Professional Documents
Culture Documents
August 2009
ExecutiveSummary
Norwayistheleadingproducerofelectricitybasedonrenewableenergysources HydroandwindenergyarethepredominantenergysegmentsinNorway In2008,installedcapacitystandsat30,789MWwhileelectricitygeneratedispeggedat142,727 GWh Drivers:Conducivegeographicaldistributionforpowergeneration,highprecipitationlevels, favorablewatersystem,technologicaldevelopmentsandfluctuatingcrudeoilpricesandfalling petroleumproduction Challenges: Power distribution leading to cost escalations and conflicts with other business Challenges:Powerdistributionleadingtocostescalationsandconflictswithotherbusiness interests Energy21 Promotionofenvironmentallyfriendlyconsumptionandgenerationofenergy ENOVA Strategyforresearchanddevelopmentoftechnologywithintheenergysector Introduction of the Offshore Renewable Energy Act Creating a regulatory framework for offshore IntroductionoftheOffshoreRenewableEnergyAct Creatingaregulatoryframeworkforoffshore windplants RENERGIProgramme Cleanenergyforthefuture InternationalCooperation Participatingtowardsexpandingmarketsandinordertopartakein latesttechnologicaladvancements latest technological advancements StatkraftistheleadingplayerinNorwayaccountingforgenerating33.8%oftotalmarket MajorPlayers
Market
Drivers& Challenges
Government Initiatives
Competition
RENEWABLEENERGY NORWAY.PPT
RENEWABLEENERGY NORWAY.PPT
TheliberalizedregimeintherenewableenergysectorinNorway hasledtoastronglygrowingmarket
Overview
InEurope,Norwayistheleadingproducerof electricitybasedonrenewableenergysources Renewableenergyistheprimarysourceof electricitygenerationinNorway Hydroandwindenergyarethepredominant renewableenergysegments renewable energy segments Playersinsolarandbiofuelmarketare prevalenthowevertheycaterprimarilytothe exportmarketduetothelackofdomestic demand Privateownershipisfoundinallareasofthe powersector(generation,transmissionand trading)
~49%oftheprivatecompaniesaresolelyengaged intrading
InstalledCapacity
MW
40,000 30,000 20,000 10,000 0 28,327 28,793
+2%
29,268 30,313 30,789
2004
2005
2006
2007
2008
ElectricityGeneration(GWh)
ThermalPower HydroPower GWh
150,000 100,000 50,000 0
WindPower 137,948 0.7% 121,715 121 715 0.9% 98.5% 0.6% 0 6% 2006 137,387 1.1% 142,727 0.8% 0 8%
Expectedtohaveaccesstoupto40TWhof renewableenergyin20202025
98.9%
98.3%
98.6%
0.4% 0 4% 2005
0.7% 0 7% 2007
0.6% 0 6% 2008
RENEWABLEENERGY NORWAY.PPT
Hydropoweristheprimarysourceofenergyinthissegmentand hasfurtherpotentialduetotheexistingwatersystem
Overview
Norwayisthesixthlargesthydropowerproducerin theworldandhastheworldslargestpercapitahydro powerproduction d i Electricitygenerationisthemostimportant commercialuseofNorwegianwatercourses
Thereareabout4,000riversystemsinNorway
HydroEnergy
InstalledCapacity
MW
30,000 27,925 28,268 28 268
+1%
28,691 28 691 29,043 29 043 29,474 29 474
20,000
10,000 10 000
2004
2005
2006
2007
2008
HydropowerPotential(2009)
Developed 30% Undeveloped
60%
RENEWABLEENERGY NORWAY.PPT
Longcoastlinemakesthisregionextremelyfavorableforthe developmentofwindenergyprojects
Overview
Hosts18windfarmsand200windturbineswithan installedcapacityof429MWin2008 Majorwindenergypotentialislocatedmostlyonthe westcoastalareas In2008,theNorwegianWaterResourcesandEnergy Directorate(NVE)awardedlicensestoanother18 projectswithacombinedinstallationof~1,400MW projects with a combined installation of ~1 400 MW Thegovernmentplansondevelopingwindpower stationswithageneratingcapacityof69TWhby 2015 Alicensetobuildandoperateawindfarmisgranted A license to build and operate a wind farm is granted foraperiodof25years Expectedtodevelophugeseabasedwindparks costinguptoUSD44bnby2025
Developmentrequireslargescalewindparkswithinstalled capacityof5,000to8,000MW Thecostofinstalledcapacity/MWis~USD3.3 4.7mn Theenergygeneratedisexpectedtobeequivalentto8 nuclearpowerplants
500
WindEnergy
InstalledCapacity
MW +28%
400 300 200 100 0 160 267 325 429 385
2004
2005
2006
2007
2008
ExpectedProduction
TWh
3.0 2.5 2.0 1.5 1.0 0.5 0.0 1 3
+83%
2
2008
2009
2010e
RENEWABLEENERGY NORWAY.PPT
RENEWABLEENERGY NORWAY.PPT
Driversandchallenges
Drivers
Conducivegeographicaldistribution forpowergeneration Highprecipitationlevels Favorablewatersystem F bl t t TechnologicalDevelopments Fluctuatingcrudeoilpricesandfalling Fl t ti d il i d f lli petroleumproduction
Challenges
Powerdistributionleadingtocost escalations Conflictswithotherbusinessinterests
RENEWABLEENERGY NORWAY.PPT
Geographicalpositioningofthenationcoupledwithhigh precipitationlevelsaremajordriversinthemarket
Conducivegeographicaldistributionforpowergeneration
Highproductionperinstalledunitcapacityisachievedduethefavorablewindconditions Theextendedcoastlineprovidesforstrongopportunityinwindpowergeneration Fluctuationsinpowergenerationisminimal
Ithasbeenestimatedthatonanaveragegloballysinglewindfarmscanexperiencepowerswingsfromhour tohourofupto60%ofitscapacity Maximumhourlyvariationacross350MWofaggregatedwindfarmsinGermanyis~20% Greatest hourly variations in Norway is less than 10% (German ISET research) GreatesthourlyvariationsinNorwayislessthan10%(GermanISETresearch)
Impact
Theregionexperiencesstrongwindspeedsannuallymakingitanextremelyfavourable destinationforlargescalewindfarmswhichoperateefficiently
