in the reported net profit is primarily due to higher tariff and congestion revenue, as well as lower extraordinary reimbursements to grid owners compared with the previous year.
• The difference between the reported financial result and the underlying result, referred to as higher or lower revenue, is adjusted through future grid tariffs. This ensures that, over time, Statnett’s accumulated reported revenues align with the regulated permitted revenue.