GOOD NEIGHBOURS Bitter conflict solved

POWERTALK People& POWER Be prepared

NO. 3 2014 | PROVIDING PURE ENERGY

NEW SOLUTIONS Powerful network

FEATURE | PARTNERSHIP Good relations Entering into partnerships allows Statkraft to access new markets, develop expertise and reinvest. Trust, shared goals and values are the keys to success. PEOPLE&POWER Content A MAGAZINE FOR STATKRAFT EMPLOYEES NO. 3 | 2014

A slightly greener India 6 he road is steep and the corners are cuss the value of the partnership with the ON THE NARROW PATH sharp. The road leading up to the management in Bhilwara Energy. What What happens when Allain Duhangan power plant, 2700 is needed to succeed? They point to three Statkraft is renovating several power plants in the 30 metres above sea level, has been factors: First of all, mutual understanding. middle of a popular tourist THE STATKRAFT SCHOOL carefullyT constructed. Who would have Truly understand the other party. Then How to harness energy from area, and construction thought that a run-of-river plant would trust from the very start. Mistrust and lack equipment and tourists wind and solar power plants? be possible here in Himachal Pradesh? of confidence ruin everything. The third is must share the same, Virtual power plants are the narrow path? way to go. The workers tell me that in the beginning, patience, they say, as they smile brightly. they would walk the final 30 kilometres. India has a population of 1.3 billion, They had to traverse this beautiful moun- and the country’s energy needs are mas- tain area just as the local goats do. sive. Currently, the sub-continent runs on 12 34 This was the start of what would coal, which provides 68 per cent of India’s POWERTALK Director PEOPLE ON THE MOVE As become one of the most challenging energy comes from coal power. At least of the Norwegian Water a trainee, Øydis Gadeholt projects in the history of SN Power and 400 million people still lack electricity Resources and Energy has become familiar with Statkraft. Challenging geology, risk of – and blackouts are rampant. Directorate Per Sanderud three countries and various rockslides, and safety measures were The power market and the will to wants more clean energy. business areas. As the new executive assistant, she tough to implement. There were several invest have not been that great, but many is looking for the whole Local partners, familiar tragic deaths during the construction people have greater confidence in the picture. phase. However, Allain Duhangan is now economy now. The new prime minister, 15 with the terrain, the operating as it should, with capacity to Narendra Modi, is ambitious. “We need deliver electricity to several hundred a saffron revolution,” he says. “In order FEATURE: PARTNER- SHIPS Statkraft is country, the markets, and thousand households. to handle the growing energy needs, we entering into more and 36 The power plant manager and the need more investment in solar power.” more partnerships. Why, GOOD NEIGHBOURS What the culture, are essential employees warmly welcome president Modi can hardly be called a climate with whom, and what is started as a bitter conflict between Statkraft and the and CEO Christian Rynning-Tønnesen champion. He is of course driven by the needed to succeed? Tima to success. Utne Iyer (IH) and Jon local community has be- and us who are part of his entourage. ambition to achieve economic growth and Vatnaland (WTP) share come a fruitful collaborative “This has been a pioneer project,” says secure energy supply. However, Modi’s their experience. research project in River Rynning-Tønnesen. “It is definitely a plus solar vision can, in time, lead to a slightly Ljungan, Sweden. to have solid expertise and experience greener India. As part of this, Statkraft is when dealing with such difficult devel- on the lookout for new business oppor- opments as Allain Duhangan. Therefore, tunities and models. Market operations, 24 companies of a certain size are needed to power trading, and solar power pilot SEAFARING HEROES 39 be successful.” projects are just a few of the initatives the When your workplace is STATKRAFT NATION: 150 metres above the BRAZIL Did you know He believes local partners, familiar with teams in New Delhi are working on now. waves, your commute is that Statkraft’s southern- the terrain, the country, the markets, and And our president and CEO assures us slightly different than for most wind farm is located the culture, are essential to success. I dis- that Statkraft has come to India to stay. most. in Brazil?

Editor-in-chief: Bente E. Engesland Editor: Tone Dahle [email protected] Editorial staff: Tone Dahle, Anders Berg-Hansen, Lars Magnus Günther, Gunilla Lundén, Judith Tranninger, Ursula John, Torbjørn Steen, Ellen Stai, Jenny Bull Tuhus, Inge Kvivik Layout and production: Fete typer Cover photo: Tine Poppe Photo page 2: Alf Berg Printing: RK Grafisk AS Circulation: 5000 BENTE E. ENGESLAND We appreciate your input and feedback: [email protected] SENIOR VICE PRESIDENT, CORPORATE COMMUNICATION

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The rotor in Unit 3 at the Sima Power Plant FORMULA E Clean energy is appreciated in new areas. New partner The inaugural Formula E weighs a whopping 450 tonnes. It was MASDAR has acquired a 35 per cent ownership interest in the Dudgeon championship race was held wind farm. Under the new agreement, Statkraft and Statoil own 35 ­recently hoisted for maintenance for the in Beijing, China, in Septem- and 30 per cent of the wind farm respectively. The partnership was ber. The race is exclusively announced during the UN climate summit in New York in September. first time in 35 years. The lift was carried for electric cars. “The United Arab Emirates is the only OPEC country to sell both out by two cranes that had been connected renewable and traditional energy to the world market, and the country At the UN Climate Summit Christian is committed to contribute to the increased use of wind power in order Rynning- Tønnesen (Statkraft), Dr Sultan Al to the engine hall of the power plant. to achieve a more balanced energy mix as we are moving towards a Jaber (Chairman of Masdar), Ed Davey (UK sustainable future with less carbon emission,” says Dr Sultan Al Jaber, Secretary of State for Energy & Climate 450 chair of Masdar, Abu Dhabi’s renewable energy company. Change), Helge Lund (Statoil).

