VEO joins Hafslund in the largest hydropower upgrade in Hallingdal in 60 years

VEO has signed a contract with Hafslund Kraft AS to deliver electrification and automation systems for the Hemsil 3 hydropower expansion in Norway. The project represents the largest hydropower development in Hallingdal in six decades and will significantly increase annual production, strengthening Norway’s renewable energy supply through more efficient use of the same waterways.

A historic expansion with significant impact on capacity and production

Hemsil 3 is an expansion of the existing Hemsil 2 facility, but it will be built as a separate power plant from Hemsil 2. The project will utilise a lot of the existing infrastructure from Hemsil 2, eg. the waterways will have some parallel parts from Eikredammen to Gol and a new outlet tunnel to Hallingdalselva.

In practice, Hemsil 3 will operate as a separate powerplant from the existing Hemsil 2 system, optimising production and flexibility across the powerplants. The upgrade will increase annual production by 110 GWh, raise installed capacity by 86 MW, and boost total output from approximately 590 GWh to 700 GWh per year. This enables more efficient use of water resources while supporting Norway’s renewable energy goals.

Electrification and automation systems by VEO

VEO’s scope of delivery includes a Turn-key electrical and automation system delivery, covering the design, integration, and performance of the complete system.

The delivery includes:

• Turn-key electrification and automation systems
• Control and protection systems, including PLC-based control panels
• Power plant auxiliary power supply with AC / DC / Emergency power
• Medium Voltage power production distribution
• High Voltage power distribution
• Cabling and Instrumentation
• engineering, documentation, installation and commissioning services

Civil works will be handled by Hafslund’s contractors, while VEO focuses on the electrical and automation systems, including the necessary design input related to civil works.

Reducing climate emissions while creating local value

The project includes measures to ensure minimum water flow and biotope improvements downstream of Eikredammen. Most of the permanent land use takes place in areas already affected by previous developments, which helps minimise environmental impact.

Compared to conventional projects, climate emissions will be reduced by approximately 22 percent through the use of low-carbon concrete and electric machinery. In addition to the environmental benefits, the project is expected to create significant local value. Local businesses are anticipated to deliver around 10–20 percent of the total investment, creating opportunities worth more than NOK 300 million for goods and services in the Hallingdal region.

The project received its license for expansion in June 2024. Construction began following the signing of the main contractor agreement in November 2025, and the expansion is expected to be completed by the summer of 2029.