SEV

Status for the

Finn Jakobsen Faroe Islands:

11/4/2013 2 Faroe Islands:

• General data:

– Area of 1.399 km2 (i.e. 540 sq miles)

– 18 islands, where 17 are populated

– 49.000 inhabitants

– Main export: Fish and fish products

11/4/2013 3 Electrical Company SEV:

• General company facts : E – 100 % owned by all Faroese municipalities

S – Non-profit, founded 1st October 1946

V – Monopoly on grid operation (transmission & distribution) – “De facto” monopoly on production (97%)

– Under an obligation to supply

– “Micro isolated system” in EU terms ( < 500 GWh )

11/4/2013 4 Electrical Company SEV:

• Key Figures for 2012: E – Turnover2012: 48 M€

S – Total Equity2012: 117 M€

V – 132 full time employees – Annual electrical production 292 GWh

Generation mix 300,0 250,0

200,0 150,0 GWh 100,0 50,0

0,0

2011 1954 1957 1960 1963 1966 1969 1972 1975 1978 1981 1984 1987 1990 1993 1996 1999 2002 2005 2008 Renewable Thermal

11/4/2013 5 - Electricity Demand - Generation Mix

11/4/2013 6 Electricity demand for one week:

Typical week 50

Monday Tuesday Wednesday Thursday Friday Saturday Sunday 45

40

35 MW 30

25

20

15

11/4/2013 7 Power Generation mix:

January 2013 100

90

80

70

60

[%] 50

40

30

20

10

0 Thermal % Hydro % Wind %

11/4/2013 8 Main drivers for renewable energy in the Faroe Islands

11/4/2013 9 Faroese Carbon footprint policy:

75% renewable energy in the electrical energy sector by 2020

Electrical energy production 400 365 GWh 350 300 274 GWh

250

104 275 200

Renewables GWh 150 Oil 100 170 50 90 0 2011 2020 Year

11/4/2013 10 Reduce the dependency on oil:

Oil consumption versus cost 1995 - 2012 24 180

21,3 160

18,7 140

16 120

13,3 100

10,7 80

8 60

5,3 40

2,7 20

0

Oil consumption [kTon] Cost of oil [mio. DKK] Source: SEV’s annual reports

11/4/2013 11

PS – prefeasibility studies:

11/4/2013 12

Average wind speed:

11/4/2013 13 Suðuroy:

• Key figures for Suðuroy: – Consumption 2012: 29.264 MWh Growth: 18.3% – Consumption 2011: 24.717 MWh

– Peak power 2012: 6.5 MW Growth: 30% – Peak power 2011: 5.0 MW

11/4/2013 SEV er fólksins ogn 14

Possible solutions:

11/4/2013 15 Suðuroy – cable to main area:

• 60 kV cable: – Streymoy – 34,7 km – Sandoy – Suðuroy 34,2 km

• 60 kV cables: – Leynum 1,2 km – Hvalba - Trongisvágur 8,5 km

SEV er fólksins ogn 16 ” We simply must balance our demand for energy with our rapidly shrinking resources. By acting now we can control our future instead of letting the future control us” Jimmy Carter 1977

Thanks' for your attention !