Typicalsitesatthecoasthaveannualmeanwindsintherangeof8to10m/s ThisisconsiderablybetterthanthetypicalwindconditionsprevalentinsurroundingregionsofDenmarkor y yp p g g northernGermany
HighPrecipitationLevels
Precipitation is highest in coastal and central parts of western Norway and has attracted PrecipitationishighestincoastalandcentralpartsofwesternNorwayandhasattracted investorsinthisspace
ThemeanannualprecipitationinlargepartsofwesternNorwayis3,0003,500mm MeanannualprecipitationislowestintheupperOttavalley(300mm)andininlandpartsofFinnmark county(250mm)
Impact
RENEWABLEENERGY NORWAY.PPT
Theexpansivewatersystemisextremelyconducivetohydro powergeneration
Favourablewatersystem
Norwaysfastflowingriversystemsprovidesforstrongpotentialinhydropowergeneration Theopportunitythatistechnicallyandfinanciallyavailabletogenerateelectricityiscurrently peggedat~205TWhperyear Growthpotential
Developedmeanannualgeneratingcapacityis121.8TWh Remainingpotentialforthedevelopmentofpowerstations,thatisnotprotected,standsat~37.7TWhper year year 45.5TWhperyearofthetotalhydropowerpotentialislocatedinprotectedwatercoursesandisnot availablefordevelopment
Impact
HydroPowerPotential
5% 9%
1% 3% 1% 59%
22%
RENEWABLEENERGY NORWAY.PPT
10
Largescaletechnologicaldevelopmentsleadingtocostefficient energyproductionwillboosttheindustry
TechnologicalDevelopments
MajorexpenditureonR&Dleadingtotechnologicallysuperiorproductshasboostedthemarket andmadetheprocessofpowergenerationefficientandprofitable Manyplayershavebeenfocusingonadvancementsinequipmentusedforgeneration,inorder tocapturealargermarketshare
OffshorewindpowerTechnology
Swayiscreatingwindmillsthatfloatwithstrongresistancetolargewavesandtidalcurrents Preferredtofixedconstructionsasitissubjecttolesserwearandtearwiththewaterkeepingitstableasaresultofwhich capitalcostsarereducedsubstantially Thecompanyplanson5MWprototypeataninvestmentofUSD42.9mnandisestimatedtobeoperationalby2010 StatoilHydrodevelopedaprototypewhichwastestedinTrondheimwithEnovagrantingUSD9.8mn Lysewantstousefloatingwindmillstorealizea25MWdemonstrationfarmsoutheastoftheislandofUtsira Thisisexpectedtoleadtonewopportunitiesforexploitationofoffshorewindpower,astheturbinescouldbeplacedevenin countriesthatlackshallowwatersofftheircoasts countries that lack shallow waters off their coasts Relocationoflandbasedwindfarmstolocationsmilesoutatseawillbenefitmilitaryradaroperations,fisheries,theshipping industry,tourism,birdlifeandthuswindpowergenerationwillhavenoimpactonlanduse
Impact
Modificationstoexistingturbinesisexpectedtofurthergrowthintheindustry
ChapdrivepartneredwiththeCentreforRenewableEnergyandVivaASonaUSD1.2mnprojecttoreduce theweightofturbinesthatwouldbeneededinlargeoffshorewindtowerstructureswithathirdofthe the weight of turbines that would be needed in large offshore wind tower structures with a third of the fundingwasprovidedbyRENERGI
Amajoradvantageforwindparksindeepwateristhattheyarehardlyvisibleandthusreceive minimalpublicresistance
RENEWABLEENERGY NORWAY.PPT
11
Variationsinoilpricesandfallingpetroleumproductionwillallowfor majordevelopmentofrenewableenergy
Fluctuatingcrudeoilpricesandfallingpetroleumproduction
Recentvolatilityinthepricesofcrudeoilhasaffectedlevelsofdemand.Thiswillactasa majordriverinthemarketasplayersaremoreinclinedtowardsusingpowergenerated throughalternativeinexhaustiblesourcesofenergywithmarginalfluctuationsinprice th h lt ti i h tibl f ith i l fl t ti i i
USD/barrel
150 100
Impact
CrudeOilPrices
71.78
50 0 Aug07 Sep07 Nov07 Dec07 Jan08 Feb08 Jul08 Sep08 Nov08 Dec08 Jan09 Feb09 Mar09 Apr09 May09 Jun09 Jul09 Aug09
Norwaycanharnessitssignificantwindenergyresourcestodeliverupto40TWhperyear
ItwillgeneratesignificantrevenuefromEuropeancustomerstooffsetdecliningfossilfuelrevenue PetroleumProductionLevels
000barrels/day
4,000 3,000 2,000 1,000 , 0 3,131 3,042 2,954
6%
2,698 2,491 2,290 2,182
2002
2003
2004
2005
2006
2007
2008
RENEWABLEENERGY NORWAY.PPT
12
Issuespertainingtopowerdistributionandconflictingbusiness interestsareactingasbarriersinthemarket
Powerdistributionleadingtocostescalations
Norwayhasoneofthelongestcoastlinewhichmakesitarenewableenergyhub,however,it hasrelativelyfewinhabitantsdistributedacrossthecountry Majorpartofthepopulationismainlysettledinsouth,southeastofNorwaywhilethe productionismainlyalongthewesterncoastandnorthernregion Inordertoreachtheconsumers,energyhastobetransferredbyoverheadlinestothesouth Furthermore,largescaleinvestmentsneedtobemadeonundevelopedgridsinordertoaccess alargeconsumerbase l b Highcostofgridconnectionsinremoteareaswithstrongpotentialforwindenergydeters playersfromenteringthemarket
Impact
Conflictswithotherbusinessinterests
Developmentofwindpowerplantsandassociatedinfrastructureleadtomajorconflicts Thisclashesdirectlywithbusinessinterests,suchastourism,reindeerhusbandry,aswellas militaryradarinstallationsandareaddressedbytheNVEslicenseprocessing Projectsalongthecoastlinehaveseenstronglocalresistanceprimarilydueto
Disturbanceofprotectedfauna Obstructingfisheriesandrecreationalareas Leadingtovisualandaudiblepollution
Impact p
Thishasledtomajorcostescalations
Startup delays affect 95% of wind power projects in Norway and the most common cause of delay is a Start updelaysaffect95%ofwindpowerprojectsinNorwayandthemostcommoncauseofdelayisa planningobjection
