Statnett SF - Annual Report 2025

05 Mar 2026 15:35 CET

Statnett SF - Annual Report 2025

Statnett has increased investments in the power system by 40 percent.

Statnett’s total investments amounted to NOK 10.6 billion in 2025, compared with
NOK 7.6 billion the year before. - We are very pleased that we have increased
investments in the power system by 40 percent. This demonstrates that we are
increasing capacity and delivering results, says CFO of Statnett, Cathrine
Lund Larsen.

Statnett’s underlying profit after tax ended at NOK 2.8 billion in 2025, which
is NOK 1.6 billion higher than the previous year.

- We have increased activity across all areas and currently have 248 active grid
projects. That is 37 more than in 2024, and we have increased the number of
projects in the construction phase. Towards 2035 we will invest twice as much as
in the previous decade, says Cathrine Lund Larsen.

An important milestone in 2025 was the new power line between Aurland and
Sogndal. When it was commissioned, Norway obtained a continuous 420 kV
transmission grid from north to south.

- This is one of several measures towards 2040 that will provide greater
exchange capacity between the northern and southern parts of Norway. It is an
important step towards increasing capacity throughout Norway, says Lund Larsen.

Increasing capacity in the existing power system
In addition to building new grid infrastructure, Statnett has implemented
several initiatives to increase the capacity of the power system we already
have.

- The introduction of flow-based market coupling in autumn 2024 and automated
balancing in spring 2025 together constitute the biggest change in power system
operations in several decades. These changes provide increased flow, better
congestion management and higher operational security, says Lund Larsen.

Additional measures include temperature upgrading of power lines and the
introduction of Dynamic Line Rating (DLR), which improve utilization of the
existing grid.

- Over the next 10–15 years, we will upgrade the temperature rating of more than
100 power lines nationwide, increasing line capacity by 20–30 percent,” explains
CFO Cathrine Lund Larsen.

In 2025, Statnett increased the capacity of the existing grid and power system
by 1,000 MW in total. This contributes to increased security of supply, better
flow between bidding zones, and greater flexibility. In the course of 2025, we
connected 490 MW of new consumption and 100 MW of new production. Flexible
connection agreements contribute to better utilisation of the power system and
enable connection of more customers.

Compensation for high system operations costs
The increase in Statnett's underlying result for 2025 is mainly due to
compensation from The Norwegian Energy Regulatory Authority (RME). The
compensation is linked to a permanent loss related to high system operations
costs in the period 2021–2024, and the effect on the 2025 accounts amounts to
NOK 4.9 billion.

- We are very pleased that RME agrees with the need for compensation. It is a
substantial contribution to enable us to make the necessary investments in the
power system, says CFO Cathrine Lund Larsen.

In 2025 Statnett implemented significant measures to keep costs down, including
procurement of equipment and services and more efficient operation and
maintenance of grid assets.

- Achieving cost savings is crucial for our ability to deliver on our societal
mission. We must manage society’s resources in the best possible way, emphasizes
Lund Larsen.

System operations costs were particularly high in spring 2025, but stabilized at
a lower level in the second half of the year. Statnett and market participants
are working to develop tools and processes to further optimize balancing going
forward.

Strengthening work on preparedness and sustainability
The power system is critical infrastructure, and Statnett is an important part
of Norway’s total defence.

- The most important task for Statnett is to safeguard the electricity supply.
In Norway`s Total Defence Year 2026, we will continue strengthening our work on
security and preparedness, and we cooperate closely with authorities and other
stakeholders in the energy sector, says Cathrine Lund Larsen.

In 2025, Statnett developed a comprehensive transition plan for sustainability.
The plan was published in February 2026 and structure efforts to safeguard
climate, nature, and people.

- As one of the first companies in Norway, we have set targets for reducing
greenhouse gas emissions from land-use change. We have also introduced
science-based climate targets, says Cathrine Lund Larsen.

Statnett's Financial Results
(Amounts in NOK million) 2025 2024
Underlying profit 2 843 1 218
Total permitted revenue regulated operations 17 675 17 938
Total operating expenses 17 137 14 341
Recorded profit for the period 792 1 720
Recorded total operating revenue 20 205 18 961
Congestion revenue 13 257 11 063
Higher (+)- and lower (-) revenue -2 629 644
Accumulated higher revenue at the end of period 1 906 4 535
Investments 10 582 7 619

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.

Accounting profit was NOK 792 million in 2025, compared with NOK 1,7 billion in
2024. The decrease in accounting profit is primarily due to increased costs for
ancillary services. Other operating expenses also rose compared with the
previous year, while increased congestion revenue had a positive effect.

The difference between the reported accounting 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. The compensation for costs for ancillary
services contributed significantly to reduced accumulated higher revenue.

The Board of Statnett approved the Annual Report for 2025 on 5 March 2026.
Statnett’s Annual Report is available at www.statnett.no.

Contacts
Cathrine Lund Larsen
CFO
Mobile: +47 979 75 867

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

Anbjørg Bakken
Communications Advisor
Mobile: +47 990 09 260

www.statnett.no

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667662_stane-2025-12-31.zip
667662_Annual report 2025.pdf