The CEO of Hydro Energy, Kari Ekelund Thørud, recently stated that the company will not pursue the type of large-scale wind deals it once did. Hydro Energy, part of the Norwegian metals giant Hydro, has learned from the past and will seek multiple smaller power purchase agreements (PPAs) instead of a single massive contract.
Markbygden Wind Deal Ends in Failure
Hydro Energy’s previous deal with the Markbygden wind farm, one of Europe’s largest, ended in failure when it failed to deliver the promised power to Hydro’s metals facilities. This setback has led the company to rethink its approach to future energy deals.
Shift to Multiple Agreements for Stability
Kari Ekelund Thørud explained that if Hydro were to sign a wind PPA today, it would likely be structured on a “pay as produced” basis. This means the company would pay for energy as it is produced, rather than committing to a fixed supply over a long period. This shift reflects the changing dynamics of the energy market, where large-scale, long-term deals are no longer the preferred option.
Hydro Energy’s Plans for the Future
Looking ahead, Hydro Energy aims to secure power agreements totaling 4 terawatt-hours (TWh) of energy starting in 2030. However, this goal presents more complexity than previous agreements, as the energy landscape evolves and companies look for more flexible and reliable power solutions.