RENEWABLEENERGY NORWAY.PPT
13
RENEWABLEENERGY NORWAY.PPT
14
Frameworkofthegovernmentinstitutionsintheenergysector
MinistryofPetroleum&Energy
DepartmentforEconomic andAdministrativeAffairs
Energy&WaterResource Department
Oil&GasDepartment
ClimateIndustry& TechnologyDepartment
EnergyPolicy
WaterResources andAreaPlanning
HydroPowerand EnergyLaw
ElectricityMarket
Renewableand EnergyEfficiency
EnovaSF
NorwegianWaterResourcesand EnergyDirectorate
StatnettSF
MinistryofPetroleumandEnergysmaintaskistoprovideanintegratedenergypolicybasedonefficientuseof energyresources
RENEWABLEENERGY NORWAY.PPT
15
Majororganisations(1/2)
BodiesundertheMinistryofPetroleum&Energy NorwegianWaterResourcesandEnergyDirectorate ManagesNorwayswatercourses Promotesefficientelectricitytrading,costeffectiveenergysystemsand efficientenergyuse Playsavitalroleinemergencyresponsetofloodinganddamfailure PerformsR&Dactivitiesandmaintainsinternationalcooperationinitssphere
Statnett Establishedin1992 Responsibleforconstructionandoperationof thecentralgrid g Ownsabout87%ofthecentralgrid,and operatestheentiresystem Responsibilitiesincluderegulatingtheoverall powerbalanceatalltimesinorderto facilitatesatisfactorysupplyqualityacross Norway N
Gassanova Establishedin2007 ItistheGovernmentsenterpriseforcarbon captureandstorage(CCS) g g pp Managegovernmentalinterestsandsupport technologydevelopmentwithintheareaof CCS Promotesdevelopmentoffutureoriented, environmentfriendlyandcostefficientgas powertechnologywithCCS t h l ith CCS
RENEWABLEENERGY NORWAY.PPT
16
Majororganisations(2/2)
EstablishmentofENOVA Purpose Target
Primaryobjectiveistopromotemoreenvironmentallyfriendlyconsumptionandgenerationofenergy Contributetonew,environmentallyfriendlyenergygenerationandconservationequivalentto12TWhby 2010,ofwhich~3TWhshallbethroughwindpower Since2001,Enovahasprovidedfundingfor10windpowerplantswithatotalannualcontractualproduction ofapproximately1.4TWh of approximately 1 4 TWh Minimumrequirementsforfundingincludethefinallegalconcessionfortheprojectandaccesstosufficient gridcapacity
ProjectsFunded
Utility U ili
MWmax MW 3.5 80 40 60
In2009,theNorwegiangovernmentisplanningoninjectingUSD3.4bnintothecountry'srenewable energyvehicleEnova hi l E
RENEWABLEENERGY NORWAY.PPT
17
Governmentinitiatives(1/5)
EstablishmentofEnergy21 In2006,theMinistryofPetroleumandEnergyinitiatedworktodeviseacomprehensivestrategyforresearch anddevelopmentoftechnologywithintheenergysector and development of technology within the energy sector
Recommendationsforhydro power
Recommendationsforwind power
Recommendationsfor infrastructureandR&D
Hydropower is expected to Hydropowerisexpectedto continuetoassumea centralroleinthepower marketofthefuture Needforamore liberalized,nonregulated powerproductionregime Greaterinteractionwith theEuropeanpower market
Reducinginvestmentand operationalcosts Environmentalimpact considerationsofland basedwindpower production Researchrequiredon offshorewindpower generationregularity, operationalcostsand access
Establishmentofstrong infrastructureforpower infrastructure for power transmissionandhooking uptomainlandgrids DoublingoftheR&D provisionbytheMinistry ofPetroleumandEnergy in09 Increasepublic investmentsofNOK400 mn/yrwhichisexpectedto mn/yr which is expected to attract~NOK2.4bn
RENEWABLEENERGY NORWAY.PPT
18
Governmentinitiatives(2/5)
IntroductionoftheOffshoreRenewableEnergyAct Providearegulatoryframeworkforoffshorewindplantsinorderthatenergy infrastructureisplanned,constructedandoperatedunderconsiderationsofenergy infrastructure is planned constructed and operated under considerations of energy supply,environment,security,fisheries,seatransportandotherinterests
Purpose
KeyAspects
Needforthedevelopmentofinfrastructureforoffshoreenergyproduction Includesregulationsontheprocessofapplyingforconcessions,establishment,operation andclosedownofoffshorerenewableenergyproductionandoffshoregrid Regulationsoncompensationtofishermen,similartotheregulationsinthepetroleum sectorhasbeenproposed Address issues related to security and working environment area fees system operation Addressissuesrelatedtosecurityandworkingenvironment,areafees,systemoperation andexportandimportofelectricalenergy Establishmentofthreerenewableresearchcenterswhichwillidentifyseaareassuitable forfuturedevelopmentofoffshorewindpower Streamliningtheapplicationprocessthusmakingtheprocedureforentryefficient Feasibilitystudieswillallowexistingandnewplayerstocapitalizeontheopportunities thatwillariseoutofknowledgesharing Usingtheamplehydroelectricalresourcestowardsgeneratingandexportingpowertothe Europeanmarket E k
Impact
RENEWABLEENERGY NORWAY.PPT
19
Governmentinitiatives(3/5)
