Solar energy

Facts about solar energy

• 5.4% of the world's electricity generation came from solar power in 2023 (IEA)  
• The International Energy Agency predicts solar to become the world’s largest energy source as soon as 2029 
• From as early as 2020, solar was widely considered the cheapest energy source in the world (Carbon Brief/IEA) 
• In 2024, Statkraft's total production from solar power was 238 GWh. That was from an installed solar power capacity of 307 MW (Statkraft Annual Report) 
• Approx. 80-90% of solar panels are glass and aluminum, both of which are recyclable materials. That represents great potential for recycling old panels and creating a circular economy in the industry. 

What is solar energy and how does it work? 

We have a lot to thank the sun for. Apart from the small job of being the source of all life on Earth, the sun provides us with solar power, a clean, easily accessible and inexhaustible source of energy. And thanks to solar cells, we can harness this energy and convert light into electrical current.  

Solar parks are, not surprisingly, found in areas that experience a lot of sunshine. A solar park consists of several solar panels that feature elements called photovoltaic cells. These panels maximise the effect from the sunlight by adjusting themselves to where the sun is in the sky.  

It’s also a bit counterintuitive, but did you know that solar cells don’t need direct sunshine to produce energy? Both gray and cloudy days can be enough. That's because it is the light itself that gives us power, not the sun's rays. 

You can see how solar power works in this video:  

But what about Statkraft’s work with solar power? We develop and own several solar power plants across Europe and South America. In Europe alone, we have a total output of 10 GW either under planning or development. Our strategy is to develop larger industrial plants and become a leading developer in the European solar energy market. 

How we create electricity from the sun, step by step: 

1. . Sunlight contains particles called photons.

2. When the sunlight hits the solar cells at a solar park, the photons are absorbed by a material called silicon. Silicon is an element that conducts electric current and creates electricity. This is called the photoelectric effect.

3. The electricity created can then be stored in batteries or sent directly to the power grid, and eventually to homes and businesses who need it.

4. As long as we have sunlight, we can use it to produce renewable energy.

    

The scale of renewable development is growing worldwide. In fact, numbers from the IEA show that renewable energy investment has nearly doubled in a decade. In that surge, solar and wind are expected to dominate the future power system. Actually, we’ve already seen the first signs of this in real time: in 2024, solar power became larger than coal power in the EU's energy mix, just as wind power surpassed gas power in 2023.  

The reality is that solar power’s potential is enormous. Here’s an example: if we harnessed all the sunlight that hits the Earth for over 40 minutes, we would have enough energy to cover the world's energy needs for an entire year. 

Another thing that makes solar power a bit unique is that it’s a very scalable energy source that can be built quickly. It’s an innovative technology, too. Thanks to rapid technological development, we’re already seeing solar plants that produce more energy, require less maintenance and have a longer lifespan than ever before.  

Production costs are also decreasing, which makes solar power more cost-effective and competitive – especially compared to fossil fuels. Today, you can find solar power in many different shapes and sizes, from small rooftop installations to large industrial plants.  

Want to know more about what role solar power will play in the future? Read our energy report, Green Transition Scenarios.  

Are you curious about Statkraft's strategy to contribute to the zero-emission society of the future? Get to know our strategy here. 

Statkraft's solar power production 

Statkraft has long been both developing and investing in solar power. In 2024, Statkraft produced 238 GWh from solar power, which corresponds to 0.4% of our total energy production.  

Our power production has several positive benefits, such as how we support local businesses during the plant’s lifetime, contribute to skills development, and deliver tax revenues. 

Where does Statkraft have solar power plants and where is development planned? 

Today, Statkraft develops and owns multiple solar power plants in Europe and South America. With our ambition to become a major developer of solar power, we’re always looking for opportunities in both of those regions.  

We have a number of projects in the early stages, four of which are in the development phase and three of which we own.  

Explore our solar power plants around the world in this map.

Solar power in local communities 

The reality is that solar power, like all forms of energy production, has a direct impact on local communities and people's lives. That's why it's important for us to listen to those who know the local environment best, and involve the municipalities, landowners, neighbours and other stakeholders in a good and systematic way. Here are just a few of the ways we follow through on this: 

• Consulting and collaborating with authorities, local communities, organisations and other relevant parties throughout the project's life cycle 
   

• Using local development programs that reduce negative impacts and map out measures to give back to local communities 
   

• Using local suppliers that strengthen local employment 
   

• Assessing and managing all impacts against international frameworks, such as the UN Guiding Principles on Business and Human Rights, and IFC standards 
   

• You can read more about how we collaborate with local communities here.  

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Read more about how we work with local communities here

How does solarenergy affect the price of electricity? 

In the power market, prices are set based on supply and demand. Fluctuations occur when the supply of power changes. In Europe, wind power and solar power often complement each other (when there is no wind, the sun often shines). In addition to that, both wind and solar power work in conjunction with hydropower.

That means that wind and sun can produce power when there is wind and daylight, so that hydropower can be saved for periods with less wind and darker times of the day. In short, that’s how solar power provides an important balance in the power system that contributes to more electricity prices over time and contributes to increased energy security as well as much fewer carbon emissions. 

Solar power has another trick up its sleeve: it also works well in combination with battery storage. When the two work together, and solar energy is stored to be used later when needed, solar power becomes even more reliable, playing a bigger role in ensuring a stable power supply.  

Solarenergy, sustainability and the environment 

If we’re going to slow climate change, we’re going to need to transition quickly from fossil fuel energy sources to renewable ones. That means we’re going to need lots more renewable energy, including solar. Right now, solar power already supplies 10% of Europe's electricity and is cheaper than fossil fuels. This is good news, especially for European industry, which can gain a major competitive advantage by switching from gas to electricity from renewable energy. It is also a big plus that solar power is scalable and can be expanded quickly. 

That said, although solar power is one of the most environmentally friendly energy sources we have, it can have an impact on the environment.  

Some examples of that impact could be: 

• Larger industrial parks taking up land from the surrounding area  

• Construction of roads and other infrastructure in the area around the solar park causes interference with nature  
   
• Impact on animals and flora/fauna in and around the plant. 

With this in mind, it’s important to note that we have people and teams dedicated to proactively working on research activities and careful planning to predict, understand and minimise the environmental impact of our power production. 

We are also committed to finding solutions that enhance the positive ripple effects of solar farms. A great example of that is agrivoltaic agriculture (aka. agri-PV), which combines the same area for both agriculture and power production. How does it work? In really basic terms, it works by designing solar panels to make room for tractors, animals, plants or others who also use the area around the facility. The benefits of this can include increasing the farmer's income.   

Innovation in solar power 

The sun may be our oldest energy source, but there’s still a lot of innovation happening in solar power. We already have solar plants that produce more energy, require less maintenance and have a longer lifespan than before. In addition, new design solutions mean that solar cells can be less visible in the landscape and combined with agriculture (as referenced above). In fact, Statkraft has its own experts that research innovation in agri-PV. 

Several years of experience have given us good knowledge of where and how to plan, build and optimise solar power plants. We also collaborate with suppliers who work with the latest in innovation and technological development. As a significant player in the power industry, we’re also proud to be an important contributor to national and international research centers and networks.  

Here you can read more about innovation in Statkraft.