Getting the big guns out NEW KNOWLEDGE

GREAT FORCES are at play in Nedre Røssåga these days. The upgrade of the 1955 power plant, with the construction of a new station, is Climate Statkraft’s largest rehabilitation project this year. Blasting for the knowledge new power station was completed in May, and in August, a gigantic suction pipe was installed. DO WE HAVE TO CHOOSE “As far as we know, this pipe is the largest in Norway that’s between economic growth and connected to a Francis turbine, and can swallow a total of 105 cubic reducing climate risk? This ques- Progress meters of water each second,” says project manager Roald Nilsen. tion is discussed in the article The next milestone is to get the spiral drum in place (pictured at collection “Chasing New Ideas”, at Fosen left). The spiral drum is a cochlear pipe that distributes the water recently published by Statkraft. The collection is a result of the 600 MW of wind power at Fosen in central flow to the guide blades of the turbine. The drum being installed in Nedre Røssåga is no feeble waif. It roundtable discussions organised Norway is one-step closer to realisation by Statkraft in November last year, weights in total 120 tonnes. The spiral drum was constructed in following the inception of Fosen Vind where climate researchers, envi- AS in September. The new company is a China, and just shipping it to Norway and Nordland County was a ronmentalists, business leaders joint venture between Agder Energi, NTE, major operation in itself. and other significant voices in the Statkraft and TrønderEnergi. It will own The rehabilitation of the Nedre Røssåga power plant will increase climate debate were gathered. The three major planned wind farms of which power production, and also improve the conditions for salmon and publication aims to share new Statkraft will be the operator. lake trout. A new bypass valve will ensure minimum water levels thoughts on climate and energy While the engineering and planning with a broader audience. of the wind farms have been progressing in the Røssåga. Statkraft is also implementing significant measures at full speed, the owner companies have in the river system to improve spawning conditions for salmon and http://epub.artbox.no/statkraft/cr all formalities in place to establish the lake trout. company. Kristian Aa is the general manager The outlet for the power plant will be moved further up the river, of Fosen Vind AS, with EVP Jon Brandsar as which means that a stretch of around 600 meters with reduced the chairman of the board. The company will water levels, will now have high and regular water flow. This stretch share offices with Statkraft in Trondheim. According to the development plans, represents 30 per cent of the spawning area in the entire Røssåga construction is scheduled for completion by river system. the end of 2020, in order for the projects The investment framework for the entire project is NOK 1.7 to be included in the Norwegian-Swedish billion. When the project is completed, the Nedre Røssåga and Øvre green certificates market. Røssåga power plants will produce two per cent of Norway’s total The wind farms and power cables power generation. in the Trøndelag Counties are mutually dependent in order to be realised, and time is short. The wind power players and the Water flow Renovations of Nedre grid companies are already in dialogue to Røssåga will improve conditions for coordinate progress. fish in the river.

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Tip of the tongue

limaendrOmnihitatem fuga. This summer, 40 000 tourists made the trek to the spectacular Troll’s Tongue. In the middle of tourist season, Statkraft upgraded two power stations and one pumping station. What happens when constructionK machinery, tourist coaches and personal cars have to share the same narrow roads?

Ellen Stai Shutterstock, Nils Lund, Finn Arve Berget and Knud Knudsen/Arkiv NVIM

REHABILITATION Tyssedal

REHABILITATING power plants in the middle of tourist season offers up additional challenges for Statkraft in Hardanger.

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2

1 3 4 1 | Flexibility The construction road from Tyssedal valley to Skjeggedal valley dates back from 1930, and is narrow and full of corners. When construction equipment and tou- 4 | Tradition for tourism The Ringedalsfossen falls were one of Norway’s largest tourist attractions for many years. The waterfalls were developed and regulated by tunnels rists share the same narrow road, you have to have steady hands on the wheel. 2 | The generators in the Mågeli power plant are re-wedged. Loosening bolts that have been during the construction of Tysso 2 in 1967. in place for 30 years is slow work. 3 | Statkraft’s Hans Henrik Haukås (right) coordinates with Jostein Soldal of Opplev Odda.

