MEET THE NEW BOARD CHAIR Widvey's vision

THE LOW-EMISSIONS SCENARIO Optimism People& POWER for the future

NO. 3 2016 | PROVIDING PURE ENERGY

OPENING PARTY Towards a HYDROPOWER&SOCIETY 18 PAGES greener Albania

Powered by water

Hilde Bakken is responsible for operation and maintenance of 169 hydropower plants. In addition to producing pure energy, hydropower means providing jobs in rural areas, developing infrastructure, and sometimes resolving conflicts. PEOPLE&POWER The new Nedre Røssåga is also A MAGAZINE FOR STATKRAFT EMPLOYEES Contents important for Norway. We are ready NO. 3 | 2016 to deliver hydropower in the 29 North for another SUSTAINABILITY Statkraft 50 years. is the first company to offer renewable power with Two victories 4 guarantees of origin in India GREENER TRANSPORT and Brazil. The electric vehicle market and a few challenges and electrification of the transport sector is an excit- 32 ing area for Statkraft. Read HARSH CONDITIONS When about the Grønn Kontakt monsoon rains, huge snow- t was a proud moment for everyone grow and become more attractive. We initiative and other powerful falls and heavy snowmelt news on Page 4. who attended the recent opening of understand the size of the project when are part of your everyday life, it helps if you enjoy your Nedre Røssåga hydropower plant in we see the reservoir, "as big as 2 000 job. Meet Khekh Ram from Nordland in a vast and evocatively lit football fields," he added. 7 Himachal Pradesh in India. Icavern. The plant is not only important World-class engineering work was FEATURE: HYDROPOWER for the 200 personnel who worked on performed on time and on budget. Now AND SOCIETY Hydropower the project, suppliers, representatives the focus has shifted to the construc- development often involves 34 large areas and can affect from neighboring municipalities, and tion of Moglicë (183 MW) as part two of URBAN DEVELOPMENT It humans, animals and is in the cities that future Statkraft itself; the new Nedre Røssåga the Devoll project. At Statkraft we are nature. Read about what green energy systems are is also important for Norway. We are in the midst of a major restructuring happened when several being developed, so cities ready to deliver hydropower in the process in response to changing market residents in Albania had should get more attention North for another 50 years. conditions, fierce competition and to move, what it means in Statkraft, according to As Executive Vice President Hilde higher expectations for cost-efficient to live and work in a the students in this year's Norwegian energy-pro- Bakken said in her speech: "The plant, operations. Two openings within a summer project. ducing municipality, how which has a capacity of 350 MW, is the short space of time gives us a positive the pumped-storage plant largest hydropower plant Statkraft has boost. But we all know there are tough Erzhausen turned crisis into 36 commissioned since Svartisen in 1993." times ahead. To perform in a new opportunity and saved local STATKRAFT SCHOOL In the The upgrading of Norwegian climate we need to train ourselves to jobs, and why hydropower in summer Statkraft launched hydropower plants is significant for think in new ways, to be willing to Glomfjord is so important, the Low Emissions Scenario. a renewable future, and is a direct renew ourselves and to persevere. The not only for the community, What is it and why do we but also for salmon fry. need it? contribution to the green shift. We are Performance Improvement Programme securing the value of clean and flexible will enable us to achieve many victo- energy for future generations. Earlier ries and deliver many new projects we 26 39 this autumn we held a grand opening can be proud of. POWER TALK Thorhild WHICH COUNTRY? Statkraft ceremony for Banja in Albania (73 MW) Statkraft’s Board Chair Thorhild Widvey's appointment has no power plants in the with more than 600 guests including Widvey has strong faith in the com- as new board chair for country, but has an office Statkraft created a stir in with around 40 employees. the country’s prime minister, Edi Rama. pany, and great ambitions for the the Norwegian media. Why? The country is among "A dream has become reality, this future. "Statkraft will drive the green How did she handle it? the lowest producers of is historic," said Prime Minister Rama, shift here in Norway and will become What are her ambitions for renewable energy in Europe. referring to the fact that a sparsely an even stronger voice internationally," the company? Read about Which country are we talking populated area now had the chance to she says. it in Power Talk. about?

Editor-in-chief: Bente E. Engesland Editor: Tone Dahle [email protected] Editorial staff: Tone Dahle, Anders Berg-Hansen, Judith Tranninger, Knut Fjerdingstad, Jenny Bull Tuhus, Heidi Sæther, Ylva Vethe, Eivind Bull-Hansen, Sissel Fantoft English translation: Glen Farley & Brigid McCauley Layout and production: Fete typer + Savant Cover photo: Lars Solbakken Photo page 2: Lars Solbakken BENTE E. ENGESLAND Printing: RK Grafisk AS Circulation: 5000 SENIOR VICE PRESIDENT, CORPORATE COMMUNICATION We appreciate your input and feedback: [email protected]

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The share of renewable power in global BOOST FOR GAS. Statkraft’s gas-fired power plants ANDERSHAW REACHES NEW HEIGHTS energy production was 22 per cent in 2014, in Germany are currently benefiting from temporary A MILESTONE was passed in the construction of Andershaw Wind according to the International Energy higher power prices. Based Farm in September when the first turbine was installed. The wind farm, on current expectations, which is located 50 kilometres south of Glasgow, Scotland, will have % Agency (IEA). Statkraft's Low Emissions 11 wind turbines with a total capacity of 36 MW. Each turbine consists fixed operating costs will be covered this year. of eight components with a total weight of 325 tonnes. The turbines are Scenario estimates this will increase to lifted into place by a main crane with support from two smaller cranes. 55 55 per cent by 2035. Read more on page 36. The wind farm is planned to be operational by the end of the year. Charging up Show of power Grønn Kontakt

THE REHABILITATION AND EXPANSION OF NEDRE RØSSÅGA is NEARLY 30 PER CENT of new car sales in one of the largest hydropower projects in Norway in the Norway are electric cars or rechargeable 2000s. After four years of work, the project is now complete hybrids. Now Statkraft is increasing its and the plant's capacity has been increased from 250 MW commitment to the charging infrastruc- to 350 MW. The increase is equivalent to the consumption of ture for electric cars by increasing its more than 100 000 Norwegian households. ownership share in the charging station "I am proud to lead a highly skilled organisation that has operator Grønn Kontakt and providing implemented such a comprehensive and complex project. 30 PERCENTAGE OF the company with more capital. Grønn Over a million work hours have gone into building the new SPAWNING STOCK IN WATER- Kontakt aims to build 240 new charging power plant," said Hilde Bakken, EVP Power Operations, at COURSE REHABILITATED points in Norway by the end of 2018. the official opening in October. "With Grønn Kontakt's position in Three existing generating units in the old power station the Norwegian market we have a unique have been rehabilitated, and a whole new power station has starting point to participate in a growing been built with one large generating unit. In his speech at the market," says Bjørn Holsen in Statkraft's opening, President and CEO Christian Rynning-Tønnesen strategy department. "Electrification stressed the importance of the project for society. "Projects of the transport sector is in Statkraft's like Røssåga are important for Norway. We safeguard the interest and infrastructure is a relevant long-term production capacity and increase production segment for us." without using new water or requiring new regulations." Statkraft was one of the founders when The project also has positive effects on the environment. 10 000 Grønn Kontakt was established in 2009. The conditions for salmon and sea trout in Røssåga will SPRUCE TREES TO BE The capital increase is happening at the improve, partly because the river regains a salmon-bearing PLANTED IN THE LANDFILLS same time as Statkraft and Agder Energi section that accounts for 30 per cent of the spawning stock are establishing a new owner partnership in the entire watercourse. with equal shareholdings of 41 per cent.

Another 50 years. Nedre Røssåga has been an impor- tant part of recent Norwegian Electrification of the transport sector is history because the decision to build the plant was made in Statkraft's interest and infrastructure is by King Haakon in the 1,3 Council of State on 18 March MILLION HOURS WERE a relevant segment for us. 1949. Now the power plant INVESTED IN THE PROJECT has been equipped for BJØRN HOLSEN, VICE PRESIDENT CORPORATE STRATEGY ­another 50 years. Hilde Bakken Christian Rynning-Tønnesen

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PAVING THE WAY FOR FOSEN MORE THAN FIVE HUNDRED KILOMETRES OF INTERNAL ROADS must be built to develop Roan wind farm, the second-largest in the Fosen project. In September, the company Johs. J. Syltern AS in Fosen was awarded one of the first major construction contracts in the development of Europe's largest onshore wind farm. In October the company completed 13 kilometres of access road to Roan wind farm through difficult terrain. Now the company is in full swing with internal roads, 71 turbine foundations, two transformer station buildings and a service building before the wind turbines are installed in 2018. Statkraft is developing the wind farms on behalf of Fosen Wind. The project is the largest of its kind in Europe. Six large wind farms in Sør-Trøndelag with a total production of 1 000 MW will be built and ­commissioned during 2020.

