Annual Report and Annual Accounts 2009
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Annual report and annual accounts 2009 KT UM DS HV N ØR E V L I R S U M Ð E R R K www.sev.fo O I N 541 705 Electricity grid overview Contents Report from the Board of Directors . 2 Annual report and annual accounts 2009 . 35 The past year . 4 Board statement . 36 Exchange of real estate between SEV Independent auditor’s report . 37 and Vestmanna Municipality . 6 Key figures . 38 Skúvoy new tanks and turbine generator . 6 Key figures . 39 Dwindling construction activity affects Annual report . 40 number of new electricity meters . 7 Applied accounting principles . 42 SEV documentary as teaching material . 7 Income statement . 44 State-of-the-art control room at the Sund plant . 8 Balance sheet as per 31 december NCS . 9 – ASSETS . 45 Drilling to Selatrað starts this summer . 9 Balance sheet as per 31 december Energy Advice Service 2009 . 10 – LIABILITIES . 46 Many anniversaries at SEV . 11 Cash flow statement . 47 SEV and DONG Energy in a pioneering joint venture . 12 Equity report . 48 Industry and authorities briefed on plans for electric cars . 14 Notes to the annual report . 49 Hard-working website . 15 Power production unchanged in 2009 . 15 New substation in Trongisvági . 16 One in four meters now included in the remote reading system . 16 SEV supports the government’s climate policy . 17 SEV at COP15 Power. plant . –. oil-fired . 19 Employee Association, employee days and employee events 20 Health, safety andPower environmental plant – hydro issues . 22 The U .S . ambassador visits SEV . 26 32 interruptions on the high-voltage grid . 27 60kV Substation Distribution grid . 28 Engine overview at 31/12 2009 . 29 Avroknað elsølaPower 2005-2009 plant – wind í MWh . 30 SEV investments 1997 - 2009 . 30 Oil consumption60 in kV tonnes Transmission 1988-2009 line . 31 Maximum load and available power - Central region20 1954-2009 kV Transmission . line . 31 Electricity generation for the entire country by power plant, 2009 . 32 Annual report and annual accounts 2009 Electricity generation10 kV Transmissionon Suðuroy line 1940-2009 . 32 Editor: Leivur Hansen, Public Relations Manager. Electricity generation per capita 1970-2009 . 33 Photos: SEV Electricity generation 6 kV Transmissionfor the entire line country 1954-2009 . 33 Layout and printing: Føroyaprent, Tórshavn, Faroe Islands Daily Load 7 October 2009 . 34 Total SEV annualUndersea 12-month cable generation (1985-2009) . 34 Report from the Board of Directors Global solidarity and renewable in defining SEV’s values and these Parliament at the next Ólavsøka energy efforts are to be completed this sitting (i .e . from July 29) . Demands for greater global solidarity summer . in energy production and emissions Electricity Production Act are increasing . The Faroes should Cooperation and connections Pursuant to the new Act, SEV was participate in binding international The Board strives to strengthen and granted provisional licences for its cooperation to this effect and SEV maintain excellent cooperation with produc tion and network activities on supports the Faroese authorities in our partners, small and big . The December 30, 2008 . These licences Tórshavn Municipality owns the other hole in a cliff face to make a swinging quite a success, around 100 people recognizing international agreements basis for our existence as an organi- have since been extended; meanwhile, half . SEV has the following repres- column of seawater generate high and participated . in this area . za tion is closely linked to our users the Electricity Production Oversight en ta tives on the company Board: low pressure, which makes a turbine SEV wants to be an active partner and partners . Over the past year the Board and SEV continue talks about Kári Jacobsen, Jákup Suni Lauritsen spin and generate electricity . P/F FDS in the Faroese government’s efforts Board has met and cooperate with the final wording of conditions . and Hákun Djurhuus . The Board has Two possible pilot plant locations SEV owns 20 % of this company . SEV to make its targets reality . This great a whole range of stakeholders: The In connection with the 2010 budget, elected Kári Jacobsen its Chairman . have been discussed . An application is represented on the Board by Finn responsibility is a challenge . As by Faroese Minister for Electricity Supply, SEV requested permission to raise The company’s objective is to has been submitted to the owners’ Jakobsen, the current Chairman . The far the largest individual Faroese Johan Dahl, on several occasions; electricity prices by DKK 0 08/kWh. The supply heat, by transmitting waste associa tion of the Nýpan outfield company’s objective is to administer energy producer SEV, in supporting The Faroese Minister for Energy, request was, however, refused by the heat, in the Municipality of Tórshavn in Miðvágur for permission to con- data such as maps and geographical the government in internationally Annika