Statnett SF – Results first half-year of 2025

28 Aug 2025 14:37 CEST

Statnett SF – Results first half-year of 2025

Statnett increases investments

Statnett has increased investments in the power grid and electricity system. At
the same time, increased system operation costs contributed to a negative
underlying result in the first half of 2025.

- 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 for
Finance 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 remain uncertain but have declined over the
summer. Statnett and the other Nordic transmission system operators are
continuously working to further develop and adjust automated electricity
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 remain 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 energized 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
(Amounts in NOK million) H1 - 2025 H1 - 2024
Underlying profit -1 261 1 176
Total permitted revenue regulated operations 8 651 9 223
Total operating expenses 9 568 7 075
Recorded profit for the period 737 -313
Recorded total operating revenue 11 530 7 823
Congestion revenue 7 338 3 295
Higher (+)- and lower (-) revenue 2 536 -1 910
Accumulated higher revenue at the end of period 7 097 1 981
Investments 4 744 3 376

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 and
available on www.statnett.no


Contact:
Cathrine Lund Larsen
Chief Financial Officer
Mobile: +47 979 75 867

Petter Erevik
Director of Finance
Mobile: +47 952 82 840

Anbjørg Bakken
Senior Communication Advisor
Mobile: +47 990 09 260

www.statnett.no

More information:
Access the news on Oslo Bors NewsWeb site

654126_Statnett Half Year Report 2025.pdf