Official opening. Executive Vice President Steinar Bysveen started up the district heating plant in Moss earlier this autumn.

The district heating plant will reduce harmful greenhouse gas emissions by more than

8 000 tonnes of CO2 per year.

THE DISTRICT HEATING PLANT IN MOSS–RYGGE sions from about 3 000 petrol-powered cars. Milestone was officially opened in September when The development is supported by the public Steinar Bysveen, executive vice president energy conservation agency Enova, and the of Wind Power, Technologies and Strategy total investment is NOK 240 million. for pressed the start button in the facility. "This Traditional energy sources for district magnificent, modern plant makes a signif- heating include waste and bioenergy, but the FEATURE I HYDROPOWER&SOCIETY 18 PAGES Statkraft icant contribution to energy supply in the facility in Moss prioritises surplus heat from region," he says. "It’s also an important part of existing industry in the area. On a yearly Statkraft's commitment to renewable energy." basis, more than 90 per cent of the energy Varme Rygge's mayor Inger-Lise Skartlien praises will come from surplus heat and the remain- Statkraft for excellent cooperation. "The plant ing 10 per cent from bioenergy in the form of Albania's commitment in hydropower contributes not only to the country's energy will be a contributor to the municipality's wood chips, which will be supplied mainly production; it also provides new jobs and modern infrastructure, and lays the foundation further environmental efforts," she says. by the local forestry industry. When fully developed, the district heating The plant can deliver up to 60 GWh of heat for future growth. But when as much as 10 per cent of the land area is affected by the plant will reduce harmful greenhouse gas annually to public and private customers. development, it also affects many people. What does hydropower actually mean at the emissions by more than 8 000 tonnes of CO2 Contracts for more than 30 GWh have been per year, which is equivalent to the emis- signed with customers so far. local level? We visited four small communities in three countries.

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Straight across. Sabri Avdiu was one of those who lost agricultural land when a new road had to cut straight through his plot. "The Devoll project took some of our land, and things looked bad, but now they have given back more in the form of increased productivity from the land we have," says Avdiu.

The path to hydropower

When Alban Avdiu took on the job of liaising on behalf of the locals who would be affected by the hydropower projects in the Devoll Valley, he did not know that his father Sabri would become one of those affected.

Tone K. Dahle Eduard Pagria

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There was a period when it was awkward at family gatherings, to put it like that.

hree years after construction started in 2013, the gatherings, to put it like that," he confides. Gradually, 1 | Basis of existence. Banja hydropower plant in southeast Albania is however, good support schemes were set up, and his Sabri Avdiu lost more now completed. The project in the Devoll Valley father received help to improve his current livelihood. than 3 000 square FACTS metres of land when a Devoll projects is part of a development project with two power The programme helped Avdiu Sr. to better utilise the new road was planned plants,T Banja and Moglicë, with a total output of 256 MW. remaining plot of land so that it now gives the same – or to run straight across in Albania The production of around 700 GWh represents a 17-per- better – yield as before. The solution was to start grow- his property. cent increase in the country's total energy production. ing grapes. Avdiu was allocated seedlings, an irrigation 2 | Increased productivity. With If the catchment areas are included, as much as 10 per system and basic agricultural machinery, which are good help from the POWER PLANTS: Banja, cent of Albania's land areas are located within the project planned to result in better profits and make work on the programme led by Moglicë area in the Devoll Valley. One of the biggest challenges has farm easier. With his new grapevines and his previous the project team that OUTPUT: 256 MW been to gain access to the land that was needed, because stock of fruit trees and other plants, he and his family includes his son Alban many people are affected by the development to some should make a normal living from the farm. Avdiu, (pictured on PRODUCTION: 700 GWh the right), productivity degree. What is more, both he and his neighbours saw the on Sabri's farm has BANJA PLANT MANAGER: benefit of having a permanent road on their side of the increased and work 3 Hans Bolme LOST LIVELIHOODS "The biggest challenge for the local reservoir, something they did not have before. "It has has been simplified. population has been to find ways of replacing the loss created brand new possibilities for communicating with 3 | Impact. CONSTRUCTION PERIOD: Construction of the Banja was completed in of arable land, and consequently, of the livelihoods that the outside world, so all in all it has been a win–win Banja power plant ­September 2016, while depended on it," says Alban Avdiu. He has worked in the situation," says his son. has brought about ­Moglicë will open in 2019. Devoll project as a community liaison since the planning sweeping changes in work began in 2010, and is part of the Environmental and NEW POSSIBILITIES The Devoll project is a BOOT pro- the area. HSE AWARD: The Banja Replacement Social Management team that is implementing the pro- ject, which means that Statkraft builds, owns, operates Roads Project received the gramme that offers local inhabitants additional support and transfers the project during the licence period. The CEO’s HSE award for 2016 for any losses incurred in connection with the building of Albanian state expropriates land from private landown- in an award seremony at the hydropower plant. ers according to fixed rates, and makes the land areas CEO’s meeting at Vang gård "There are plots available in the vicinity, and we have needed available to the developer. These rates are not November 16. helped those who lost their houses to find land and to build high, and for many they are not enough to live on after Albania's primary energy replacement houses," he says. "They have also received they lose the basis for their livelihood. source is hydropower, but livelihood support. The aim is to make sure that their Statkraft therefore initiated a voluntary project currently it imports around standard of living is the same as or better than the income whereby people are provided in kind support, including 30 per cent of its energy and quality of life they had before the project began." production equipment, plants, livestock and machinery. needs. Initially, Avdiu’s family was hardly affected by the This Livelihood Support and Development Programme project, but then it was decided to build a road on the is based on international standards where monetary south side of the Devoll Valley. The new road ran straight compensation is not permitted. Instead, inhabitants are across the farm belonging to his father, Sabri Avdiu, who given help to improve their current livelihoods. This is lost more than 3 000 square metres of land. Alban's own intended to support them for their loss of income and family was among those directly affected by Statkraft's provide them with new earning possibilities. project. Some of those who lost their houses have also been % given replacement housing. A total of 21 houses iden- 17Once the Devoll projects are WIN–WIN It was a difficult time for the younger Avdiu. tified as being necessary to be demolished in the Banja completed, Albania's energy His father lost many of his fruit trees, and he aligned project were determined to be eligible for replacement. production will increase by 17 per cent. with others who opposed the development. Fifteen of these cases were resolved by replacement "There was a period when it was awkward at family housing schemes, but in one village, Drize, reaching

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The inhabitants in the Devoll Valley have generally been extremely positive to the development. Most of them see that it will lead to a higher living standard in the area.