his is the yes-bench,” says Hans Henrik Haukaas, as well as work on new cable culverts from Tysso 2 to a To achieve this, they met regularly with representatives them, The Sun Gas Company, was the largest carbide maintenance manager in Statkraft at Tyssedal. new open-air switching facility. At the same time, Odda from the local bus company, the tourist industry, local factory in the world. Norway’s industrial venture had We are standing in the middle of a hairpin Energi was scheduled to perform extensive mainten­ residents and Odda Energi. started. However, the tourist attractions were down corner, on the road up to Mågeli power plant. Far ance of their facilities in the area, and constructing “The planning resulted in the installation of a road the pipes, and the Skjeggedal tourist hotel had to close. belowT us, the sun reflects off the Sørfjord fjord. a new, large switching station. This would lead to signifi- barrier, so we can close the road when we are moving It was almost a century before tourists returned here. “This is where the boys would bring the girls to cant traffic, right at the peak of tourist season. heavy transports,” Riber says. Now, tour operator Opplev Odda has a great relation- propose,” says Haukaas, pointing to the bench. “It is Because of flexibility and good planning, the massive ship with its neighbour Statkraft. difficult to say how far it is to the bottom of the gorge THE TROLL’S TONGUE TOURIST ATTRACTION The traffic spike on the narrow road went very smoothly. “There is a lot of power history in this area; it is part from the bench on the very tip of the cliff. The girl who Troll’s Tongue is a rock outcropping, about 1100 metres of the experience,” general manager Jostein Soldal says. rejected a would-be suitor here would have had nerves above sea level, and 700 meters above Lake Ringedals. TRADITIONS FOR TOURISM Even in the 1800s, Odda “Tourists are very interested when we tell them about of steel. Not necessarily the case for all the tourists who This was a well-kept secret for a very long time, until and Tyssedal were two of the most popular tourist There is a the industrial revolution that started here, which was a slowly ease around the corners, hearts racing. There some local residents received funding to market the destinations in the country. Adventure-seeking nobility lot of power prerequisite for the Norwegian oil industry.” are several places where the road is too narrow for two attraction. In 2009, a few thousand tourists visited Troll’s and upper classes came from abroad, keen to expe- “We haven’t noticed any additional traffic from cars to pass. And, I pity the poor tourist who meets a Tongue. They posted photos of it online, and in a few rience the nerve-racking roads up to the edges of the history in Statkraft. All local parties have focused on making this concrete truck. They might not dare to back up.” years, “Trolls Tongue” had surpassed “Hardanger” as the Hardangervidda mountain plateau, in horse-drawn this area; it work. Tourists usually go up early in the day, and when The path leading to the tourist attraction that is the search item with most clicks. This summer, about 40 000 carriages. In Skjeggedal valley, locals earned some extra the parking lot is full around noon, they have to park Troll’s Tongue starts at Mågeli power station in the tourists walked out on the tongue, after a five­-hour trek money by rowing tourists to the impressive Ringed- is part of the down in the valley. At that time, we close the road, and Skjeggedal valley. Tourists need to either take a bus over steep terrain. The waiting time to walk out on the alsfossen waterfalls, with a free fall of 160 meters. experience. transport tourists by minibus.” or drive from Tyssedal valley. The safety barrier is not outcropping has been as much as one hour. From here, they could admire the Tyssestrengene falls, Soldal is happy that Statkraft has accommodated much to speak of. In some places, all that separates the “Early in the preparations, we focused on how to Europe’s third largest waterfall with a free fall of 300 tourism by constructing a parking lot on their land. cars with an encounter with gravity is a row of sharp organise the traffic,” says Vidar Riber, head of Hardan- metres, twice the height of the Vøringsfossen falls. Sherpas from Nepal are now rehabilitating an old path rocks. When Statkraft was preparing for the upgrade ger power station group. “Although we primarily have to Sam Eyde, the industrial pioneer and engineer, was up the mountainside to the Troll’s Tongue, and Statkraft of the power plant, they also looked into how to avoid make considerations for the task at hand, we don’t want behind the development of the Tyssdal power plant, has airlifted rock and wood by helicopter. encounters on the road. to cause too much inconvenience for tourists, cabin Tyssso 1, in 1906. After a construction period of just a Included on Statkraft’s agenda was re-wedging of a owners and locals who also use the road. So we tried to year and a half, the first high-pressure power plant in NEW CHALLENGES “We’ve made some financial unit in Mågeli power station, replacing the unit switches transport the large components at times when traffic Norway was able to supply two factories in Odda with contributions and created available areas for the and the control facility in Skjeggedal pumping station, was low.” electricity, through seven kilometre long cables. One of tourism industry, because we like the fact that Jostein

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Re-wedging and rehabilitation

MÅGELI POWER PLANT finished in 1956, is the oldest power plant MÅGELI POWER PLANT still in operation in Hardanger. It was renovated in 1978. “We know that after 35 years of operation, most components must be replaced,” says project manager Roar Frantzen. “The slot wedges in the units are made from Bakelite, and will be replaced by PVC wedges, which are more durable.” Work on unit 1 was completed last year. This year, unit 2 is being rehabilitated. Twelve poles are removed for inspection. Winders, me- chanics, installers and work supervisors have plenty to do. “Odda Energi has also replaced three transformers, weighing 60 tons each,” Frantzen says. “When we shut down the units, it is a good oppor- tunity to do this kind of work. Coordinating the work is an important part of the process.” The Skjeggedal pumping station is a renovated power station locat- ed beneath the impressive Ringedal dam. Project manager Olav Erik Børve says they have replaced the unit circuit breakers from 1980. “This is a major job with hired personnel,” Børve says. “We do one unit at the time. Each circuit breaker takes about a month to install. In addition, one pump needs a new frequency converter to regulate the speed. The other pump is operated directly, so it needs only slight modifications. While we are at it, we will install a new fire detection and alarm system and paint the internal ceiling and walls. The chal- lenge is to carry out regular maintenance at the same time, but so far it has worked well.”

Coexistence The main path to Troll's Tongue starts at the parking place by Mågeli power station. Statkraft has expanded the space and facilitated room for tourism in the area.

Soldal and Opplev Odda have managed to bring back tourism and create new jobs here,” Riber says. “This is very good as long as we have a solid relationship and tourism does not interfere with our primary task.” Next year, Tysso 2 is scheduled for rehabilitation. Most of the equipment has to be replaced, and due to the amount of heavy transport, the Skjeggedal road has to be closed at times. Riber is confident it will work well. “People who have been hiking for 10 hours do not want to wait to drive down,” he says. “We will do most of the transportation in the evening and late night.” However, not all changes will cause new challenges for tourists and locals. Next year, the high voltage cables zigzagging across the Second wind Tourism disappeared when Tysso 1 was constructed in 1906. This stunning landscape has since been a literal powerhouse, with three power stations, one landscape will be placed in culverts, making the view even more pumping station and seven major reservoirs and numerous smaller dams spread across vast areas. Five years ago, tourism to the Troll’s Tongue got its second wind, with stunning for the tourists, Statkraft employees and locals in the 40 000 visitors this summer alone. Skjeggedal valley.

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POWERTALK

Taming the forces of nature

Per Sanderud, director general of the Norwegian Water Resources and Energy Directorate (NVE), has a clear message: “Weather will be wilder, warmer and wetter. Climate changes are apparent. We need a completely different extreme weather preparedness now than in the past,” he says. He and the NVE are also using their expertise to help other countries establish preparedness against floods, rock and landslides and avalanches.