RENERGIProgramme CleanEnergyfortheFuture Primary objective Providearegulatoryframeworkforoffshorewindplantsinorderthatenergy infrastructureisplanned,constructedandoperatedunderconsiderationsofenergy infrastructure is planned constructed and operated under considerations of energy supply,environment,security,fisheries,seatransportandotherinterests Newtechnologies,systemsandsolutionsthatfacilitateenergyrestructuringbyimproving theefficiencyofenergyproduction,transmissionanduse,makingmoreenergyavailable th ffi i f d ti t i i d ki il bl andimprovingsystemsecurityandflexibility. Environmentfriendlyenergysystemsthatreduceemissionsofgreenhousegasesand otherairpollutants,improvelanduse,etc. New internationally competitive goods and services related to the energy sector New,internationallycompetitivegoodsandservicesrelatedtotheenergysector Knowledgeandanalysisasthebasisfortheauthoritiesandindustryslongtermenergy strategies,publicdebateanddesignofpublicpolicyinstruments. Internationallycompetitiveresearchcommunitiesinhighpriorityfieldsthatcollaborate extensivelywithinternationalspecialistenvironmentsandvarioustypesofusers extensively with international specialist environments and various types of users
USDmn
40 22.3 20 0 21.3 23.1 25.7
Secondary Objectives
BudgetfortheProgramme
38.9 27.0
2004
2005
2006
2007
2008
2009
RENEWABLEENERGY NORWAY.PPT
20
Governmentinitiatives(4/5)
OtherInitiatives CarbonNeutral Policy Thegovernmentisplanningtoachievingcarbonneutralityby2030andisfirsttargetingto reduceitsemissionsbyupto17mntonsby2020 T Towardsthisendeavor,thegovernmentplansonincreasingitsinvestmentonrenewableenergy d thi d th t l i i it i t t bl researchfourfoldsin2009 ThecentrepartyofNorway,Senterpartiet,hasforwardedthatthegovernmentshouldallocate USD915mn USD1,220mnperyeartobuildupawindpowersector NorwegianGovernmentplansoninvestingUSD14mnintodemonstrationprojectstopromote offshorewindenergy,whichithopeswillhelpcutcarbondioxideemissionsby30%by2020 comparedto1990 Entered the Renewable Energy and Energy Efficiency Partnership (REEEP) which an international EnteredtheRenewableEnergyandEnergyEfficiencyPartnership(REEEP)whichaninternational allianceofgovernments,NGOsandbusinessesthatpromotesrenewableenergyandenergy efficienttechnology In2007,NorwegianGovernmentplannedoninvestingUSD5mnonspecificprojectsincluding waterpumpsrunonsolarpowertechnologyandinsulationofhomesinpoorareastowards increasingtheuseofcleanenergy i i th f l NorwayisproposingtoallocateuptoUSD3bnforgreeninvestmentsthroughanewinvestment programmefromitsGovernmentPensionFund This amount will be invested over a period of 5 years and will look at means of avoiding negative Thisamountwillbeinvestedoveraperiodof5yearsandwilllookatmeansofavoidingnegative economicrepercussionsofclimatechange
Investments
Energy Partnership
RENEWABLEENERGY NORWAY.PPT
21
Governmentinitiatives(5/5)
InternationalCooperation
Agreement/Association EuropeanEconomicArea E E i A (EEA)Agreement Competitivenessand InnovationProgramme(CIP) NordicCooperation Highlights C Cameintoeffecton1st J i t ff t 1 January2004underwhichtheEuropeanFreeTradeAreacountrieswill 2004 d hi h th E F T d A ti ill cooperateonissuesincludingprovisionsforelectricityandgasmarkets,electricityfrom renewablesourceswellasenergyefficiencyinbuildingsandofcertainproducts CIPispartoftheEEAAgreementandisexpectedtocontinuebetween20072013 Norwaycontributesfinanciallyandalsohastheopportunitytoapplyforprojectsupportinthe areasofenergyefficiencyandrenewableenergy Ledtoextensivecollaborationbetweenthesystemoperatornetworksineachcountry Collaborationissoughtafterintheelectricitymarket,sustainableenergy,energytechnologies, andregionalcooperationwithneighboringareas Nordic regulators through NordREG and the Nordic system operators are important players in NordicregulatorsthroughNordREGandtheNordicsystemoperatorsareimportantplayersin theworkofdevelopingafunctioningNordicelectricitymarket. LedtotheBalticSeaRegionEnergyCooperation(BASREC) CountriesinthisassociationincludeRussia,Germany,Poland,Estonia,Latvia,Lithuania, Sweden,Finland,Denmark,IcelandandNorway CreatedaframeworkforpanEuropeanenergycooperationwithanobjectivetopromotelong termcooperationbasedontheprinciplesofthemarketeconomyandnondiscrimination
Balticcooperation
EuropeanEnergyCharter
OtherAssociationsinclude:SAVE,ALTENER,cooperationwithRussiaandtheBarentsAreaandInternationalEnergyAgency
RENEWABLEENERGY NORWAY.PPT
22
RENEWABLEENERGY NORWAY.PPT
23
Legalframeworkforhydropowerdevelopment
TheIndustrialLicensingAct
TheWatercourseRegulationAct
TheWaterResourcesAct
Inordertouseawaterfall whichisnotownedbythe State,forenergy State for energy generation,alicenseis needed Licenseisprocuredunder thisActifitisassumed thatthewaterfallcan h h f ll provideanoutput exceeding4,000natural horsepowerafter regulation g Itincludesmandatory termsrelatingtolicense feesandtheobligatory saleofpowertothe municipalitiesinwhichthe municipalities in which the waterfallsaresituated
Purposeistoensurethat riversystemsand groundwaterareusedand groundwater are used and managedinaccordance withtheinterestsof society Maincriterionforgiving permissionforworksin i i f k i watercoursesisthattheir benefitsoutweighthe damagesorinconvenience topublicandprivate p p interestsintheriveror catchmentsarea Somemicroandmini powerstationshave negligibleimpactanddo negligible impact and do notneedalicense
24
RENEWABLEENERGY NORWAY.PPT
Administrativeproceduresinvolvedinlicensinghydropower developments
Developer
Notification Applicationpursuant toWatercourse RegulationAct/ EnergyActandEnvironment ImpactAssessment(EIA) I tA t (EIA) Asapplic.watercourse license
MinistryNVE
Processing
EIAprogramme Determined
OtherAuthorities
Publicconsultation
Publicconsultation
Publicconsultation
GeneralPublic
RENEWABLEENERGY NORWAY.PPT
25
Legalframeworkforpowerlines,gasfiredstations,windfarms, etc.