TOM KRISTIAN LARSEN, COUNTRY MANAGER IN ALBANIA

A new way of life. an agreement proved difficult at first. The inhabitants during the handover ceremony in spring 2016. "I never Fifteen households waived their right to this benefit offered by the project imagined ever living in such a nice house. It has two n his opening speech, the prime minister were relocated and 2 and ended up in trouble when the water rose up to their floors and a spacious terrace that overlooks the Devoll emphasized how the Devoll project been given new housing More than as a result of the doorsteps. At the last minute, the authorities managed Valley; it's completely different to what we had before." was important not only nationally, but development of the to reach an agreement with the families in Drize, too. The importance of the Devoll project is not only local; locally, too. "The opening of Banja is a Banja hydropower plant. "The situation in Drize was an exception," says Tom it is extremely important for the whole of Albania. As just a Ihistorical moment for the entire region, The standard of this Kristian Larsen, country manager in Albania. "The peo- well as increasing energy production from renewable which has remained isolated and remote for housing is higher than that of their previous ple in the Devoll Valley have generally been extremely sources, providing new jobs and modern infrastructure, power plant far too long," he said. homes. Replacement positive to the development. Most of them see that it and laying the foundation for future growth, it is also a Some of the ripple effects of the hydro- roads, a new school and leads to more jobs, better and new roads that improve reference project in terms of HSE and environmental power development are new and improved potable water supply access to the rest of country, better waste management standards. infrastructure. systems have also been built in connection with and a higher living standard to the area." "With the help of impressive engineering the new development. MORE DEMOLITION WORK Parallel with, though "This investment is a good skills, more than 100 kilometres of road REPLACEMENT HOUSE For an Albanian family, somewhat behind the Banja development, work on the have been built in this area alone. The road 1 | The bridge. The building of getting a new house marks a milestone in life, one Moglicë project has been going on. Moglicë is situated example of how private between Banja and Gramsh has 14 bridges, Banja, 65 kilometres southeast that involves many rituals. This also applied for the 15 deeper inside the Devoll Valley, is more remote, and has one of them the second-longest in Albania, of the capital Tirana, has given interests serve the interests the region a boost in terms families who were provided with brand new houses in fewer inhabitants. Eleven houses are currently consid- measuring 520 metres. Statkraft is setting an of infrastructure. Among other connection with the development project. The houses ered as eligible for replacement by the project, and a of entire communities," says example for all other companies investing in things, it has led to the building were built in accordance with modern Albanian build- total of 37 families qualify to benefit from the livelihood Albanian Prime Minister Albania to follow," said the prime minster. of 14 new bridges. ing standards, and with energy-efficient measures to support and development programme. "The social and environmental ripple 2 | Good climate. Albanian Prime reduce energy consumption. For most of these families, The project’s Environmental and Social Management Edi Rama at the opening effects of the development have been Minister Edi Rama and Statkraft's CEO Christian Rynning-Tønnesen the new houses represent a marked increase in their team is already well under way with the project in ceremony for the Banja tangible for the local inhabitants. Several emphasize the good climate of housing and living standards. Selim Buzdra, one of the Moglicë – where at least this time, Alban’s family will families have moved into new homes of a cooperation in realising the Devoll inhabitants of the village Qerrett, was visibly moved not be affected. hydropower plant. far higher standard. The project has also led project.

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2 to the building of a new school as well as to In Statkraft, the Devoll project involves environmental improvements. Some 250 not only the business areas International hectares of forest have been rehabilitated, Hydropower, which is developing it, and new fishing opportunities have been Power Generation, which will operate it. created, and the chronic flooding of the Energy will also be sold, which is where Devoll River is now a thing of the past." the business area Market Operations and IT will provide its expertise. Production plan- MARKET DEVELOPMENT Both Prime ning and trading tools have been specially Minister Rama and Statkraft's CEO Christian developed for this project, and Statkraft's Rynning-Tønnesen also emphasized the Continental Assets & Market Access unit importance of the project for developing the based in Düsseldorf, Germany is cooperat- Albanian energy market. ing with a local operating team in Albania. "We are very pleased that the Albanian The Albanian energy market is still government last year passed a new energy small, under-developed and with low law and this summer committed itself to liquidity, so only part of the electricity establishing a market model and a power produced by the Banja hydropower plant market within the next three years," said will be delivered to consumers in Albania. Rynning-Tønnesen. Electricity will also be exported to other markets in southeastern Europe. From crisis to opportunity 3 1 | Good atmosphere. Albanian Prime Minister Edi A GOOD LEARNING PLATFORM There is Rama, with Tom Kristian Larsen, country manager, still considerable potential for developing By developing new business he pumped-storage power plant Innovation. When the Ola By, project manager; and Asbjørn Grundt, former hydropower in Albania. in Erzhausen is situated in a Erzhausen pumped-storage EVP International Hydro, at the opening ceremony "This project is also extremely ­important opportunities, Statkraft forest setting between Hannover power plant in Germany for the Banja hydropower plant. Albanian Minister of lost an important source of Energy and Industry Damian Gjiknuri, and Norway's with respect to culture building and safeguarded the long-term and Göttingen in Germany. After income almost overnight, ambassador to the Republic of Albania, Per Strand ­knowledge development," said Prime StatkraftT took over operation in 2009, the capacity for innovation Sjaastad, also attended the opening ceremony. Minister Rama. "Banja is not just a hydro- prospects for the pumped- the plant generated steady earnings from and creativity was put to 2 | Pure energy. Banja and the Devoll project help power plant; it also serves as a platform for supplying primary control reserve – until the test. The expansion of increase the country's production of pure energy storage power plant and 30 jobs . the plant's water storage by 17 per cent. 3 | Door-opener. Banja is the first local specialists who are qualified for and the grid operator changed this practice capacity will lead to power plant to be built by Statkraft in Albania, and integrated into the administration of this almost overnight. After 2014, it was no savings in grid tariffs of expectations are high for the next chapter. work." Judith Tranninger Dag Spant longer possible for Erzhausen to deliver EUR 1.6 million a year.

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The trust and cooperation between FACTS Düsseldorf and Erzhausen has been essential Erzhausen pumped-storage for the excellent results we achieved. plant

POWER: 220MW NUMBER OF EMPLOYEES: 30 COMMISSIONED: 1964 2 STATKRAFT TOOK OVER ­OPERATION: 2009

MORE LEGS TO STAND ON 1. Prequalified for delivering secondary control reserve 2. Prequalified for delivering tertiary control reserve 3. Backup for primary control reserve of multi-megawatt battery 4. Balancing of the virtual power plant

In addition, Erzhausen can provide so-called black starts. A black start is the process of restoring an electric power station or a part of a power grid to operation without relying on the external trans- mission network

FACTS Control reserve only positive control reserve. "This was a 1 | "Green Battery". Pumped ary control reserve, the plant has also been services the company has committed to. in the spot market – unless they have to huge shock," says Maik Thalmann, then storage hydropower plant serves prequalified for tertiary control reserve. Importantly, the plant also interacts with complement the first two machines. as a kind of green battery where manager of the German hydropower plant "The changes required a lot of the Statkraft's virtual power plant in Germany, This flexibility was one of the reasons water can be pumped back group and today responsible for operating into magazine for later reuse for employees at the plant and their colleagues with over 8 700 MW of wind and solar why the expansion of the power plant's The term control reserve and maintaining Statkraft's power plants in power generation and regulatory at the trading office in Düsseldorf. In con- power. Erzhausen's rapid pumping and pro- water storage capacity was approved. refers to power capacity that Germany. He was put under pressure to find balancing services in the grid. nection with the prequalification, extensive duction output can offset deviations in this Another reason was that the expansion gave is instantly available to even new business opportunities for Erzhausen. 2 | Restructuring. Rüdiger reprogramming of the machinery was electricity production and enable Statkraft savings in the plant's grid tariffs of EUR 1.6 out power production and Hossfeld, machine fitter and consumption, and counteract "The change not only impacted a busi- required to meet the terms the grid operator to deliver the quantities of power it has sold, million annually over the next 10 years. electrician Ralf Pape, are two unwanted voltage or frequen- ness model – after all, 30 people work in the of the 30 employees who have had set," says Thalmann. or to absorb overproduction. This will limit Operating volume was increased by install- cy fluctuations in the power power plant,” he says. contributed to restructuring and "The trust and cooperation between balancing costs. ing breakwaters on the dam in the upper grid. Deliveries of control innovation at the hydropower plant. Düsseldorf and Erzhausen has been essen- reservoir, giving it about 10 per cent higher reserve are often defined by CLOSE COOPERATION Despite the sud- tial for the excellent results we achieved," MORE ROOM TO MANOEUVRE capacity. In the lower reservoir the overflow how fast and long the control den change in the grid operator's prac- he emphasises. Flexibility and speed are the pumped-­ threshold was raised to accommodate the reserve can be provided, tices, Statkraft was already in the process The pumped-storage power plant in storage power plant's biggest advantages. increased volume of water. namely primary, secondary and tertiary control reserve of expanding its range of services at the Erzhausen also has an important role to play In just 90 seconds, the plant can switch "We have invested EUR 4 million in the respectively. pumped-storage power plant. The plant was as a backup in Statkraft's new investment in from producing hydropower to pumping expansions," says Thalmann. "Through prequalified to provide positive secondary the large-scale lithium ion battery storage water back into the reservoir. While two the annual savings in grid tariffs alone, we SOURCE: THE NORWEGIAN ENCYCLOPEDIA control reserve, and the operating range was system in Dörverden. If this multi-megawatt machines at any time provide secondary can recoup that investment within a few increased from the original 87 MW to 109 battery is unable to deliver primary control control reserve, the other two provide ter- years. Not to mention the plant's increased MW, which had a positive impact on earn- Maik Thalmann, Vice President reserve for technical reasons, Erzhausen tiary control reserve to offset deviations in flexibility! Now we have even more legs to ings. In addition to the delivery of second- Operations & Maintenance Germany. can step in and carry out the control reserve the virtual power plant and for daily sales stand on."