Bente E. Engesland Morten Brun

er Sanderud grew up in the Norwe- years. Do you have any lessons for the authorities PER SANDERUD gian town of Hamar, on the banks of in other countries? Lake Mjøsa, Norway’s largest lake. “We contribute in many places because He is used to water. He has been the of our long experience and our expertise. Pdirector general of the Norwegian Water On behalf of the Norwegian Agency for AGE: 60 Resources and Energy Directorate (NVE) Development Cooperation (NORAD), we POSITION: Director general, NVE since 2011, a unique government admin- are present in 15 countries. In Myanmar, we EXECUTIVE EXPERIENCE: istration agency compared with similar are working with connecting the prepared- Various positions in five Communications senior entities in other countries. ness organisation and the power compa- government ministries, vice president Bente E. “Water forms a blue thread in everything nies. We are present in Bhutan in the including permanent sec- Engesland speaks with NVE does,” he says. “Norway’s energy Himalayas and many African countries, retary in the Ministry of NVE director general Per Transport and the Ministry Sanderud about extreme supply is based on water. So more rain and such as Liberia, Mozambique and Tanzania, of Trade and Industry. weather, floods, climate more extreme weather have a ripple effect. as well as in Asia, in the Philippines. President of the EFTA Sur- change and focus on The power utility companies, the roads Statkraft is present here as well, and we renewable energy. veillance Authority (ESA). administration and railways, everyone is believe that investors will benefit from Vice chair of the Board impacted. More and heavier rain in the improved framework in the countries in of Directors of Flytoget years ahead will increase the risk of natural which you invest. NVE develops models (airport train). damage.” and water profiles that make it easier for EDUCATION: Social eco- Climate change has made NVE a hot authorities to plan and regulate. This is nomics from University topic, and Sanderud has noticed the change. exciting and important work!” of Oslo. Visiting scholar Stanford University. There is more interest and more pressure. Sanderud believes the global climate FAMILY: Married, three More than 100 hydrologists analyse and changes will characterise NVE’s activities children. monitor each minute of the day. NVE’s more and more. Whether it is increased assessments and forecasts are in demand, political pressure for an international both at home and abroad. climate agreement, we are talking a very long-term perspective even though busi- EXTREME WEATHER In recent years, we nesses are spearheading the green shift. have seen major incidents involving extreme How does this affect your work? weather across the globe. We remember the violent “In NVE, we are working more and more and destructive Hurricane Sandy in New York. with the Norwegian Metrological Institute Tropical cyclone Haiyan in the Philippines. This and the Bjerknes Centre for Climate year’s flood in the UK and the wettest winter there Research. We follow temperature changes since the 1800s. Snow in Tokyo, more than in 45 more closely – and we expect milder

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FEATURE PARTNERSHIP POWERTALK We expect milder winters. With more precipitation, we will see more floods, slides, avalanches, and erosion. For you, and other power producers, it is essential that we have this insight. PER SANDERUD, DIRECTOR GENERAL, NVE Focus on PARTNERSHIP winters. With more precipitation, we will see possible terrorist threat against Norway. This threat managers be in the thick of it from time to Statkraft continues to enter into new partnerships. The purpose more floods, slides, avalanches, and erosion. did not materialise into any actions, but we were time. Part of what drives me is to understand is to free up capital, acquire expertise, or to gain access to For you, and other power producers, it is reminded that the world has become increasingly the issues and their content. It is stimulating.” essential that we have this insight. I think unstable. What did you in NVE think and do? Statkraft has a significant position as Europe’s new markets. Everyone who has tried knows that living the biggest changes we will see in Norway “Yes, there is a greater risk of instabil- leading producer of renewable energy, and is together requires effort. So, what is required to make a will be in the north. We are seeing stronger ity. I followed the situation on a daily basis expanding its activities in many countries outside winds, and are noticing the risk which while the threat level was elevated, and we Europe. What are your views on our role? relationship flourish, and what happens in a break-up? increase disruptions in the power grid.” conducted thorough analyses of the extent “Statkraft is a very important contributor Society and we as consumers are also increas- of which NVE and the energy sector could to preventing climate change, and for secur- ingly vulnerable to power disruptions. We cannot be affected, although we do not have nuclear ing more renewable energy for the world. We afford blackouts! power in Norway. It is important to get on cannot keep the two-degree target by just “No, blackouts in modern society can be top of it from the very start. Particularly, I becoming more energy efficient. We need fairly dramatic. My worst experience as head focused on the risk of computer crimes that more renewable energy. I believe Statkraft of the NVE was storm Dagmar in Western can target the petroleum and energy sectors. contributes with solid experience and exper- Norway in 2011. In the middle of Christmas, We store a lot of sensitive information now, tise, which also benefits other markets and almost 1.2 million Norwegians intermittently and everything is digital. We must be ready countries.” lost electricity. Dagmar also reminded us to handle several types of emergencies.” that powerful gusts could cause trees to fall MORE WIND POWER IN NORWAY At the over more easily. There is a lot to think about LEAD BIG As leaders, we also need to operate in same time, we have an energy surplus in the Nordic when preparing, but then again, we cannot a more complex environment than before. There is region, and there is a risk of over-investing. What is prepare for all possible incidents in nature.” increased globalisation, the pace has quickened, your perspective on wind power development plans and there are strict performance requirements. You in Norway? READY FOR EMERGENCIES Our talk have extensive experience at top-level man- “NVE, as the regulatory authority, is tech- returns to risk and crises. During a major agement, and you are now at the helm of a key nology-neutral. Until now, hydropower has crisis, Statkraft will be a part of NVE’s crisis organisation in Norway. What is most important to been cheaper in Norway. However, we are organisation. We share some challenges. you as a top executive? processing an increasing number of license In Statkraft, we have strengthened our prepar- “A manager has to lead big, not micro- applications for wind power developments, edness organisation in recent years. This summer, manage. I also think it is very important to while there is a lack of willingness to invest. several of us in the group crisis team were pulled stimulate others to do a good job. My I am a great believer in more wind power in from our summer bliss when the Norwegian co-workers need my trust! Trust is every­ Norway. The Fosen/Snillfjord project could Police Security Service (PST) issued a warning of a thing. I also think it is important that be significant. It is important to invest in Norwegian wind power to increase expertise as well. The Swedes are way ahead of us on this. They have realised how important it is to My day: I have a quiet start. I reluctantly get up at 07.15. My energy industrialise this focus. I am fully aware that ENERGY level gradually increases throughout the day, until I collapse at midnight. there are different framework conditions in Norway and Sweden. However, more wind power would be good to balance the picture. I am an optimist and a firm believer in a more EnergiEnergy international and flexible energy market!” 10 The NVE director general is also an opti- 8 mist at heart. He enjoys cross-country skiing and biking. Not too long ago, he went for a 6 long ride in the forest around Oslo. Suddenly 4 he had a flat tire. But who appeared to help with the problem? None other than eight 2 people on the Statkraft company bike team. 0 TheDøgnet day They had all the equipment he needed to fix his bike, and even pumped up the tire. A little luck goes a long way.