TheEnergyAct ThismadeNorwaythefirstcountryintheworldtocreatealiberalizedmarketframework, givingitselectricityconsumersthefreedomtochoosetheirpowersupplier
Purpose
Enforcing authorities
RENEWABLEENERGY NORWAY.PPT
26
Administrativeproceduresforlicensingelectricalinstallations
Developer
Applicationpursuant totheEnergyAct Licenseissued pursuanttothe EnergyAct
MinistryNVE
Appealprocessing byNVE
OtherAuthorities
GeneralPublic
RENEWABLEENERGY NORWAY.PPT
27
RENEWABLEENERGY NORWAY.PPT
28
StatkraftistheleadingplayerinEuropeinpowergeneration throughrenewablesources
Overview
AlargenumberofplayerswithStatkraft dominatingthedomesticmarket Playerschoosingbetween2strategies
Diversifiedproductionbyencompassingawide varietyofenergymarkets g p gy Focussingonspecificrenewableenergymarkets namelyhydro,wind,solarorbiofuel
MarketShare(08)
Statkraft ECOEnergi NorskHydro Norsk Hydro
27.7% %
33.8%
InstalledCapacityofMajorPlayers(08)
0 2,000 4,000 6,000 8,000 10,000 12,000 10,670 2,871 1,828 1,728 1,655 1,558 800 757 504 491
MeanAnnualProduction(08)
0 5 10 15 20 25 30 35 40 45
Statkraft ECOEnergi NorskHydro AgderEnergi A d E i BKK LyseEnergi NordTrndelag Elektrisitetsverk EidsivaEnergi Hafslund Sunnhordland Kraftlag
MW Statkraft ECOEnergi NorskHydro AgderEnergi BKK LyseEnergi NordTrndelag Elektrisitetsverk EidsivaEnergi Hafslund Sunnhordland Kraftlag
10.0 8.5
7.4 7.0 5.9 3.5 3.1 2.7 1.6
TWh 43.6
RENEWABLEENERGY NORWAY.PPT
29
PlayersinMultipleEnergyMarkets(1/6)
CompanySnapshot:Statkraft
CorporateInformation
Headquarters Founded Areaof Expertise KeyPeople Key People Oslo 1992 Generateshydropower,windpower,gas poweranddistrictheating ArvidGrundekjon(Chairman) Arvid Grundekjon (Chairman) BardMikkelsen(CEO)
FinancialPerformance
Revenue USDbn
6 4.5 4 2 0 2.5 3.0 2.0 1.0 0.5 0.0
Revenue Profit/Loss
Profit USDbn
1.5
2006
2007
2008
BusinessHighlights
2009(upto Q2)
Operates149hydropowerplantsand1gaspowerplant,3windfarms,6districtheatingplantsinNorway Plansondevelopingfacilitiesfor1.0TWhofnewhydropowercapacityinNorwayand3.5TWhoutsideNorwayby 2015 Openeda2.9 MWRodberghydroelectricplantinBuskerudCounty,Norwaywhichisestimatedtogenerate15.5 Opened a 2.9MW Rodberg hydroelectric plant in Buskerud County, Norway which is estimated to generate 15.5 GWh/yearonanaverage Intheperiod20092011,itisestimatedthatthecompanywillinvest~USD76.3mninavariousR&Dprogrammes, projectsandschemes.Itisalreadyassociatedwith5researchcenters Plansoninvesting~USD654mninwindfarmprojectsinScotland
RENEWABLEENERGY NORWAY.PPT
30
PlayersinMultipleEnergyMarkets(2/6)
CompanySnapshot:StatoilHydro
CorporateInformation
Headquarters Founded Areaof Expertise Financials KeyPeople Stavanger 2007(StatoilandHydromerged) Wind,solar,tidal,waveandgeothermal energygeneration Revenue USD118mn( 08);NetProfit Revenue USD 118 mn (08); Net Profit USD7.7mn(08) HelgeLund(CEO)
BusinessHighlights
Majorassociations
Installeda2.3MWfloatingoffshorewindturbine12 kilometerssoutheastoftheNorwegianislandofKarmoy. PartneredwithHywindwhodesignedtheturbine InvestedinsolarpowercompanyBrightsource Part owner of Pelamis, setup a 2.25MW Aguqadoura PartownerofPelamis,set upa2.25MWAguqadoura facilityforwaveenergygeneration Installedafullyoperational300kWtidalprototypein Finnmark,northernNorway
CompanySnapshot:AgderEnergi p y p g g
CorporateInformation
Headquarters Founded Areaof Expertise Financials KeyPeople Kristiansand 2000 Generationthroughhydroandwindenergy Revenue USD1.3bn(08);NetProfit USD 198mn(08) EivindKrokmo(President)
BusinessHighlights
Itcurrentlyhosts31whollyownedand16partly ownedpowerstationswithanaverageannual productionof7.7TWh d ti f 7 7 TWh EnteredintoajointventurewithStatkrafttowards developingnewlandbasedwindparkprojectsin Norway
27 projects under planning 27projectsunderplanning Capacityof1500MWby2015
RENEWABLEENERGY NORWAY.PPT
31
PlayersinMultipleEnergyMarkets(3/6)
CompanySnapshot:NorskHydro
CorporateInformation
Headquarters Founded Areaof Expertise Financials KeyPeople Oslo 1905 Primarymetal,metalmarkets,rolled products,extrudedproducts,energy Revenue USD15.9bn( 08);Profit USD Revenue USD 15 9 bn (08); Profit USD 575.7mn(08) TerjeVareberg(Chairman)
BusinessHighlights
In2008,itproduced~11.4TWhofrenewable hydroelectricpower Operates17hydroelectricfacilities Investinginsolarenergyincooperationwithpartner companies InvestedUSD9.2mninAscentSolarTechnologies InvestedUSD24.5mninNorsun
CompanySnapshot:Lyse p y p y
CorporateInformation