16 STATKRAFT NO 3 2016 NO 3 2016 PEOPLE & POWER 17 FEATURE I HYDROPOWER&SOCIETY A good life in the mountains. Hydrologist Even Loe moved from Oslo NORWAY with his wife Marit to pursue an exciting job opportunity that opened up for him in Statkraft 10 years ago. Together with their children Rasmus and Jostein, they often go hiking in the mountains, and appreciate the natural surroundings and public services in the municipality. Power town

The residents of Luster are well aware that water creates ripples.

Heidi Bruvik Sæther Hans Fredrik Asbjørnsen

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FACTS Statkraft in Luster Municipality

Statkraft has operated in Luster Municipality for almost 40 years. Leirdøla hydropower plant began production in October 1978 and Jostedal hydropower plant was com- missioned in 1990. The com- pany's regional operations centre for Central Norway is located in the municipal centre of Gaupne. 3 1 | Infrastructure. Tanja Mari Fiskaa Haugen moved to Gaupne in Luster from Ålesund in 2001. She lives here with her husband and four children. Her job at Statkraft's regional office in Gaupne has given her the opportunity to work in various departments. "Hydro- power development has made the great outdoors here much more accessible. I have a family of active skiers FACTS and we are on the ski lifts almost all winter," she says. Power Haugen is pictured here with her daughter Andrea (16) municipalities and son Sverre (10). 2 | Possibilities. Mayor of Luster, Ivar Kvalen, cannot imagine what the municipality would be like without the hydropower industry. Close to 200 Norwegian | 3 Housing standards. The houses along the Jostedøla municipalities receive River are beautifully situated. revenues from hydropower 4 | 100 million. With a 25-meter swimming pool, diving tower, climbing wall, slides and children's pool, Lustra- production, but only badet is popular among the locals in Luster Municipality 10–15 members of the and visitors from neighbouring municipalities. "Lustra- Association of Hydropower- badet would never have been built without the revenue producing Municipalities from hydropower," says Mayor Ivar Kvalen. (Landssamanslutninga av Vasskraftkommunar (LVK)) can be said to have particularly high revenues as a result of hydropower development. These municipalities all have small populations combined with uster lies at the head of Sognefjord, economic development. Revenues from large hydropower plants. The framed by the mighty Jotunheimen property taxes, licence fees and sales of revenue comes from licence and Breheimen mountain ranges and concessionary power make us, to put it fees and taxes that builders the Jostedalsbreen glacier. But, it is not simply, a unique and attractive municipality and power plant owners have Lonly magnificent scenery that character- in the region." to pay to the municipality. ises this municipality of 5 100 inhabitants: SOURCES: LVK, NVE thanks to hydropower development, Luster BETWEEN HILLS AND MOUNTAINS has been offering its inhabitants a wide Luster has schools, daycare centres and range of cultural opportunities and excep- services for the elderly in every nook and tional public services for almost 50 years. cranny of this sprawling municipality. This "It's difficult to envisage Luster without is not the case in the neighbouring munic- the power plants," says Mayor Ivar Kvalen. ipalities. "Of our municipal budget of around "The most important effect of hydro- % NOK 450 million, power revenues repre- power is that we can maintain highly 22of Lusters municipal budget is sent nearly NOK 100 million. This enables decentralised and good quality public us to deliver additional benefits relating services," says the mayor, a member of covered by power revenues. to schools, care of the elderly, culture and Norway's Centre Party.

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High and beautiful. Jostedal hydropower plant's main reservoir is Lake Styggevatn. The highest regulated water level is 1 200 meters and lowest is 1 110 meters. That means a total adjustment for Styggevatn reservoir is 90 meters.

If you look at a map of Southern Norway, Jotunheimen and Jostedalsbreen are centre stage, and we are fortunate to live in close proximity to them.

Luster's 658 schoolchildren, from grades 1 to Water was channelled to the power station at ational side." Statkraft's regional office ing the community centre, are the result of companies that need an economic boost. 10, are divided into 10 schools. By compar- Fortun. A few decades later, Statkraft came for Central Norway is located in Luster's licence requirements for hydropower devel- "In addition, NOK 5 million of the annual ison, neighbouring municipality Stryn has into the picture. First, with the development municipal centre Gaupne. The 50 positions opment. It also helps a great deal that the licence fee is used for business develop- just five schools for its 968 students. of the Tunsbergdalen Valley and Leirdøla here have been extremely important for municipality receives power revenues so it ment," says Mayor Kvalen. "Our businesses "Clearly it is expensive to maintain power plant in the mid-1970s, and later with attracting new residents to the area, as well can afford to operate them." For hydrologist clearly have access to the best business schools with as few as 10 pupils, but Luster the far bigger Jostedal hydropower plant in as developing local expertise. Loe, Luster was the perfect spot to move. development programme in Norway." is a large and far-flung municipality with 1990. Instead of reading about glaciers in Oslo, he Several companies have been established large distances between towns," says Kvalen. Even Loe, hydrologist Jostedal hydropower plant uses a catch- CLOSE TO NATURE Hydrologist Even Loe is could experience them in everyday life. in the municipality because of the excellent "Therefore, we decided that it makes sense." in Statkraft, lives in ment area of 144 square kilometres at an alti- one of those who moved here. He works for "If you look at a map of Southern programme. They have in turn created jobs. Jostedal with his wife The mayor also grew up in Luster and has and two sons. tude of 1 200 metres. The main reservoir, Lake Statkraft and lives in Jostedal with his wife Norway, Jotunheimen and Jostedalsbreen The leading producer of transfer labels for followed developments closely for a long Styggevatn, is furthest north in Jostedalen and two sons. Neither Loe nor his wife had are centre stage, and we are fortunate to live clothing, Avery Dennison NTP, is one of the time. Both old and new residents are very Valley and just east of Jostedalsbreen, the any connection to Luster before they decided in close proximity to them," he says. "But municipality's best examples. familiar with the history of the hydropower largest glacier on the European mainland. The to move from Oslo around 10 years ago. the nature is not only beautiful; it also pro- "Avery Dennison NTP got help with municipality. total height of fall is 1 186 metres from the "I had just finished my thesis in glaci- vides a living for us and the municipality." start-up funds and office space from the reservoir down to the power plant. ology, the study of ice, and our second son municipality, and set up the factory 25 A POWER MUNICIPALITY TAKES FORM "All the residents of Luster see how had been born," says Loe. "When I saw SUPPORTS BUSINESSES One of the years ago in a municipal business centre The adventure started in the 1950s, when important hydropower development has Statkraft advertise a hydrologist position in licence conditions when Jostedal hydro- in Gaupne," says Kvalen. "In the beginning Norsk Hydro began the largest hydropower been for the municipality," says Kvalen. "In Luster, we jumped at the opportunity. The power plant was built was the establish- there were four employees; now there are development of its time, in the Sognefjellet addition to good public services, it has also fact that Statkraft offered to rent a house for ment of a municipal industrial fund worth 130. This shows how important these funds mountain pass, to provide power to the created important skilled jobs, both during us, also made it very easy to accept the job. NOK 22 million. The return from this fund are for regional business development and company's aluminium industry in Årdal. the construction period and on the oper- Some buildings in the municipality, includ- is earmarked for loans to promising local local jobs."

