Refurbishment | Powering the future
As the global energy transition accelerates, investment in hydropower refurbishment and expansion is gaining momentum. From Austria to Iceland, Canada to Italy, major projects are breathing new life into aging infrastructure while integrating cutting-edge technology for a cleaner, more resilient power supply
ACROSS THE WORLD, HYDROPOWER is undergoing a transformation. Aging plants are being modernised, new projects are enhancing efficiency, and investments in cutting-edge technology are securing clean energy for the future. Recent refurbishments and expansions highlight the crucial role of hydropower in supporting the global shift toward renewables. A major investment in European hydropower is taking shape in Austria, where Energie AG Oberösterreich is embarking on a €600 million expansion of the Ebensee pumped storage power plant in Upper Austria supported by a €320 million loan from the European Investment Bank (EIB). The Ebensee facility will function as a “green
battery,” balancing fluctuations in wind and solar power generation while ensuring a stable energy supply. Financing agreements for the project were signed at EIB headquarters in Luxembourg. This investment is the largest in Energie AG
Below: Iceland’s National Power Company, Landsvirkjun, has awarded COWI a contract for the engineering design of a 65MW expansion to the Sigalda Hydropower Station
Oberösterreich’s history and marks a significant step in Upper Austria’s energy transition. An additional €80 million in EIB financing has been preliminarily approved for the Traunfall run-of-river hydropower plant, which will replace three aging plants. Final financing contracts for the Traunfall project are expected in 2025, pending Supervisory Board approval. “Rapidly expanding renewable energy is crucial for decarbonising the economy. The hydropower plants by Energie AG Oberösterreich are another important step on the road to a climate-neutral energy supply, and will help reduce Europe’s dependence on oil and gas imports,” said EIB Vice-President Thomas Östros. “Our strategy at Energie AG Oberösterreich has set a course for maximum carbon reduction throughout the entire company. All told, we will be investing €4 billion by 2035 to expand renewable energy and grids. We are also making major investments in green hydrogen production,” said Leonhard Schitter, Chair and CEO of Energie AG Oberösterreich. “In the coming decades, the energy sector – including Energie AG Oberösterreich – will be influenced by high investment requirements for the process of transformation needed to develop a sustainable energy system. A key success factor in this process will be providing for future financing requirements early, with optimal borrowing and framework conditions. With the EIB, we are delighted to have a strong partner on board for this challenge,” said Andreas Kolar, CFO of Energie AG Oberösterreich. The project aligns with REPowerEU, the European Union’s plan to reduce fossil fuel dependence. Under this initiative, the EIB can finance a larger share of project costs than the usual 30-50%. It also supports Austria’s National Energy and Climate Plan, which aims
26 | April 2025 |
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to transition all electricity generation to renewable sources by 2030.
Life extension at Rowallan In Tasmania, Australia, the Rowallan Power Station
has recently completed a major refurbishment, demonstrating the long-term viability of hydropower infrastructure. The upgrade has improved efficiency, reliability,
and flexibility, with new online monitoring systems to reduce breakdowns and upgraded control systems. Hydro Tasmania’s Acting CEO Erin van Maanen said the 10.5MW Rowallan Power Station plays a vital role in the state’s hydropower network: “Commissioned in 1968, Rowallan Power Station is the first of eight power stations in the Mersey-Forth Scheme, which generates up to 290MW. “Water flows from Lake Rowallan through the Scheme, generating electricity multiple times from the same water. Every drop counts and contributes to Tasmania’s enviable renewable energy capacity.” Hydro Tasmania Site Manager Scott Tatsi led the
refurbishment, which involved around 100 Hydro Tasmania staff and 60 specialist contractors. “We completely stripped down the machine and upgraded pretty much every component, including the spiral case, physical controls and electrical control panels. Some were original parts from the 1960s,” Tatsi said. “It’s very specialist work, so to have our apprentices working and learning alongside experienced professionals was a great collaboration. It was a very proud moment to see the station back up and running again, better than ever.”
Specialised turbine equipment was sourced
from Europe, Turkey, and Romania, while Hydro Tasmania’s local Cambridge Workshop contributed to manufacturing, refurbishment, and testing. van Maanen said the refurbishment is part of
Hydro Tasmania’s broader strategy to modernise its infrastructure. “We’re making sure our hydropower network
is fit to continue providing clean energy for future generations,” she said.
Expanding Sigalda Iceland is also ramping up its hydropower capacity,
with Landsvirkjun awarding engineering firm COWI a contract for a 65MW expansion at the Sigalda Hydropower Station. The project, which began in January 2025, is
expected to be completed by late 2028. COWI’s work includes engineering design, tender
preparation, construction documentation, risk and cost analyses, as well as design reviews. The company will
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