Headquarters Founded Areaof Expertise Financials KeyPeople Stavanger 1999 Constructionandoperationof infrastructure,productionandsaleofenergy andtelecomproducts N.A. LarsAndersMyhre(Chairman)
BusinessHighlights
Plansondevelopinganoffshorewindpowerplantin theNorthSeawhichisexpectedtogenerate4.5TW annually ll Productionofhydropowerisplannedtobeincreased from5.6TWhbyafurther250GWhbefore2013 Itplansonincreasingcapacityby~1TWhthrough mainlandbasedwindpower mainlandbased wind power
RENEWABLEENERGY NORWAY.PPT
32
PlayersinMultipleEnergyMarkets(4/6)
CompanySnapshot:NordTrondelagElektrisitetsverk
CorporateInformation
Headquarters Founded Areaof Expertise Financials KeyPeople Steinkjer 1919 Operateswindturbinesinareasexposedto harshweatherconditions Revenue USD611.7mn( 08);Profit USD Revenue USD 611 7mn (08); Profit USD 40.1mn(08) TorbjornR.Skjerve(Chairman)
BusinessHighlights
Ithasanannualproductioncapacityof3345GWh Operates24whollyownedand2partlyowned hydroelectricpowerstations Developed2windfarmsintheNroy
PlansondevelopingEuropeslargestwindpowerparkin YtreVikna
ThroughitspartnershipwithBioVarme,itplanson engaginginthedevelopmentofbioenergy
CompanySnapshot:EidsivaEnergi p y p g
CorporateInformation
Headquarters Founded Areaof Expertise Financials KeyPeople Key People Hamar 2000 Productionofenergythroughbiomassand hydropower N.A. OlaMorkvedRinnan(CEO) Ola Morkved Rinnan (CEO)
BusinessHighlights
Districtheating
Plansondevelopingdistrictheatingfacilitygenerating200 GWhofenergyatatotalinvestmentofUSD57.2mnwhich GWh of energ at a total in estment of USD 57 2 mn hich isexpectedtoreachcompletionby2011 HeatingnetworkinHamar,Kongsvinger,Trysilisunder expansion
Hydropower
Generates3.2TWhperyearin20whollyownedand14 partiallyownedproductionfacilities
RENEWABLEENERGY NORWAY.PPT
33
PlayersinMultipleEnergyMarkets(5/6)
CompanySnapshot:Hafslund
CorporateInformation
Headquarters Founded Areaof Expertise Financials KeyPeople Oslo 1898 Hydropowerproducer,largestdistrict heatingsupplierinNorway Revenue USD1.9bn( 08);Profit USD Revenue USD 1 9 bn (08); Profit USD 111.9mn(08) ChristianBrinch(Chairman)
BusinessHighlights
Meanannualgenerationtotals2,949GWh Provides~1TWhofenergyforheating Developedabiofuelfacility,BioElFredrikstad. Expectedtotalannualproductionis140GWh
CompanySnapshot:SunnhordlandKraftlag p y p g
CorporateInformation
Headquarters Founded Areaof Expertise Financials KeyPeople Stord 1946 Electricity,production,transmissionand wholesale Revenue USD120.4(07);Profit USD 45.7mn(07) AtleNeteland(Chairman)
BusinessHighlights
Ownsandoperatesatotalof8powerstationsin Kvinnherad,FusaandStordwithameanannual productionmakesup1625GWh d ti k 1625 GWh WorkingonhydropowerprojectsinRyfylke Haugalandet,Hardanger,Hardangerfjord Plansonworkingonmajorwindpowerprojectsin thewesterncoast the western coast
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PlayersinMultipleEnergyMarkets(6/6)
CompanySnapshot:DongEnergy
CorporateInformation
Headquarters Founded Areaof Expertise Financials KeyPeople Fredericia 2006 Powergeneration,salesanddistribution Revenue USD12.6bn( 08);Profit USD1 Revenue USD 12 6 bn (08); Profit USD 1 bn(08) AndersEldrup(CEO)
BusinessHighlights
Plansonbuildingandoperatinganonshorewind farminthenorthernNorwegianmunicipalitybeltof Narvik
TheNygardsfjell2plantisexpectedtohaveacapacityof 25.333MW Expected to be developed through a JV with Norwegian ExpectedtobedevelopedthroughaJVwithNorwegian hydropowercompanyNordkraft Totalinvestmentrequiredintheprojectisestimatedat USD57.7mnofwhichUSD32.5mnwillbefinancedby Enova
CompanySnapshot:TromsKraft p y p
CorporateInformation
Headquarters Founded Areaof Expertise Financials KeyPeople Key People Troms N.A. NA Windpowergenerationanddistrictheating N.A. RobertHermanse(Chairman) Robert Hermanse (Chairman)
BusinessHighlights
Ownsandoperateswaterpowerfrom12power stations Plansondevelopinga2.5TWhoffshorewindfarm with250turbinesintheVannoyaarea
Theturbinesareexpectedtohaveatowerheightofupto 110mandrotorswithadiameterofupto130m CostfortheprojectisestimatedatUSD2.92bn p j Theprojectmayalsocometoincludewavepower
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PlayersinHydroEnergyMarket(1/2)
CompanySnapshot:ECOEnergi
CorporateInformation
Headquarters Founded Areaof Expertise KeyPeople Oslo 2001(VattenfallacquiredOsloEnergy, companiespreviousbrand) Ownership,development,operationand managementofhydropower ErikNygaard(Chairman) Oddoygarden(MD)
FinancialPerformance
Revenue USDmn
800 600 400 200 0 357.4 390.6 479.4
Revenue Profit/Loss
Profit USDmn