22 STATKRAFT NO 3 2016 NO 3 2016 PEOPLE & POWER 23 Reuse. Smolt splash around in FEATURE I HYDROPOWER&SOCIETY reused discharge water from NORWAY Fykanvatnet hydropower plant. Technical leader Bjørn Magne Johansen, Operations Assistant Svante Brun and General Manager Rose-Lill Olsen in Marine Harvest Glomfjord appreciate the cooperation with Power Plant Manager Karl Svein Thorrud. Marine Harvest Norway

> Norway's largest fish farming company with over 1 600 employees. > In Norway, the company covers the entire value chain from pre-production to breeding stock, roe, fish, processing and sales Innovative distribution. > In 2014, the company ­produced 3.8 million meals of salmon every day. Most of the salmon from opera- reuse tions in Norway is exported to Europe, USA and Asia. > The company has operations all along the Norwegian In Glomfjord, Statkraft cooperates with Marine coast from Flekkefjord in Agder County to Kvænangen Harvest on beneficial water reuse. First the in Troms County. > Marine Harvest Norway is water generates power, then it’s used to raise part of the Marine Harvest ASA group, which has oper- young salmon. Water reuse may prove vital for ations in 24 countries and the future of hydropower. is listed on the Oslo and New York stock exchanges. Its global headquarters is located in Bergen. Sissel Fantoft Jimmy Linus > The Marine Harvest Norway operation in Glomfjord, is one of the biggest smolt facilities in the world, and ykanvatnet hydropower plant in RELIABLE ACCESS The cold water dis- IMPORTANT COOPERATION The pump REUSE "It's great that the water can be can accommodate 12 million smolts. The company Glomfjord uses the 87-metre height charged from Fykanvatnet hydropower station was completed in 2010. The idea to reused multiple times. The alternative for has 18 employees. of fall in the Fykanåga watercourse to plant is mixed with hot water Marine establish a partnership with Statkraft had the industrial park and the power plant SOURCES: WWW.MARINEHARVEST.NO produce electricity for 600 households. Harvest gets from Glomfjord Industrial Park been considered for a while, and when would be to discharge the water into the AND WWW.GLOMFJORDINDUSTRIPARK.NO F"What’s special about this hydropower where it has been used as a coolant. Then Marine Harvest lost access to its former sea after it was used for cooling and power plant is that we sell the water from Lake the hot and cold water are regulated to the cold water source, things started moving generation, respectively." Fykanvatnet after producing electricity from different temperatures required by the vari- quickly. The hot water the smolt facility gets it. In this way we can charge twice for the Karl Svein Thorrud, ous smolt tanks. "The cooperation with Statkraft is essen- from Glomfjord Industrial Park also comes same water," says Karl Svein Thorrud, man- manager of Glomfjord, "The temperature is determined by the tial for our production," says Olsen. from Statkraft. "Discharge water from Fykanvatnet Svartisen and Fykanvatnet hydropower plant ager of Glomfjord, Svartisen and Fykanvatnet hydropower plants. smolt's stage of development. When the fry The fish farm in Glomfjord accommo- Neverdalsåga power plant goes to the hydropower plants. have become smolt, we also mix in seawa- dates 12 million 100-gram smolts. Last year industrial park, where it is used in, among ter," says General Manager Rose-Lill Olsen the facility produced 8.3 million smolts. other things, Yara's production of mineral SOUGHT-AFTER FRESHWATER On in Marine Harvest's Glomfjord operation. "We receive fertilised eggs at our hatch- fertilizers," explains Thorrud. "In addition, > Opened in 2014 inside the the other side of Glomfjord, in Glomfjord The agreement with Statkraft contri­butes ery in the industrial park," Olsen explains. it is the drinking water supply for the entire machine hall of Glomfjord Industrial Park, Marine Harvest operates the to the smolt always having the optimal "When they reach 5-7 grams in size, they town of Glomfjord." hydropower plant. > Installed capacity is world's largest smolt facility. temperature conditions. "In the summer are moved to the nursery. Here they are "The Glomfjord community is totally 2.4 MW from one Francis "These plants depend on freshwater for we use more of the cold discharge water, eventually sorted and vaccinated and dependent on Statkraft's ability to deliver turbine. Annual production production," explains Thorrud. "After we and in the winter we need more hot water," remain in the tanks until they are about a water and electricity," says Thorrud. is 12 GWh. have produced power, the water is chan- Olsen says. "The pumping station at the year old. Then they are collected and trans- "The power delivered by Glomfjord and > Uses an 87-metre height nelled from Fykanvatnet to a pumping hydropower plant has a capacity of 80 cubic ported by boat to the Marine Harvest fish Neverdalsåga hydropower plants for exam- of fall in Fykanåga to produce electricity for 600 station that Marine Harvest built outside million 100-gram smolt metres of water per minute, and according farms along the coast, from the Trøndelag ple, doesn't go to the main grid but rather 12 households. the power plant. The water is pumped 4.8 have a place at the to the agreement with Statkraft, we are region in the south to Troms County in the directly to Glomfjord Industrial Park via kilometres to the smolt facility through two Glomfjord plant. guaranteed access to 60 cubic metres at all north, where the fish live in net pens until transformers inside the industrial area." pipes with a diameter of 800 millimetres." times. they are harvested."

24 STATKRAFT NO 3 2016 NO 3 2016 PEOPLE & POWER 25 CURRENT AFFAIRS POWERTALK

POWERTALK

Network builder I have been a politician since At fifteen, Thorhild Widvey was the conductor of the children's and youth 1979 and am choir in her native village on Karmøy. Now as Statkraft's new chair of the board accustomed to of directors, she aims to strengthen the company's voice in the green shift. controversies now and then. I can live Knut Fjerdingstad Hans Fredrik Asbjørnsen with that.

ince her appointment in June, Widvey has been a member of parliament THORHILD WIDVEY Thorhild Widvey has spent a lot for eight years, state secretary in two min- of time getting to know Statkraft. istries, and has held two ministerial posts. The former top politician, with a As petroleum and energy minister she was Snumber of Norwegian private sector posi- responsible for the oil, gas and power sectors tions on her CV, has visited several Statkraft in Norway in the early 2000s. Many years of CURRENTLY: Statkraft’s new chair of the board. locations and met many employees. experience from the boards of large public AGE: 60 "I am very impressed by the activity in and private enterprises, a lot of them in the COUNTRY: Norway the different business areas and the high energy sector, was a key factor when the BACKGROUND: Long level of expertise of the people who work Ministry of Industry appointed her board political background here. Statkraft is one of Norway's most chair of Statkraft in June this year. However, including terms as important companies," says Widvey. "We it was the alleged friendship between the minister of culture and have a very solid position, especially in two former government colleagues, Minister minister of petroleum and energy. See a summary Europe, but also internationally." of Trade and Industry Monica Mæland and of Widvey's career on the "What are your ambitions for the company?" Thorhild Widvey, that stole the headlines fol- next page. "Statkraft will drive the green shift here lowing the announcement of the new chair. FAMILY: Married, two in Norway and will have a stronger voice in children. the international debate." STORMY START "How did you experience the media coverage around the appointment?" BREAKTHROUGH A high level of com- "As I understood it, the debate revolved munity involvement is a common theme mostly around how the case was handled, throughout Thorhild Widvey's professional and not about me as a person or my qualifi- life and is what led her into politics at an cations. The minister has explained this, and early age. However, this was not a planned according to the Public Administration Act, or obvious career path. After studying sports she was not in a conflict of interest. We've education in Denmark, Widvey returned known each other for many years through home to Karmøy and became a sports politics, but have never had a close relation- coach for the physically challenged. ship. I have been a politician since 1979 and "It was a very exciting and interesting am accustomed to controversies now and job, which taught me a lot about making then. I can live with that." breakthroughs," she says. "Together we "In Norway there is an ongoing political dis- achieved the impossible time and again." cussion about privatising Statkraft. Some believe it Her efforts were noticed and she was is time to take the company public, partly because soon recruited into local politics as a the government last year changed the announced representative for the Conservative Party. dividend exemption for 2016 to 2018. What is your This was the start of an extensive career. position on this?"