14 STATKRAFT NO 3 2014 NONR 3 2014 PEOPLE & POWER 15 FEATURE PARTNERSHIP

You, me and INTERNATIONAL HYDRO POWER

Tima Iyer Utne believes a good partner shares your values and has clear ambitions. As the senior vice president of Southeastern Europe and South Asia, she has had her fair share of happy relationships and one messy divorce.

Jenny Bull Tuhus Morten Brun and Tine Poppe Good Energy From left: O. P. Ajmera (managing director Malana Power), Tima Iyer Utne (senior vice president, Southeastern Europe and South Asia, Statkraft), Christian Rynning-Tønnesen (president and CEO, Statkraft), Rita Jhunjhunwala and Mr. Ravi Jhunjhunwala (chairman, Malana, chairman and owner of Bhilwara) at Vang Farm.

he air at Vang Farm in Hedmark SEVERAL MODELS Bhilwara is one of two hand, developed the Malana power plant as SOLVING OR DISSOLVING Finding the presence during this phase of the project, FACT County is buzzing with chitchat and utility companies that Statkraft has entered a solo project, and Allain Duhangan in part- right partner, developing an agreement and was successful in having the Indian Bhilwara Energy laughter. A group from the utility into a partnership with in India. The second nership with us. The plants are operated by framework and creating a fruitful collab- partner see the value of our approach to company Bhilwara has come to is Tata Power, a subsidiary of the interna- our joint venture. However, we want to take oration with clear roles and shared goals HSE,” says Iyer Utne. “This was a positive NorwayT in connection with the meeting of tional conglomerate, the Tata Group. on a more active role and we are currently is a time-consuming process. For some, development of the partnership, and trust the board of directors in the joint ven- “India is a big country, and when we in a good process. partnerships are therefore a necessary evil – was maintained.” BHILWARA ENERGY is the utility com- pany of the Indian industrial conglom- tures Malana Power Company and Allain selected Bhilwara in 2004, our objective Employees involved in Statkraft’s whether they are entered to free up capital Other times, it is better to dissolve the erate LNJ Bhilwara Group. Owns in joint Duhangan Hydropower. was to find a local partner with access to market operations in Delhi have worked or to gain access to projects or markets. partnership, as was the case with Austria’s venture with Statkraft: “Spending time together and building hydropower projects,” Iyer Utne says. for Malana for some time, with daily power Different internal corporate cultures and EVN. Statkraft was invited to take part in a personal relationships is extremely impor- The two strategic partnerships are optimisation and trading on the IEX power local conditions in the country of operation 50/50 joint venture for hydropower devel- MALANA POWER COMPANY Bhilwara­ tant to create successful partnerships. Trust examples of various strategies for entering exchange. During the September board can further complicate partnerships. Some- opment in the Devoll Valley in Albania. EVN Energy (51 per cent), Statkraft (49 per is the key factor for success,” says Tima Iyer collaborations. meeting, Statkraft’s market team became times, these problems can be solved. Other had been awarded the development licence cent), which owns and operates: Utne, senior vice president of Southeastern “With Tata Power, we conduct innova- responsible for the daily optimisation of the times it is better to go separate ways. in the area, and through the partnership, MALANA HYDROPOWER PLANT Europe and South Asia in International tion and have complimentary expertise,” Allain Duhangan power plant as well. A prime example of the former, is our Statkraft gained access to a new and inter- Capacity 108 MW, annual production Hydropower in Statkraft. she explains. Tata works within the power “The feedback from Bhilwara indicates partnership with Bhilwara, a collaboration esting market. However, the partnership was 370 GWh. Earlier this year, she became responsible industry and is the second-largest private that they see the value of our expertise. By that has stood the test of time. There were dissolved after a few years. for India following the integration of SN hydropower player in India, but the com- proving what we know in operations and several fatalities during the Allain “We agreed to go our separate ways, ALLAIN DUHANGAN HYDROPOWER Power, and has met her Indian counterparts pany does not have any recent experience optimisation, we create the foundation for a Duhangan development. because EVN did not want to make any major PLANT Capacity 192 MW, annual many times already. from developments. Bhilwara, on the other more extensive collaboration.” “SN Power invested a lot of time and investments at the time,” explains Iyer Utne. ­production 802 Gwh.

16 STATKRAFT NO 3 2014 NO 3 2014 PEOPLE & POWER 17 FEATURE PARTNERSHIP

Why partnerships?

Statkraft’s partners span from local landowners and small-scale hydropower producers to investment funds and international industry groups. Each partnership serves a purpose.

ACCESS TO PROJECTS

1 STATKRAFT CAN gain access to new projects and EXAMPLE: In Central Sweden, Statkraft has teamed Trust Tima Iyer Utne emphasises the importance of many and good meetings to make a partnership work. The foundation must always be an extensive agreement framework based on shared goals and values. markets through partnering with players such as land- up with Europe’s largest private forest owner SCA. The owners or licensees. joint venture Statkraft SCA Vind AB now has two of four planned major wind farms (totalling 514 MW) in operation in Jämtland and Vesternorrland counties on SCA land. Statkraft has a 60 per cent stake in the joint In a relationship-driven country, it can be perceived as a breach of venture, while SCA holds 40 per cent. trust to discuss an exit clause during negotiations.

