The plants will have a combined installed capacity of 25MW and require an investment of approximately $49m.

Smakraft managing director Rein Husebo told Bloomberg that the plants will generate 65GWh of electricity per annum by running water through their turbines.

Husebo added that the country had a considerable potential for small hydro projects and that they could be generating 4-5 terawatt-hours energy by the year 2020.

"The government has established a system to build this and it’s working well. At this stage we don’t need more from the government," opined Husebo.

Subsidiary of Norwegian utility Statkraft, the company currently operates 34 small hydro projects while 140 of them are either awaiting approval or are in the planning pipeline.

Norway, according to the International Energy Agency statistics, generated 95% of its electricity from hydropower sources in 2010.