26 STATKRAFT NO 3 2016 NO 3 2016 PEOPLE & POWER 27 CURRENT AFFAIRS POWERTALK CURRENT AFFAIRS GUARANTEES OF ORIGIN

Pioneer. In Brazil, the first power to be traceable will come from the Macaúba wind farm in Bahia. POWERTALK

"It’s not part of my role to have an opinion A solid strategy is vital Biström and Ekenstierna have backgrounds on whether or not the company should from companies like Vattenfall and E.ON Torsten Amelung, be privatised. I follow the state ownership in times of uncertainty Sverige. SVP of Trading and policy and the owner. Determining the Customers in Statkraft. dividend is the owner's prerogative. But of with many challenges PRODUCTIVE BREAK Networking is a key course we as the board will offer advice to related to the industry word for the new chair. In addition to all her the owner, also regarding dividends," says roles and positions in politics and business, Widvey and adds: in general and to our which have given Widvey a large interna- "It’s important that Statkraft has a capital tional network, her family life has also been situation that allows it to reinvest, both in company in particular. important for networking. We have Norway and internationally. So I look very In the late 1990s, she moved with her always strived positively on the ongoing improvement pro- husband Osvald Bjelland and their two gramme in the company. It's not just about children to London. She took a break from to lead in the cutting costs, but also about improving our politics to focus on their children's education operations in the different business areas. at an international school with students from development of This will lay the foundation for new growth." important to present accurate information around 50 different nations. She considers the certificate and all the nuances. Some projects have this the wisest choice she has made in her TROUBLED TIMES The new chair believes ended in the red, but overall it has remained life. She quickly became head of the interna- markets for in growth in new and existing markets. in the black. The average return on overseas tional group at the school and experienced "A solid strategy is vital in times of projects since 2001 is nine per cent." in practice, how important it is to teach renewable uncertainty with many challenges related to "How will you avoid write-downs in the tolerance irrespective of nationality, religion, energy. the industry in general and to our company future?" skin colour and language. Over the years in in particular. The new board will review "Risk analyses are vitally important, and London, Widvey built up a global network the strategy and continue to look at how we work systematically on all types of anal- from which she still derives a lot of benefit Statkraft should develop in the future." yses – including financial and market anal- and enjoyment today. "Politicians who are critical of Statkraft's yses – and look at trends in power prices. "It was very instructive to be overseas, ventures abroad claim that they are loss-making The Group prepares such analyses, which and through my involvement in the school I Traceable sustainability projects. How do you respond to that?" are presented to the board, and we spend met many wonderful and interesting people "I'm proud of what Statkraft have a lot of time on these. But it’s impossible to from around the world, she says." Statkraft is the first energy producer to offer renewable power achieved, but there is always risk associ- guarantee that no wrong investments will When Thorhild Widvey returned home ated with overseas investments. One thing be made in the future," says Widvey. with her family in 2002, she took on new that can be traced with guarantees of origin in Brazil and India. is to find good projects that are profitable; "Several of the Board members have roles in politics, first as state secretary and another thing is dealing with possible experience in international investments, and then as petroleum and energy minister. political instability, corruption and different this is something Statkraft will benefit from." Under Prime Minister Erna Solberg, onsumers are becoming more climate power from the 86-megawatt hydropower plant FACTS HSE cultures, to mention a few examples. In addition to Thorhild Widvey, Statkraft Widvey served as minister of culture until and environmentally conscious. This Malana. So thorough preparation is needed before appointed three new directors in June: the end of last year. She has no plans for a increases the demand for electricity "We are pleased that together with Statkraft a board can make an investment decision. Peter Mellbye, Helene Biström and Bengt new comeback in politics. produced in a sustainable manner. Now we can be a pioneer for I-REC in India, and we International Renew­ Regarding the claim that the international Ekenstierna. Mellbye has long experience "No, it's the job as board chair of Statkraft CStatkraft is meeting this demand in India and are proud to be the first in this market," says able Energy Certif- ventures are loss-making projects, it’s also from Norwegian Statoil, and the Swedes that matters now," Widvey says. Brazil. O. P. Ajmera, President, CEO and CFO of Malana icate (I-REC) is an "The international certificate standard for Power Company Limited. "This provides good international certificate renewable energy, the International Renewable support for hydropower generation in India, and standard for renew­ CV Energy Certificate (I-REC), helps compa- strengthens the trend here towards the produc- able energy. Only one nies to certify the origin of renewable energy tion of more renewable energy." I-REC-certified gener- used outside the established certificate mar- In Brazil the first power to be traceable will ator can produce an 1975–1976 1976–1982 1983–1985 1987–1989 1989–1997 1997–2002 2002–2004 2004–2005 2005–2013 2013–2015 2016 kets for renewable electricity in Europe and come from the Macaúba wind farm in Bahia. I-REC guarantee of ori- STUDENT SPORTS PROJECT MEMBER PARLIA- DIVERSE STATES PETROLE- BOARD CULTURE CHAIR OF North America," says Torsten Amelung, Senior Statkraft is working with I-REC Standard and gin. Producers of I-REC Sports COACH MANAGER OF COUNTY MENT RE- ENGAGE- SECRETARY UM AND MEMBER in MINISTER THE BOARD Vice President of Trading and Customers in other stakeholders to establish certificate stand- guarantees must follow college at an Karmøy COUNCIL PRESENTA- MENTS in the Ministry ENERGY large private in Solberg's in Statkraft a number of rules and Statkraft. "Now we are also offering this in India ards in several markets around the world. in Århus, institution for ­municipality. in Rogaland TIVE for the Living in of Fisheries MINISTER in and public government. and various procedures for produc- Denmark. the physically and market­ Conservative London and and then in Bondevik's companies. board and Brazil through cooperation with Malana "We have always strived to lead in the ing renewable energy. challenged. ing director party. engaged in the Ministry government. positions. Power Company Limited and Instituto Totum develop­ment of the certificate markets for Also in1986. at Rica social work. of Foreign The end user receives Hotels in Affairs. respectively."­ renewable energy," says Amelung. "In Europe, the I-REC guarantee as Haugesund Statkraft supported the creation of this market proof that the electricity municipality. SATISFIED PARTNERS The first guarantees in the early 2000s. An increasing number of they buy is produced in of origin from India were created with hydro- ­companies want sustainable products." a ­sustainable manner. SOURCE: STORTINGET, LINKEDIN

28 STATKRAFT NO 3 2016 NO 3 2016 PEOPLE & POWER 29 CURRENT AFFAIRS PEOPLE

PEOPLE

??? xxx Football was on the agenda RENEWABLE REVOLUTION. when 24 employees from CEO Christian Rynning-Tønnesen We often hear about the green shift as if it were Statkraft offices in Albania, was a panel member during The something new. The reality is that we have been Dusseldorf, London and Energy Summit 2016 in London Amsterdam met in September in November. The topic for working on the green shift for generations. for the finals of the Statkraft discussion was the clean energy Nansen Cup 2016. Once again revolution. Norwegian Minister STATE SECRETARY KJELL-BØRGE FREIBERG, it was Dusseldorf who won the of Petroleum and Energy Tord MINISTRY OF PETROLEUM AND ENERGY, DURING THE OPENING OF NEDRE RØSSÅGA IN OCTOBER indoor cup with a 2–1 victory Lien gave the opening address over a strong team from the at the conference. 24 Albanian office.

Motivated by the climate challenge ... AND ANIMALS

The chosen few. STATKRAFT'S FOUR NEW Statkraft's four TRAINEES have academic Better new trainees backgrounds in technology, finance are Nikolai conditions for Austarheim, or strategic management, and work Larissa in different business areas. What lake trout Leuenberger, they have in common is a strong Dominique motivation to work on renewable SEVERAL MEASURES have been implement- Farag and energy and contribute to solving the ed in the Tokkeåi River in Telemark County Morten Aslesen. to improve conditions for lake trout. Diving climate challenge. expeditions have already observed trout of Nikolai Austarheim from up to 10 kg in the upper sections of the river. Norway, Larissa Leuenberger from For 50 years, the Tokke-Vinje watercourse has Switzerland, Dominique Farag from been regulated for power generation. The first USA and Egypt, and Morten Aslesen hydroelectric developments were carried out from Norway are the four who made with other priorities and different environmental Valued. Apprentice Sondre Reisæter is one of the recipients of the monthly HSE prize, awarded by the grade and were selected from standards than those which we follow today. Project Manager Lars Kristian Fadnes in AF Gruppen and Project Manager Arne Sandvold in Statkraft. Through the revision of licensing conditions, among no less than 1 340 applicants. Statkraft, together with local authorities and The number of applicants indicates other stakeholders, wants to find solutions that that Statkraft is a popular employer best combine the need for renewable energy in many countries. Safety campaign that works with local environmental concerns. The two-year trainee programme Measures to be implemented include has four different work rotations, at CONSTRUCTION WORK is well must understand that they should not clearing overgrown areas of the river, improv- least one of which must be served underway on the new Ringedalen see this as being an informer, but rather ing thresholds to more fish-bearing natural streams, and improving resting and spawning abroad. Trainees are recruited by the hydropower plant in Odda Municipality as caring about the safety of their fellow areas for lake trout. The final phase of the department in which they will work in Hordaland County. In April, the workers and workplace." action plan for Tokkeåi will be completed by when the programme is completed. project started an HSE campaign with a The campaign is reviewed each September 2017. Candidates are given a thorough heightened focus on reporting undesir- month in a joint session where report- introduction to the organisation, able incidents. ing is rewarded and the winner of the Statkraft's four new trainees were selected from core business and corporate strat- "It's all about correcting things as month's HSE award is announced. egy. In addition to a tailored rotation soon as possible, before any mishaps Almost 200 undesirable incidents among no less than 1 340 applicants. The number programme, each trainee is assigned occur," says Statkraft's project manager (RUH) have been reported in the pro- of applicants indicates that Statkraft is a popular a dedicated manager responsible for Arne Sandvold. "The challenge has been ject. Since the campaign got underway the trainee's learning and develop- to change attitudes about reporting in April there have been no lost-time employer in many countries. ment. undesirable incidents (RUH). Everyone injuries at the plant.