SHARING RISK AND DEVELOPING EXPERTISE

SUCCESS FACTORS Tima Iyer Utne does establishing a joint venture. “Our expe- The solution for the Devoll project in not deny that the process of dissolving the rience is that in the past, the importance Albania was that Statkraft acquired 2 STATKRAFT CAN achieve competence building, risk EXAMPLE: The Sheringham Shoal offshore wind farm partnership was demanding for all parties of clear agreements on governance has EVN’s shares in 2013. Statkraft is cur- sharing and added muscle to realise major projects (317 MW) is owned 50/50 by Statkraft and Statoil involved. been ignored,” Iyer Utne says. “How much rently developing the project alone. through industrial partnerships. The partnerships through the Scira Offshore Energy Limited joint venture. “It was incredibly demanding for autonomy should the joint venture have? To include cooperating with companies possessing The project is based on Statoil’s offshore experience the teams to know that the project was what extent should the parent companies complementary knowledge and companies with and Statkraft’s expertise as Europe’s largest producer constantly being reconsidered,” she says. be involved in daily operations? What hap- *** ­overlapping expertise. of renewable energy. Statoil has been the operator of “When a partnership does not work, the pens if one of the parent companies comes the development phase, while Statkraft is responsible costs could be reduced motivation and you under pressure? How should the efforts of for operations. can end up with dysfunctional teams.” the parent companies be rewarded? How Back at Vang Farm, the Bhilwara and Iyer Utne stresses the importance of can one avoid redundancy if the parent Statkraft representatives have spent shared goals and ambitions. companies have overlapping expertise? And the break from the meetings stretching “It is essential to establish a robust so on …” their legs and taking group photos in the FREEING UP CAPITAL AND HIGHLIGHTING VALUE CREATION strategic platform based on shared values In some countries, it can be difficult Norwegian summer evening. In addition and goals for the project. The platform must to establish agreements that anticipate a to the obligatory meetings, concerts, encompass strategies to address various possible break. museums and dinners are planned for 3 PARTNERSHIPS ESTABLISHED with financial players EXAMPLE: This summer, Statkraft sold 49 per cent forms of pressure. “Conflict and disagreements can arise in the visitors. Each time the parties meet, free up capital for developing projects. This way, of three land-based wind farms in the UK: Alltwallis, “As soon as you start disagreeing how to any project, so it is important to discuss and understanding and knowledge of the Statkraft can apply its expertise and capacity to create Baillie and Berry Burn to Gingko Tree Investment handle issues, you have conflicts that may agree on an exit clause in the agreement,” other company culture and country grow, growth and value. Ltd. The agreement enables Statkraft to reinvest in cause delays and/or cost overruns for the says Iyer Utne. “In some countries, how- and new ideas are conceived. new projects, while retaining its industrial role as the operating company of the wind farms. The three wind project in question,” Iyer Utne says. ever, this can be seen as a breach of trust. “For this reason, these meeting are not farms are organised in a new holding company, Wind Generally speaking, it can be a challenge just nice, but very important,” Iyer Utne UK Invest Ltd. EXIT CLAUSE The choice of govern- operating in countries with high emphasis says. ance model is also very important when on relations.”

18 STATKRAFT NO 3 2014 NO 3 2014 PEOPLE & POWER 19 FEATURE PARTNERSHIP

The art of compromise Creating TAILWIND

There are months and months of intense nego- Not many years ago, Statkraft wanted to own their UK wind tiations behind a partnership agreement. An farms. This strategy has now turned upside-down. “Partnerships ­important aspect of the negotiators’ job is to are the future,” says strategy senior vice president Jon Vatnaland speak for the counterpart in their own company. of Wind Power and Technologies (WPT).

