Statkraft is seeking a licence to upgrade the Nore hydropower plants in Norway with a 4 billion NOK (€340m) budget.
The new power plant will be able to deliver more electricity when needed and contribute to more stable prices, the company said.
The Nore plants consist of the Nore 1 and Nore 2 power plants.
Nore 1 was completed in 1928, while Nore 2 began production in 1946. The facilities are located on the Numedalslågen river in Norway.
President and chief executive Birgitte Ringstad Vartdal (pictured) said: “In the coming years, Statkraft will build the next-generation hydropower system, and we will start five major upgrades by 2030.
“The licence application for upgrading and expanding the Nore plants is an important step in that direction.”
Nore 1 produces 70 times more power than the Hammeren power plant in Maridalen, which supplied the Norwegian capital from 1900, and was built to cover all of Oslo’s electricity needs.
Vartdal added: “When the first Nore plant was built, it was the largest in the country and produced one-fifth of all electricity in Norway.
“The power plant was also a catalyst for the industrialisation of Oslo. And now, 100 years later, we will ensure that it supplies the Norwegian society with electricity for another 100 years.”
Statkraft is considering two options for the upgrade. The preferred option is to combine the plants into one new power plant inside the mountain, but there is also an alternative where the two power plants are moved into the mountain from where they are currently located.
The first option will nearly double the capacity from 274MW to 500MW and increase electricity production by approximately 200GWh to about 1700GWh.
The alternative option will increase the combined capacity by 65MW and boost production by around 150GWh.
Statkraft project maanger Hanne Kristin Ommedal said: “In the power system of the future, there will be a great need to regulate production to deliver more electricity in a short amount of time.
“Therefore, we are constantly looking for opportunities to increase the capacity of our plants.
“More capacity can help reduce price peaks, as more and more unregulated renewable power enters the power mix.
“The new Nore power plant will be important both for the region and for Norway.”
The licence application will now be processed by the Norwegian Water Resources and Energy Directorate (NVE), and as part of this, a hearing process will be conducted.
The Ministry of Energy will decide on a possible licence and its conditions.