Olsen; Føroya Náttúru- og Electricity Production Oversight Board . as well as to trade and carry out other struct in Nýpuberg in Vágar, and an indexes and to provide services for bind ing commitments, has prepared Umhvørvisverndarfelag (Faroese Since then the parties have engaged in related activities . Plans are under way appli cation has also been submitted public and private entities, as well as for potentially extensive and costly Nature and Environment Conserva tion protracted and in-depth talks on how to expand the company as it must to the owners’ association of the to trade and carry out other related expansions in sustainable energy . Society), represented by Kári Thom sen to interpret and organize the financial make supply available in new areas as Miðjan outfield in Sandur to con- activities . The other shareholders are SEV expects the government to and Hanus Vang; the Admini stration and admini strative frameworks for they gradually come under construc- struct there . The owners in Vágar Føroya Tele, Landsverk (Faroese Office recognize and value its good will, for the Botnur outfield in Vágur; dev elop ing power production . SEV’s tion in the Hoyvík outfield, a Tórshavn rejec ted the application, while the of Public Works), Umhvørvisstovan and play its part in ensuring that Vestmanna Municipality; DONG Energy Board and management have repeat- suburb . Studies are also underway to association in Sandur is willing to (Faroese Environment Agency), national and local authorities toget- Representatives; Repres enta tives of ed time and again that it is difficult dete rmine how more large-scale users discuss such construction further . Tórshavn Municipality and Klaksvík her tackle the challenges ahead – in the British Parliament; Íleggingar grunn- to expand in accordance with Faroese can be connected to the system . Sand ur Municipality has also granted Municipality . both words and deeds . urin fyri Føroyar (Investment Fund for climate policy, if it is not possible to By reusing waste heat from the a construction permit, provided an The target is renewables account- the Faroes); the Faroese Parliament’s establish an adequate financial frame- Hjalla waste incineration plant, and agree ment can be reached with the Expanding hydroelectric power ing for 75% of power prod uc tion on Rules Committee; Knud Simonsen; the work for SEV’s activities . The talks now also from the turbines at the site owners . The Building Committee for the Eiði land by 2020 . An expansion of all Electricity Production Oversight Board; have focused on presenting the condi- Sund power plant, the Faroes avoid The DKK 10 .2 million EU grant is 2 project is made up of Steinbjørn sources of renewable energy will be Sp/f Røkt; and next on the agenda is a tions the financial sector lays down for having to import a significant quantity still available; however, it requires O . Jacobsen, Pauli T . Petersen, Marin required to reach this goal . meeting with Sund Municipality . Laurie major expansions of power grids . of oil, thus the system also contributes full support for the pilot project . Katrina Frýdal and Hákun Djurhuus . S . Fulton, US Ambassador to Denmark, The Electricity Production Oversight to keeping our CO2 emissions down . Project costs will total around DKK Stein bjørn O . Jacobsen chairs the Management and staff has also visited SEV the meeting Board is working on tendering an The tender for building a new boiler 48 million . SEV has stated that it is Committee and Henning Jacobsen is The Board is very pleased with the touched upon topics such as how SEV expan sion of wind production and plant in the Hoyvík outfield has been willing to support the project with up its secretary . work SEV’s management and staff can participate in the efforts to solve has consulted SEV on the matter . launched . to 20% of this amount, however, this The North section of the Eiði 2 pro- are doing to secure a growing share the global climate problem . The phase 1 expansion can probably support hinges on certain conditions, ject has been completed and is now of renewables for the people and Furthermore the Board has visited commence this autumn . SEV will P/F SeWave which include support from the in use . It cost around DKK 63 million . industry of the Faroes . The Board many of the company’s production decide on its arrangements for the up- SEV owns 100 % of this company Faroese Gover nment matching SEV’s An agreement has been signed with has noted the high level of job plants and found that care and coming wind production tender . and its Board is made up of: Páll á financial support . Moreover the the joint venture J . K . Petersen and satisfaction at SEV, and recogn izes diligence are SEV key words . In accordance with the provisions Reynatúgvu, Niels Olaf Eyvindsson, company itself has to obtain the M . T . Højgaard for the South section that a satisfied team of employ- The Faroese Ministry of Industry and procedures of the Electricity George Lane and Hákun Djurhuus .