“Negotiations are often about emotions. The parties involved need to Jenny Bull Tuhus Jimmy Linus feel that they are participating in something that is important to them,” says Bjørn Strugstad, project manager for business development and strategy in Wind Power & Technologies (WPT). He has extensive experience in this area. He has been a key player in the partnership agreement for Fosen Vind, where Statkraft partnered artnerships spread risk and provide utilised when applied to the areas where It is important for Statkraft that the part- with Norwegian power companies NTE, Agder Energi and TrønderEnergi us with access to new projects, they create the most value,” Vatnaland says, ners also carry their part of the risk. to develop three wind farms. He also participated in talks with Statoil and not least, it is a way to free up adding: “Divestments are also an efficient “This has been a core issue in all regarding the Sheringham Shoal and Dudgeon offshore wind projects. resources and capital,” says the WPT way of demonstrating early value creation partnership negotiations I have been “An important aspect of the job is to speak for the counterpart in Pstrategy senior vice president. in a project.” part of, and particularly important when your own company,” he says. “Negotiators gain insight into what is This summer, Statkraft announced that negotiating with financial partners,” says important for our partner and where we should make a compromise.” it was selling its ownership interests in MARRIAGE OF CONVENIENCE Negotiat- Vatnaland. three land-based wind farms in the UK. ing a partnership is a slow and meticulous DIFFERENT STROKES The negotiating process is always different. Statkraft remains the operator of the wind process, involving big teams on both sides. THE IDEAL PARTNER There are apparent “It is different negotiating with large international companies than farms, with responsibility for operations The agreements number hundreds of docu- benefits of owning and operating on your with regional players,” explains Strugstad. “No matter their size, each and maintenance, market access and power mented pages. own, as you can utilise the company’s company has its own culture, and to a certain extent, this culture is sales agreements. “These are marriages of convenience, own systems and project tools. Vatnaland specific to their industry. When we negotiate with Statoil, their approach “Our partnership with Gingko Tree with detailed regulations through careful points out that there are advantages to is characterised by the mechanisms of the oil industry.” Investment Ltd is financial in nature,” says agreements,” Vatnaland says. “However, stepping outside to take a good look at Creating a good atmosphere for the discussions is essential, as Vatnaland. “As a result of this agreement, the human factor must not be lost. Trust oneself from time to time. conflict and disagreements during the negotiations are a given. “When we are able to reinvest in new projects. This is a key factor. So it is important to have a “Entering a partnership is a process that you are stuck, it is important to sit down together and find a solution,” is the first of several planned financial part- close dialogue and many meetings during a requires discipline. We are forced to esti- says Strugstad. nerships for Statkraft.” partnership process.” mate costs for all activities, and we need to The issues on the table are big and demanding, as is the distribution Partnership between industrial parties be professional from A to Z.” of risk and responsibility. And how to handle a possible exit. “A lot can happen in a multi-decade project,” adds Strugstad. VALUE CREATION In other words, selling can often be more demanding than finan- And the word “professional” is probably “You have to make agreements for many types of incidents, including ownership interests is something we will cial partners or landowners, especially with characteristic of how the outside world improbable scenarios.” see more often. overlapping expertise. Who will have which views Statkraft. According to Vatnaland, “Entering partnerships is a desired strat- functions? Who will be the operator, who Statkraft is, to many, the ideal partner. MANY INVOLVED When Statkraft enters into a partnership, many egy supported by the board and executive will make what decisions? “I do think we are regarded as a strong departments in the company are involved. There is also a need for management in Statkraft,” says Vatnaland. “All these questions must be clarified company with long traditions and solid many different types of experts during the process. This means that “The model we choose depends on what in minute detail in the agreement frame- expertise with a renewable profile to the teams have a broad composition. All transactions in Statkraft are our objective is.” work,” Vatnaland says. “Normally, we top it all off,” Vatnaland says. “During carried out in collaboration between the business areas and Mergers Utilising the resources is an important establish a joint venture to operate the turbulent times, it is not a disadvantage and Acquisitions (M&A). objective in financial partnerships. project. At the same time, the parent com- to be owned by the Norwegian state. As a “We receive a mandate from the project owner, and establish a pro- “It is about moving capital from facilities panies want to make use of their expertise. London-based investor told me recently; ject that handles the negotiations and development of the agreement,” we have constructed to facilities we want to This is solved by lending personnel to the ‘You guys tick all my boxes’.” says Anders Prietz, SVP head of Corporate Transactions. construct. Our expertise and capacity is best joint venture.” In addition to representatives from the business unit, the project organ- isation comprises personnel from accounting, tax, investment analysis, legal and M&A, which also contributes by finding potential partners. “During project Hurricane our mandate was to identify financial investors for three of our wind farms in the UK”, says Prietz. “During the process, we made use of the Rothschild Investment Bank, which invited potential buyers to an auction process.” Ten Statkraft employees were involved in the project team, which pursued this for eight months. In July of this year, the announcement was made that Statkraft had entered into a partnership with Gingko. The goal was achieved.

20 STATKRAFT NO 3 2014 NO 3 2014 PEOPLE & POWER 21 FEATURE PARTNERSHIP

A successful collaboration

FAKTA FOR THE FUTURE

Statkraft's partnership with the German forecasting company Energy & meteo STATKRAFT > market leader in systems had humble beginnings in 2011, with weather data. The partnership is renewables in now presenting innovative solutions, providing renewables with much needed Germany > first company to predictability and availability in the German market. implement Market Premium in 2012, a solution stimulating Inge Kvivik Shutterstock and Inge Kvivik long term renew­ ables investments > develops virtual power plants in part- nership with Energy & meteo systems

ENERGY & METEO SYSTEMS > global market leader in wind and solar power forecasting for the energy market n an office in a quiet neighbourhood on the open market. Assisted by the expertise > delivers innovative the outskirts of Oldenburg in Northern from Energy & meteo systems on fore- solutions for auto- Germany, two smiling men take their casting, combined with Statkraft’s market mation and integra- seats. Outside, the autumn sun is break- expertise, thorough computer programming Both companies have tion of renewables in Iing through the clouds, bathing the rustling and a healthy dose of innovation, they the market leaves in golden light. And it is the weather, found a way to make all the small suppliers > develops virtual progressive environments power plants in and the ability to predict and exploit it, that commercial as a large and reliable player in partnership with has brought the two men together. the energy market. This is how the invisible that want to contribute to Statkraft We are in the head offices of Energy power plant was born. progress. & meteo systems, and the two men are “The virtual power plant is a concept ABOUT THE Alexander Küppers from Statkraft's direct created to exploit the flexibility in wind PARTNERSHIP marketing team and Ulrich Focken, who and solar in an optimal manner,” explains > regulated by a ser- vice level agreement founded Energy & meteo systems in 2004. Focken. Today, the company is the world leader In 2013 Germany introduced a new law > software owned by 1 Energy & meteo in wind and solar power forecasts for the stating that all small-scale power plants systems energy market. Statkraft and Energy & must be remote controlled – something that meteo systems cooperated to develop the Energy & meteo had already been doing for virtual power plant, a tool suited to service six months. never pre-destined, but rather developed the energy demands of tomorrow. Accord- naturally because the alliance worked so ing to the two, major changes are already CONSTRUCTIVE PARTNERSHIP Küp- well. They believe the secret to the success visible in Germany. pers and Focken add that there are many is based on shared values and visions. DO YOU WANT TO KNOW MORE "Currently, more than 25 per cent of the reasons for the partnership’s success. Both “We quickly realised that we had a lot in Learn more about the 2 3 4 total energy consumption comes from wind, companies had a flexibility allowing full common,” says Focken. “Both companies virtual power plant in solar and bio gas energy,” says Küppers. focus on the job at hand from day one. focus on opportunities, not limitations. And the Statkraft School on “Wind and solar energy determine German They also managed to create a constructive both companies have progressive environ- page 30 – the Statkraft electricity prices now." environment with a fun workplace, through ments that want to contribute to progress. School. close cooperation and nurturing openness In addition we share a desire for innovation, EVERY LITTLE BIT HELPS Germany has and with room to learn from each other’s and not always primarily profit.” plenty of small-scale power producers. mistakes. This creates mutual trust between Küppers adds: “Of course we look for These are often regular farmers and home- the co-workers. financial gain, but not just that. Profit is well 1 | Bright future Almost 100 solar power produers are part of Statkraft's virtual power owners who have invested in electricity and good, but not at any cost. If a project plant. 2 | Computer power The virtual power plant is operated from Düsseldorf. ­­ 3 | Partners Alexander Küppers of Statkraft and Ulrich Focken of Energy & meteo generation. Statkraft's direct market team SHARED GOALS According to Küppers provides us with important knowledge, we systems. 4 | Weather Vast amounts of weather data are needed to create good work with purchasing energy from these and Focken, the close partnership between will consider it, even without prospects of energy forecasts. producers, optimising it, and selling it on Statkraft and Energy & meteo systems was short-term financial gains.”