30 STATKRAFT NO 3 2016 NO 3 2016 PEOPLE & POWER 31 CURRENT AFFAIRS PEOPLE

OUR PEOPLE

Statkraft has 4 200 employees,­ Monsoon rains, vast quantities of snow, and and there is always someone heavy melting all contribute to providing KHEKH RAM changing jobs. Khekh Ram with an extremely varied ON THE MOVE working day. We asked him about … Position: Senior Work Attendant Department: Allain Duhangan plant ... the work. I cross-check the automatic readings in Himachal Pradesh for the water flow rate and the reservoir levels to Country: India prevent damage and ensure predictability. Manual In Statkraft since: 2012 checks of data are even more important in extreme Currently: Khekh Ram is weather conditions. I also check that the sewage indispensable in extreme weather treatment plant is working and in good shape so that conditions. He checks the automatic twigs and other organic material and various types of readings for the water flow rates at waste are filtered away. the Allain Duhangan hydropower Name: Lotte Løland plant, situated in the Himalayas in Country: From Germany to Norway ... inspiration. My job inspires me. To have a job the far north of India. Position: Trainee, Technology Analysis, with good pay and proper working conditions means a Innovation lot. I come from a local village, and my wife and child Years in Statkraft: 1 live close by the plant offices, which means it's easy for me to travel home every week. That's not the case Lotte Løland is back in Oslo after half a for everyone in this area. It's a kind of freedom that is year in Dusseldorf, where she worked in precious, and that makes me want to do the best job I Statkraft Ventures monitoring start-up possibly can. companies and assisting in investment decisions. Now she is embarking on ... the downs. It can be lonely working shifts at a her third trainee rotation and moves to place that's cold and dark all winter, and where you're Corporate Strategy, where she is involved partly isolated from the world around you. But I focus in several projects in the improvement on the positive aspects. After four or five days, my shift programme. is done and I can go home to my family.

... the ups. I appreciate the simple things in life. I like relaxing at home with my family, and I enjoy hiking in the mountains. I've been very lucky to have grown up and to have been able to continue living and working in the Manali region. I'm close to nature here.

... balance. Spending time with my family creates balance at the end of a working week. We do things together, go to traditional festivals and take trips into the countryside. I also like animals, and Name: Hans Bolme we have a cow and a small chicken run. Tending to the animals is a Country: From Norway to Albania form of relaxation. Position: Power Plant Manager Years in Statkraft: 21 ... pure energy. We help supply India with pure energy. That feels good when I think about the challenges we're facing with Hans Bolme is leaving Norway and his global warming, which is frightening. I'm proud of our core values. current position as project manager, We take consideration of the environment beyond the standard Optimum Implementation, Region Central requirements. Among other things, we have strict guidelines to prevent Norway to become plant manager of our work area from being polluted. That's important, because we work Banja in Albania. His responsibilities in beautiful natural surroundings. We've also been well trained in there will include managing maintenance security and crisis management, which helps secure production. Waiting for the spring. After the dark, snowy and and control room functions, and ensuring cold winter months comes the spring. The risk of that workplace safety meets Statkraft being snowed in disappears, but the heavy snow standards and complies with Albanian law. Alf Berg melting gives Khekh Ram busy days.

32 STATKRAFT NO 3 2016 NO 3 2016 PEOPLE & POWER 33 CURRENT AFFAIRS STATKRAFT'S SUMMER PROJECT

Fastest growing. "Oslo is Europe's fastest-growing capital city. This makes the city an interesting object of study," says Tone Standal Vesterhus and Andreas Bjelland Eriksen, participants in this year's summer project. Statkrafts summer project

> Important recruitment arena for Statkraft > Interdisciplinary research project conducted by students > Runs for nine weeks in the Energetic summer > Eight students (seven this year) work in teams, with a supervisor from Statkraft and professional support urban > The findings are presented to development Statkraft's Group Management Urban Development The big cities are setting the direction of future energy systems. Even if energy consumption > More than half the world's population lives now in cities, goes down, new green opportunities are opening and this is expected to rise to 70 per cent by 2050. up for Statkraft, according to this year's summer > Many Western cities have far more progressive climate goals project participants. than their respective countries. > New energy-efficient technologies are increasingly Heidi Bruvik Sæther Tommy Andresen being used in cities.

y 2050, 70 per cent of the world's ANALYSING TRENDS An interdisciplinary, cities, and this places new demands on the people trust," says Vesterhus and she adds: manner than before. Statkraft should moni- population will live in cities. Despite international team of seven selected stu- power systems." "Initiatives such as 'Grønn Kontakt', the tor and participate in these trends." the fact that cities cover only 1.5 per dents spent nine weeks during the summer "Statkraft has a very advantageous Norwegian operator of electric vehi- cent of the earth's surface, urban- to delve into the subject. The findings were business model, because the company cle charging stations, are valuable for ACROSS DISCIPLINES Based on disci- Bisation is one of the megatrends that will later presented to corporate management can leverage the power it has to sell when Statkraft. By participating in the devel- plines ranging from human geography at the shape the future. and a full auditorium at Statkraft's head prices are high and hold back production opment and operation of infrastructure, University of Oslo to economics at Fudan "Several cities set stricter targets for office in Lilleaker. when prices are low," says Andreas Bjelland the company has the ability to position University in China, the topic has been emission reductions than their respective "To meet the future, Statkraft continually Eriksen, a student at BI Norwegian Business itself throughout the entire value chain in addressed from various angles. The students countries," says senior technology analyst analyses markets, technologies and energy School and a participant in this year's a whole new way. This is how a company have found it rewarding. Excited. The project team presented the findings to a Camilla Moe in Statkraft and the reason for systems," says Tone Standal Vesterhus, who summer project. "What we see is that cities creates demand for its product and at the "We have different approaches, which satisfied corporate management. From left Andreas choosing the theme for this summer's stu- studies human geography at the University are not driving development in line with same time ensures sustainable develop- has added a lot of value to the project," says Bjelland Eriksen, Ingvild Jakobsen Roald, President dent project in Statkraft. "Take Copenhagen, of Oslo. "Currently, these analyses occur that traditional thinking. By analysing the ment and a green society." Vesterhus. "We also have different capabil- and CEO Christian Rynning-Tønnesen, Tone Standal for example, which has set a goal to be at the country level. However, we see that energy systems at the city level, Statkraft Car pools have also become increas- ities, so we have complemented each other Vesterhus, Ivo Dimitrov, Shengwen Luo, Fredrik Landèn and Ida Johanna Molvik Haga. completely carbon neutral by 2025, which many cities have far more progressive the energy producer, can adapt to urban ingly popular in several European cities. well. Statkraft has also benefited from the is long before Denmark as a whole." environmental policies than their respective trends and be smarter than its competitors." Statkraft has an opportunity here to summer project on several levels." "The cities have high ambitions, and countries, which in turn affects national exploit its energy expertise in a new way "On the one hand it's nice for us to be urban consumers are making use of solu- development. Therefore, it is interesting to NEW OPPORTUNITIES The student group Vesterhus believes. able to put together an interdisciplinary tions for lower and greener energy con- examine what impact urban development, believes that Statkraft has great potential, "Through cooperative efforts with Drive study group to learn about a theme we sumption," she continues. "Statkraft has an political plans for sustainability, and the especially in electric transport, which is Now, a partially electricified car pool in believe could be of interest to us, and on the advantage here as an energy supplier. But cities' green ambitions may have on the progressing rapidly in Western cities. Germany, the German energy company other hand this is a great way to showcase then we have to exploit and position our- assessment of the future market. New types "In addition to critical knowledge, E.ON has made itself relevant in a new Statkraft as an employer to students," says selves for new consumption patterns." of technologies are being adopted in the Statkraft has a brand and a name that way. It has reached end users in a different Moe.

