Statnett SF Reports 40% Investment Surge and Profit Growth in 2025 Annual Report

Statnett’s 40% investment surge: grid build accelerates in 2025

Statnett has put its foot down on Norway’s energy infrastructure. Investments jumped 40% to NOK 10.6 billion in 2025 (from NOK 7.6 billion in 2024), with a record 248 active grid projects and more schemes moving into construction. The headline strategic win: commissioning the Aurland–Sogndal line, delivering a continuous 420 kV backbone from north to south – a key enabler for moving power where it is needed.

Under the hood, the numbers are a mixed bag. The underlying profit after tax rose to NOK 2.8 billion, helped by regulatory compensation, while the accounting profit fell to NOK 792 million as system operations costs bit. For investors and stakeholders, the message is clear: execution and capacity are scaling up, costs are being wrestled into line, and the regulatory framework continues to do the heavy lifting.

Key 2025 numbers at a glance

Metric (NOK million)	2025	2024
Underlying profit	2,843	1,218
Recorded accounting profit	792	1,720
Recorded total operating revenue	20,205	18,961
Total permitted revenue (regulated)	17,675	17,938
Total operating expenses	17,137	14,341
Congestion revenue	13,257	11,063
Higher (+)/lower (-) revenue	-2,629	644
Accumulated higher revenue (period end)	1,906	4,535
Investments	10,582	7,619

Operational progress: more capacity, better flow

Statnett expanded effective system capacity by 1,000 MW in 2025. It connected 490 MW of new consumption alongside 100 MW of new production, using flexible connection agreements to squeeze more out of existing assets. This should support security of supply and improve power flows between bidding zones.

Two big operational shifts landed recently: flow-based market coupling (autumn 2024) and automated balancing (spring 2025). In plain English, these tools allocate transmission capacity more efficiently and automate the real-time balancing act between supply and demand. Combined, Statnett says they boost flow, cut congestion and lift operational security.

Upgrading the existing grid: cheaper megawatts first

• Temperature uprating: over the next 10–15 years, more than 100 lines will be uprated to run hotter, typically lifting capacity by 20–30%.
• Dynamic Line Rating (DLR): using live weather and line conditions to increase safe current ratings and unlock latent capacity.

The capital-light theme here is positive: squeezing out incremental capacity can defer bigger builds and speed up connections, which matters for both system reliability and customer lead times.

Financials: strong underlying, softer accounting profit

Statnett’s underlying profit climbed to NOK 2,843 million, up NOK 1,625 million year on year. Management points to compensation from the regulator, RME, linked to high system operations costs in 2021–2024, which had a NOK 4.9 billion effect on the 2025 accounts. This is a substantial stabiliser for the balance of risk and return in a volatile operating environment.

However, the recorded accounting profit declined to NOK 792 million from NOK 1,720 million. The company cites increased costs for ancillary services – the tools and services used to keep the grid stable – as the main drag. Operating expenses rose versus 2024, though higher congestion revenue provided a partial offset.

Regulatory mechanics: permitted revenue and tariff smoothing

Statnett operates under a permitted revenue cap set by the regulator. The “underlying result” reflects performance against that cap and is the most representative profitability measure. The gap between the reported accounting result and the underlying result is booked as “higher or lower revenue” and is later trued up via future grid tariffs.

In 2025, higher/lower revenue was -NOK 2,629 million and the accumulated higher revenue balance fell to NOK 1,906 million (from NOK 4,535 million). The compensation for ancillary services costs contributed significantly to this reduction. In short, tariff adjustments will continue to align long-term revenues with the allowed level.

Costs and cash discipline

System operations costs were elevated in spring 2025 but stabilised in the second half. Statnett says it implemented measures to contain costs, including smarter procurement and more efficient operation and maintenance. With investments scaling up toward 2035 – with plans to invest twice as much as in the previous decade – cost discipline will remain a key watchpoint.

Strategic milestones: 420 kV backbone and 248 active projects

The Aurland–Sogndal line was the standout network milestone, creating a continuous 420 kV spine from north to south. This should enable greater exchange capacity between regions and support national decarbonisation and electrification goals. The project pipeline is swelling too: 248 active projects, 37 more than in 2024, and a larger share already in construction.

Sustainability and security: targets and preparedness

Statnett published a comprehensive sustainability transition plan in February 2026, setting targets to safeguard climate, nature and people. Notably, it has set targets for reducing greenhouse gas emissions from land-use change and introduced science-based climate targets. Given the footprint of grid development, these commitments will be closely watched.

On security, Statnett underlines its role in Norway’s critical infrastructure and total defence. In Norway’s Total Defence Year 2026, it plans to continue strengthening security and preparedness in cooperation with authorities and sector stakeholders.

Why this matters for investors

• Scale-up confirmed: NOK 10.6 billion invested in 2025 and 248 active projects signal real delivery capacity, not just plans.
• Resilience from regulation: the NOK 4.9 billion compensation demonstrates the regulatory framework’s willingness to address exceptional cost periods.
• Operational gains: 1,000 MW of additional system capacity in 2025, plus market design and automation upgrades, should improve flows and reliability.
• Cost pressure remains: ancillary services and overall opex increased; sustained cost control will be crucial as investment doubles toward 2035.
• Tariff smoothing ongoing: the lower accumulated higher revenue indicates continued tariff true-ups ahead to align with permitted revenue.

My take: broadly positive momentum with eyes on execution

This is a solid year for Statnett. The combination of a beefed-up investment programme, tangible capacity additions, and supportive regulatory outcomes outweighs the headline dip in accounting profit, in my view. The strategic 420 kV backbone completion and the switch to more advanced market and balancing tools point to a system that is getting both bigger and smarter.

The risks are not trivial – costs, delivery bottlenecks, and the sheer complexity of upgrading and expanding the grid at speed. But the playbook is clear: keep unlocking low-cost capacity, maintain procurement discipline, and stick to data-driven operations. If Statnett keeps that balance, the roadmap to 2035 looks increasingly bankable.

Where to read more

• Statnett’s Annual Report page: www.statnett.no
• RNS PDF of the announcement: RNS 5539V PDF