🇳🇴 Redesigning Norway’s hydropower inside the mountain

Norway’s Lysebotn 2 Hydropower Plant: A Leap Forward in Renewable Energy Inside the Mountain

Forsand, Norway – January 29, 2026

Norway’s Lyse AS is set to revolutionize renewable energy with the completion of the Lysebotn 2 hydropower plant, a cutting-edge facility built inside a mountain at the end of Lysefjord. This ambitious project replaces the existing Lysebotn 1 plant and will generate 15% more clean energy—enough to power 75,000 households annually—while maintaining the same water reservoirs and dam.

A Model of Efficiency and Innovation

The new 370 MW plant, scheduled to commence operations in early 2018, leverages advanced engineering to maximize efficiency. By drilling an 11-kilometer tunnel network and installing two state-of-the-art Francis turbines, Lysebotn 2 will increase annual electricity production to 1,500 GWh. The project’s design ensures minimal environmental impact, as all major construction is contained within the mountain.

“We are proud to be heading one of the biggest renewable energy projects in Norway. The new plant will play an important role in the new market possibilities and contribute substantially to Lyse Group’s revenue in the future.”

Bjørn Roger Otterdal, Project Director at Lyse

Strengthening the Nordic Power Grid

Lysebotn 2 is strategically located next to a critical junction for Norway’s national power grid. Its ability to rapidly dispatch electricity and provide balancing services will be vital as the Nordic region integrates more intermittent renewable sources like wind and solar.

“Wind and solar power cannot be regulated and are totally dependent on the weather conditions. With more renewable sources like that in use, it is necessary to have a steady source of power to keep the voltage stable. Lysebotn 2 can provide that stability.”

Bjørn Roger Otterdal

The project is financed by a NOK 950 million (EUR 113 million) loan from the Nordic Investment Bank (NIB), underscoring its significance for regional energy security and sustainability.

Environmental and Economic Benefits

– Increased Output:** 15% more clean energy from the same water resources.
– Minimal Footprint:** Construction inside the mountain reduces environmental disruption.
– Grid Stability:
– Enhances the reliability of Norway’s electricity supply, supporting the transition to a low-carbon future.

About Lyse AS

Lyse AS is Norway’s sixth-largest hydropower producer and a leader in renewable energy innovation. The company’s portfolio includes electricity, natural gas, heat, refrigeration, and telecommunication services.

Originally published on January 29, 2026 by Nordic Investment Bank.

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