665.7 250 200 150 100 50 0
BusinessHighlights
2005
2006
2007
2008
Ithasanaverageannualproductionof9.7TWh Ownsandoperatesmorethan70powerplantsthroughoutsouthernNorway
LargestproductionplantsareinHallingdal,Aurland,andDarkFossSolbergfossinAskim
The company recently upgraded its Upper Vinstra Power Plant towards increasing its generation capacity ThecompanyrecentlyupgradeditsUpperVinstraPowerPlanttowardsincreasingitsgenerationcapacity Plansondeveloping1000GWhofnewrenewablepowerproductionby2015 DevelopinganewStolsvatnDamexpectedtobecompletedin2009 TheirLyaPowerPlantinHallingdalwascommissionedinearly2008
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PlayersinHydroEnergyMarket(2/2)
CompanySnapshot:BKK
CorporateInformation
Headquarters Founded Areaof Expertise Financials KeyPeople Bergen 1920 Production,wholesale,andtransmissionof electricalpower Revenue USD737.7mn( 08);Profit USD Revenue USD 737 7 mn (08); Profit USD 137.1mn(08) AtleNeteland(CEO)
BusinessHighlights
LeadingpowercompanyinWesternNorway Operates30hydroelectricpowerplants Plansondevelopingagasfiredpowerplantat Mongstadtowardsmeetingthegrowingenergy needs
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PlayersinWindEnergyMarket(1/2)
CompanySnapshot:Sway
CorporateInformation
Headquarters Founded Areaof Expertise Financials KeyPeople Radal 2001 Developmentofwindturbines N.A. NA EysteinBorgen(CEO)
BusinessHighlights
Itisprimarilyfocusingondevelopingoffshorewind technologyinNorway Plansoncreatingtechnologicallyadvancedwindmills thatcanfloatonstrongwavesandtidalcurrents
Itisexpectedtheone5MWprototypetobeoperationalin 2010 Aninvestmentof~USD42.9mninrealizingtheprototype isestimated
CompanySnapshot:Scanwind p y p
CorporateInformation
Headquarters Founded Areaof Expertise Financials KeyPeople Key People Trondheim 1999 Developerandsupplierofwindturbines N.A. IngeS.Garshol(MD) Inge S Garshol (MD)
BusinessHighlights
RecentlycompleteditsprojectHundhammerfjell under3phases
PhaseI:Erecteda3MWturbinewithadirectlydriven h d b h d l d generatorinMar2003 PhaseII:Installationofa3MWturbinewithastandard doublefedslipringasynchronousgeneratorinOct2004 PhaseIII:Installing13turbinesconsistingof3.5MW directlydrivengenerators
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PlayersinWindEnergyMarket(2/2)
CompanySnapshot:NorWind
CorporateInformation
Headquarters Founded Areaof Expertise Financials KeyPeople Bergen 2007 Designandinstallationoffixedoffshore foundationsandinstallationofturbines N.A. NA IngeK.Hansen(Chairman)
BusinessHighlights
Focusessolelyonoffshorewindtechnology Ithasmadestrategicinvestmentsincompanieswith growingtechnologies NorWindacquireda33.4%ownershippositionin OWECTower(thusfar,theonlytechnology installedonmorethan30meterswaterdepth EnteredintoaJVwithGriegGroupforthe developmentoftechnologicallyadvancedoffshore windturbines
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KeyDevelopments
Date Aug2009 Development GEEnergyacquiredSwedishrenewableenergygroupMorphicTechnologiesNorwegiansubsidiary ScanwindASatUSD18.6mnloss.ThiswasprimarilyastrategicmovewithMorphicplanningtofocuson itscorefuelcellbusiness. it f l ll b i AlpiqHolding,aSwisselectriccompany,acquired13.04%stakeinNorwegianrenewableenergyplants builderConceptorRenewableEnergyandTechnology.ThiswillallowAlpiqtoexpandtheiroperationsinto theScandinaviancountriesandcapitalizeontheopportunitiesavailable. HavgulCleanEnergyplansondevelopingawindparkonthehillsaroundTonstadandsouthtoKvinesdal Havgul Clean Energy plans on developing a wind park on the hills around Tonstad and south to Kvinesdal inSirdalmunicipalityofsouthwestNorway. NorskMiljEnergiSrplansondevelopingandoperatinga31turbine,102MWwindfarmatLista,inthe communeofFarsund.Park'soutputhasbeenestimatedat280GWh/yr. InstituteforEnergyTechnologydevelopedalaboratoryforsolarenergyatKjellar.Theyplanonworking Institute for Energy Technology developed a laboratory for solar energy at Kjellar They plan on working withthegovernmentaswellasindustrialplayerstowardscreatingtechnologicallysuperiorsolarproducts allowingthemtocompeteattheinternationalmarket. Angelwinddevelopedastateoftheartgearboxforwindturbineswhichwillleadtoalargescale reductionintheweightofthenacelleinthewindturbine,makingmaintenanceandrepairseasier. g , g p NorskeSkogestablishedXynergoplansonsettingup12plantsfortheproductionofbiodiesel basedon forestrywaste.Thefirstplanthasbeencommissionedin2015.Thisisexpectedtofacilitate15%of Norway'stotaldieseloutputforlandtransportation.