34 STATKRAFT NO 3 2016 NO 3 2016 PEOPLE & POWER 35 THE STATKRAFT SCHOOL LOW EMISSIONS SCENARIO 2035

IN DECEMBER 2015 a global climate agreement was signed in Paris. The Paris Agreement has a common goal to limit the global temperature increase to below 2°C above pre-industrial levels. Realistic

optimism Mari Grooss Viddal, Senior Advisor, Public Affairs. What will the world's energy systems look like in 2035? According to the Low-emission Scenario, electrification will speed up and the share of renewable energy will more than double in the global energy mix. But what exactly is the Low-emission Scenario, and why do we have it? A main finding Sissel Fantoft Mona Holm is that the entire increase in electricity ONE OF THE MAIN RESULTS of the Low Emissions very year Statkraft develops various POSITIVE SPIRAL The scenario is one of Scenario is that the share of renewables in global future scenarios for energy systems. several analyses of the global energy sector. demand from primary energy consumption will increase from the The scenarios are part of the work "There are many external sources, some today until 2035 current 13% to 29%. 16% done on preparing the long-term of which are very optimistic about reduc- Eprice forecasts (LPF) that form the basis ing greenhouse gas emissions, while others can be covered for decision-making in the company. For are more conservative and just extend the the first time, Statkraft has extracted the current situation, one example of which by emission-free 2°C main findings of one such scenario, the is the IEA New Policy Scenario," she says. power generation. Low-emission Scenario, and made them "The Low-emission Scenario tries to bal- available outside the company. ance these perspectives and illustrates an POWER SECTOR ANNUAL GROWTH IN TWh 2013–2035 "We do this to inform, and because we optimistic, yet realistic, future scenario for want to be relevant in the debate," explains technology development and greenhouse Senior Adviser Mari Grooss Viddal in Public gas emissions from the energy sector." 2,6 % Affairs. "The Low-emission Scenario is an The Low-emission Scenario is based on interdisciplinary collaboration between an assumption that in the coming years the Demand several business areas in Statkraft, and is world may enter a positive spiral whereby the based on our own analyses and external technological, market and political develop- 2 % sources." ments mutually reinforce each other. Hydropower

12 % Wind power

20 % Solar Power GLOBAL ENERGY-RELATED IEA New Policy Low Emissions Scenario CO2 EMISSIONS 40% 36 ELECTRIC VEHICLE share of global passenger GREENER energy production allows emissions to car sales will be 40% by 2035 according to decrease despite energy consumption continuing to the scenario, an increase from 0.5% in 2013. rise, according to the Low Emissions Scenario. 27

36 STATKRAFT NO 3 2016 NO 3 2016 PEOPLE & POWER 37 CURRENT AFFAIRS THE STATKRAFT SCHOOL

STATKRAFT NATION THE NETHERLANDS Statkraft has operations in more than 20 ­countries. One of them is presented in each issue.

"As we see it, a possible outcome is that transport, industry and buildings sectors," THE NETHERLANDS the global technology trends we are now says Viddal. FACTS observing will continue to gain momen- tum and that climate policy will gradually NEW SOLUTIONS In the recent decade, POPULATION: 17 million

be strengthened," says Viddal. global energy consumption has increased : SHUTTERSTOCK PHOTOS CAPITAL: Amsterdam faster than ever before because of pop- SYSTEM OF GOVERNMENT: Parliamentary ABOUT STAKRAFT’S INCREASED ELECTRICITY DEMAND ulation and wealth growth. The increase democracy, constitutional monarchy LOW-EMISSION SCENARIO: PRIME MINISTER: Mark Rutte The global climate agreement signed in has largely been covered by fossil energy LANGUAGE: Dutch and West Frisian Looks at the global energy mix Paris in 2015, commits most countries in sources. Global energy consumption is still and greenhouse gas emissions the world to reduce greenhouse gas emis- growing, but growth towards 2035 will be for the world's energy systems sions. The countries have a common goal lower than previously forecasted, driven by towards 2035. to limit the global temperature increase to more energy efficiency. below 2°C above pre-industrial levels. "The Low-emission Scenario differs THE ENERGY MARKET Main findings >>The rate of growth in renew­ "The Low-emission Scenario is based on from many other energy market analyses by able technologies will continue the expectation that the cost of solar, wind assuming a stronger electrification of energy as in recent years, driven by power and batteries will continue to fall at use for transport and heat, more energy The Netherlands is one of the countries a continued sharp decline in the same rapid pace as in recent years," she efficiency and increased development of producing the least amount of renewable costs and a stronger climate says. "Lower costs of renewable technolo- wind and solar," says Viddal. "The scenario energy in Europe. Only six per cent of energy policy. gies combined with political pressure will forecasts that 29 per cent of the world's production comes from renewable sources >>Global power consumption will (2015). The country is densely populated lead to less consumption of fossil fuels and primary energy consumption will come increase by 2.6 per cent annu- and is known for its flat landscape. A quarter ally during the period, primarily thereby reduced greenhouse gas emissions. from renewable sources by 2035, compared of the country lies below sea level, and half as a result of electrification But the reduction in emissions is still not with the current 13 per cent. A main finding lies less than one metre above sea level. This in transport, buildings and strong enough to get us to the two-degree is that the entire increase in electricity offers limited opportunities for hydropower industry. target." demand from today until 2035 can be and onshore wind power. Offshore wind and >>The entire increase in power Falling battery costs will, accord- covered by emission-free power generation: solar power, as well as distributed energy consumption will be covered solutions, will most likely be the cornerstones ing to the Low-emission Scenario, lead solar, wind, hydropower and some nuclear." by emission-free power of the Netherland's future energy production. generation. to ­electric vehicles becoming globally >>Fossil power generation will ­competitive without subsidies by the INFLUENCE Statkraft presented the Low- drop by 12 per cent during middle of the 2020s. This will contribute emission Scenario during "Arendalsuka" the period. Coal consumption to increased electrification in the transport earlier this year, a forum for Norwegian will fall by 33 per cent by sector. politicians and business representatives. STATKRAFT IN THE NETHERLANDS 2035 from current levels. Oil "This will obviously vary from country "By sharing our knowledge, we can consumption will level off at to country and for different types of vehi- contribute to the debate on future energy current levels by 2025, and decline thereafter. cles, but overall the scenario forecasts a systems, increase awareness of electrifi- Statkraft Markets was established in 78-per cent increase in electricity demand cation and show that a more optimistic DID YOU KNOW THAT ... 1998. The global environmental markets from increased electrification in the approach is realistic," says Viddal. team in Amsterdam focuses on trade

and incentive programmes related to CO2 emissions, European renewable energy resources and green certificates. The team > THE NETHERLAND'S MAIN AIRPORT, Schiphol in offers guarantees of origin, participates in Amsterdam, lies below sea level. voluntary and mandatory renewable energy programmes, offers tailor-made products to > ABOUT HALF of the energy produced in the simplify management of emission permits, Netherlands is based on natural gas. However, gas and provides market access for these production is controversial due to earth tremors, climate products worldwide. Statkraft has and the reserves are being exhausted. never had any physical power production in the Netherlands. > TULIP MANIA in the Netherlands is considered the first case of an economic bubble. It occurred Despite15 the fact that windmills have historically in 1637, when an inflated market with exorbitant EMPLOYEES played an important role in the Netherlands, prices for tulip bulbs suddenly collapsed. 40 the country is among the lowest producers of Fossil energy's share in the power renewable energy in Europe. Today, renewables > THE NETHERLANDS is home to the tallest people Almost 40 employees work in the Statkraft sector will fall from 67% today to account for 6 per cent of energy production. The in the world, with an average height of 184 centi- office in Amsterdam. 34% 34% by 2035. Government's goal for 2023 is 15 per cent. metres for men and 170 for women.

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