“ Høringssvar – endringer i energiloven §4-2 (utenlandsforbindelser)”
Vattenfall welcomes for the opportunity to comment on the proposal. Being a major European energy company we are active in the electricity market both in the Nordic and in the UK. We are also one of the owners of the NorthConnect project.
Vattenfall's business strategy is to enable fossil free living within one generation. To this end we work across the whole value chain investing in new renewable production, electricity distribution networks and charging solutions for e-vehicles. In addition, we have entered into a number of industry partnerships such as HYBRIT to electrify industrial processes, which reduces carbon dioxide emissions. We are convinced that a good thing for the climate is good and sustainable business for us.
NorthConnect has a logical place in this context. Transmission capacity to and from the Nordic electricity system strengthens both the competitiveness and sustainability of Nordic electricity production by contributing to other countries climate targets, while at the same time creating robustness and risk diversification for our weather-dependent electricity system.
The proposed amendment to the Norwegian Energy Act means that a license to operate an interconnector to and from Norway can only be granted to the system operator (Statnett) or a company over which the system operator has a decisive influence. This legal context has some similarities with the Swedish legislation, which we naturally have experience from.
With this consultation response, we wish highlight what values for the Nordic society and the global climate that are at risk of being lost if this change is implemented uncritically. We believe that there is room for a design of the regulatory frameworks in the Nordic region that would ensure both a stable development of electricity supply, while at the same time realize the commercial potential in the Nordic energy sector. A potential that would also propel the European transformation into a climate sustainable society.
Climate change is our biggest challenge
The exchange of renewable energy between countries and regions is an important tool for reducing greenhouse gas emissions. It is a direct facilitator of European climate goals. Around us, renewable energy is being expanded at an unprecedented pace and the electrification of our societies has already begun. Our Nordic region has an opportunity to make a difference. Interconnectors create economic wealth both in surplus and in deficit scenarios, it is a perfect strategy in a transition that will continue in decades to come.
Interconnectors is a good deal for Norway, a good deal for the Nordic region, a good deal for the climate – and over time a good deal for Nordic consumers
Value creation in the power industry generates revenues for the Nordic countries. Transmission capacity create stable conditions for electricity producers. Over time this stability will be a prerequisite for maintenance and re-investments in the Nordic hydro power capacity, which in the end will help the energy-intensive Nordic industry to drive down its emissions.
A larger market is a necessity to maintain security of supply and long term value creation
Interconnectors also mean that the connected regions can act as back-up for each other. The summer of 2020 has clearly shown how sensitive the Nordic electricity system is to reductions in transmission capacity, as maintenance and re-investments, primarily in Sweden, led to a large lock-in of Nordic hydro power, not least in Norway. In addition to weak financial conditions and less climate benefit, this also meant reduced security of supply.
Too low electricity prices will not only erode the economy of hydropower producers, it will also in the long run imply postponed and avoided investments that inevitably will affect the availability of the Nordic electricity production. In such a scenario it would pose a threat to both security of supply and quality of electricity supply, both are prerequisite for Nordic electricity-intensive industry that create employment in wealth in the Nordic countries.
Sufficient interconnector capacity is a key enabler – private initiatives support a climate neutral society
We are convinced that it must be profitable to do the right thing for the climate. Business opportunities will be a necessary driver for the transition to be successful. With its unique natural resource base, the Nordic countries and Norway have developed a globally competitive energy-intensive industry. In order for it to be sustainable, the energy supply must also be sustainable. Today's energy prices in 2020 show the importance of having a stable and large market for energy production. Sufficient speed and volume in the development of new interconnectors are crucial in order to reach European climate neutrality by 2050 and to reach this end, private initiatives can make an active contributions in the best interest of our society.
Cecilia Hellner Public & Regulatory Affairs
Vattenfall welcomes for the opportunity to comment on the proposal. Being a major European energy company we are active in the electricity market both in the Nordic and in the UK. We are also one of the owners of the NorthConnect project.
Vattenfall's business strategy is to enable fossil free living within one generation. To this end we work across the whole value chain investing in new renewable production, electricity distribution networks and charging solutions for e-vehicles. In addition, we have entered into a number of industry partnerships such as HYBRIT to electrify industrial processes, which reduces carbon dioxide emissions. We are convinced that a good thing for the climate is good and sustainable business for us.
NorthConnect has a logical place in this context. Transmission capacity to and from the Nordic electricity system strengthens both the competitiveness and sustainability of Nordic electricity production by contributing to other countries climate targets, while at the same time creating robustness and risk diversification for our weather-dependent electricity system.
The proposed amendment to the Norwegian Energy Act means that a license to operate an interconnector to and from Norway can only be granted to the system operator (Statnett) or a company over which the system operator has a decisive influence. This legal context has some similarities with the Swedish legislation, which we naturally have experience from.
With this consultation response, we wish highlight what values for the Nordic society and the global climate that are at risk of being lost if this change is implemented uncritically. We believe that there is room for a design of the regulatory frameworks in the Nordic region that would ensure both a stable development of electricity supply, while at the same time realize the commercial potential in the Nordic energy sector. A potential that would also propel the European transformation into a climate sustainable society.
Climate change is our biggest challenge
The exchange of renewable energy between countries and regions is an important tool for reducing greenhouse gas emissions. It is a direct facilitator of European climate goals. Around us, renewable energy is being expanded at an unprecedented pace and the electrification of our societies has already begun. Our Nordic region has an opportunity to make a difference. Interconnectors create economic wealth both in surplus and in deficit scenarios, it is a perfect strategy in a transition that will continue in decades to come.
Interconnectors is a good deal for Norway, a good deal for the Nordic region, a good deal for the climate – and over time a good deal for Nordic consumers
Value creation in the power industry generates revenues for the Nordic countries. Transmission capacity create stable conditions for electricity producers. Over time this stability will be a prerequisite for maintenance and re-investments in the Nordic hydro power capacity, which in the end will help the energy-intensive Nordic industry to drive down its emissions.
A larger market is a necessity to maintain security of supply and long term value creation
Interconnectors also mean that the connected regions can act as back-up for each other. The summer of 2020 has clearly shown how sensitive the Nordic electricity system is to reductions in transmission capacity, as maintenance and re-investments, primarily in Sweden, led to a large lock-in of Nordic hydro power, not least in Norway. In addition to weak financial conditions and less climate benefit, this also meant reduced security of supply.
Too low electricity prices will not only erode the economy of hydropower producers, it will also in the long run imply postponed and avoided investments that inevitably will affect the availability of the Nordic electricity production. In such a scenario it would pose a threat to both security of supply and quality of electricity supply, both are prerequisite for Nordic electricity-intensive industry that create employment in wealth in the Nordic countries.
Sufficient interconnector capacity is a key enabler – private initiatives support a climate neutral society
We are convinced that it must be profitable to do the right thing for the climate. Business opportunities will be a necessary driver for the transition to be successful. With its unique natural resource base, the Nordic countries and Norway have developed a globally competitive energy-intensive industry. In order for it to be sustainable, the energy supply must also be sustainable. Today's energy prices in 2020 show the importance of having a stable and large market for energy production. Sufficient speed and volume in the development of new interconnectors are crucial in order to reach European climate neutrality by 2050 and to reach this end, private initiatives can make an active contributions in the best interest of our society.
Cecilia Hellner Public & Regulatory Affairs