Jun2009
Nov2008 Sept2008
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AppendixI:Majorhydropowerstations
LargestHydropowerPowerStationsinNorway(2008)
Powerstation Kvilldal Tonstad AurlandI Saurdalm SySima Rana LangSima Tokke Tyin County Rogaland g VestAgder SognogFjordane Rogaland Hordaland Nordland Hordaland Telemark SognogFjordane MaxCapacity(MW) 1240 960 675 640 620 500 500 430 374 MeanAnnualProductionGWh/year 3517 4169 2407 1291 2075 2123 1329 2221 1398
HydropowerstationsinoperationinNorway(2008)
MW Quantity Totaloutput,MW LargestHydropowerPowerStationsinNorway(2008) 0 0.1 0.1 1 1 10 10 10 100 100 201 231 368 253 78 8 110 1247 9223 9 223 18440 MeanannualproductionGWh/year 41 490 5640 41348 41 348 74345 43
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AppendixII:Majorwaterfallsandgrowthinoffshorewind powergenerationpotential
Norwayshighestwaterfalls(heightcalculatedbyvirtuallyverticalhead)
Waterfall Tyssestrengen T t Ringdalsfossen Skykkjedalsfossen Vettisfossen Austerkrokfossen SreMardalsfossen StorhoggfosseniUlla Vedalsfossen Feigefossen Glutrefossen Height(m) 300 300 300 275 256 250 210 200 200 171 Built B ilt Built Built Permanentlyprotected Built Built Built Permanentlyprotected Permanently protected Permanentlyprotected Partlybuilt Phase Licensed/protected 1964TyssefaldeneA/S 1964 T f ld A/S 1964TyssefaldeneA/S 1973Statkraft 1923NaturalEnvironmentProtectionAct 1966ElektrokjemiskA/S 1973Statkraft 1973Statkraft 1980ProtectionplanII 1980 Protection plan II 1986ProtectionplanIII 1973Statkraft
GrowthinOffshorewindpowergenerationpotential p g p
Project
LFloatingHywind Havsul1 Siragrunnen Lista OffKarmoy OffMreandRmsdal SouthofStavanger SouthofLista
Location
Capacity
3 350 200 1000
Operational
2009 2015 2015 2015
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AppendixIII:Windpowerprojectssanctionedbythe government
WindPowerProjectssanctionedbythegovernmentin2008
Project
ANDMYRAN BESSAKERFJELLET,SrTrndelag FAKKEN,Troms BESSAKERFJELLET,SrTrndelag HUNDHAMMERFJELLET 3,NordSr Trndelag HUNDHAMMERFJELLET3, Nord SrTrndelag HGJREN,Rogaland KARMY(OFFSHORE),Rogaland KVALVG,Hordaland KVITFJELL,Troms KVITFJELL Troms VestAgder MIDTFJELLET,Hordaland NYGRDSFJELLET STAGE2,Nordland SELBJRNHordaland SELBJRN Hordaland SKALLHALSEN,Finnmark STOLMEN,Hordaland STOREKALSY,Hordaland TYSVR,Rogaland TYSVR Rogaland YTREVIKNA,NordTrndelag
Power(MW)
160 57 60 90 51 73 3 6 200 102 150 40 40 65 6 9 39 249
AnnualProduction(GWh/year)
620 150 200 200 160 260 NA 1 660 280 450 120 110 190 1 1 110 870
DateofLicense
Dec2006 Nov2004 Dec2006 Nov2004 Feb2002 Feb 2002 Sep2004 Sep2006 Feb2007 Feb2002 Feb 2002 Dec2006 Feb2007 Dec2006 Feb2007 F b 2007 Oct2004 Feb2007 Feb2007 Dec2006 Dec 2006 Oct2004
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AppendixIV:Realizedwindenergyprojects
RealizedWindEnergyProjects
Project
AndyaEnergiAS y g Titran,Frya Kvalnes,Andya Hovden,Vesterlen UtsiraI&II Sandhaugen ViknaI&II Fjeldskr Hary MehukenI NygrdsfjelletI Valsnesetvindkraftverk Kjllefjordvindkraftverk Kjllefjord vindkraftverk Havygavlen Hundhammarfjellet Eldsfjellet,Hitra Bessakerfjellet SmlaI&II
Company
NordmreEnergiverkAS g TrnderEnergiKraftAS AndyaEnergiAS VesterlskraftProduksjonAS StatoilHydro y NorskMiljkraftFoUAS NTE AgderEnergiProduksjon SandyEnergiAS Sandy Energi AS KvalheimKraft NordkraftvindAS TrnderEnergiKraftAS KjllefjordVindAS(Statkraft) Kjllefjord Vind AS (Statkraft) ArcticWind(StatoilHydro) NTE HitraVindAS(Statkraft) TrnderEnergiKraftAS TrnderEnergi Kraft AS SmlavindAS(Statkraft)
Capacity(MW)
0.3 0.4 0.4 0.4 1.2 1.5 1.8 3.75 3.75 4.0 6.90 11.50 39.10 40.00 50.75 55.20 57.50 150.4
OperationalSince
1989 1989 1991 1991 2003 2004 1991 1998 1999 2001 2006 2006 2006 2002 1998 2004 2007 2002
No.ofTurbines
1 1 1 1 2 1 4 5 5 5 3 5 17 16 16 24 25 20
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