22 STATKRAFT NO 3 2014 NO 3 2014 PEOPLE & POWER 23 PHOTO FEATURE SHERINGHAM SHOAL

Down on the wind farm

The wind may be free, but operation and maintenance of the 88 wind energy turbines on Sheringham Shoal requires significant effort. Each day, 48 men are ready to brave the sea in four powerful boats, weather permitting.

Morten Ryen Jimmy Linus and CHPV

24 STATKRAFT NO 3 2014 NO 3 2014 PEOPLE & POWER 25 PHOTO FEATURE SHERINGHAM SHOAL

Down on 4 the wind farm

1

he Sheringham Shoal wind farm is located in the shallow waters off the coast of Norfolk, England. In order to have as efficient operations and maintenance as possible, the operations base is locatedT in the nearest town on the coast, the small village Wells-next-the-Sea. A dedicated port has been constructed to handle the four boats transporting crews out to the wind farm. The major challenges for the operation of the Sheringham Shoal wind farm are North Sea weather and local conditions. The coast is riddled with long sand banks and several meters’ difference between ebb and flow. In order to reach the open sea, the boats need to pass through a long canal, which is only deep enough when the tide is in. This means they are able to sail out or in every 12 hours, and these times change from day to day. And as if that is not enough, waves cannot be higher than two meters when the crews climb from the boat and over to the ladder lead- ing up to the turbine. 2 This means that each day has to be planned ­carefully. The tide tables decide which time windows are open for travelling out to the wind farm. Weather forecasts decide whether it is safe for ship and crew to go out and to work. Is there enough visibility? How high is the swell? What about wind? And how will the weather change during the day? There are many factors that have to be exactly right, and safety is always the number one priority. During the winter, it is only possible for the crew to go out for three days at a time. Weather is more stable during the summer months, allowing the four boats and 48 crew to be out at sea for days. The work is important. With all the turbines in operation, Sheringham Shoal delivers electricity to 220 000 households in the UK. Even more British homes will receive their electricity from wind. Statoil and Statkraft have received the green light to develop the Dudgeon wind farm, just 20 kilometres north- east of Sheringham Shoal. It will provide renewable 1 | At the break of dawn, much needed spare parts are transported from the warehouse by the operations personnel down to the harbour, where they are loaded on board the electricity for another 400 000 British homes when it boats going out to the wind farm in the morning. 2 | Maurice McManus grabs a cup of coffee on his way out to the wind farm. 3 and 4 | In order to carry out repairs and 3 reaches full operation towards the end of 2017. maintenance, the crew has to climb from the boat and up the ladder on the outside of the wind turbine.

26 STATKRAFT NO 3 2014 NO 3 2014 PEOPLE & POWER 27 PHOTO FEATURE SHERINGHAM SHOAL

6

7 5 | Safety has top priority when the maintenance crews climb the exterior of the turbine leg. 6 | The 88 wind energy turbines take up an area of 35 square kilometres, and are 5 an impressive sight, even at a distance. 7 | «Dorothea» can handle the swell, but big waves make it difficult for the crew to get from the boat and on to the wind turbines.

28 STATKRAFT NO 3 2014 NO 3 2014 PEOPLE & POWER 29 THE STATKRAFT SCHOOL VIRTUAL POWER PLANTS

THE STATKRAFT SCHOOL VIRTUAL POWER PLANTS

THE VIRTUAL POWER PLANT AROUND 1000 WIND FARMS, 100 SOLAR POWER PRODUCERS, 12 BIOMASS POWER PLANTS AND Every little bit helps EIGHT HYDROPOWER PLANTS 7000 MW GENERATE A TOTAL OF 7000 MW When taming renewables on a large scale to sell on the energy market, a number of challenges surface. The solution

is a virtual power plant. ON 28 AUGUST 2014, GERMANY’S SOLAR POWER GENERATION EQUALLED NORWAY’S DAILY POWER Inge Kvivik Annette Holm Grøsland CONSUMPTION RECORD IN 2013

BIOMASS POWER PLANT HYDROPOWER PLANT hanging weather causes major We use the virtual power on the amount of power available for sale at fluctuations in the availability of any given time. solar and wind energy. As a result, plant to reduce production integration with the energy market when a power surplus AUTOMATISATION The process is man- Cbecomes problematic, as the market needs aged from Statkraft’s dispatch centre in a predictable commodity that can be offered threatens to create negative Düsseldorf. The virtual power plant con- WIND FARM on a large scale depending on demand. It is tinuously receives weather data from each this market adjustment Statkraft has found prices in the energy market. individual power supplier in the network. SOLAR POWER PLANT a solution to through its virtual power plant This constant flow of weather data is used to project in Germany. further improve the forecasts that deter- “When we started this work in 2012, mine energy production. The virtual power there was no continuous contact with the plant can also adjust production in the blink hundreds of wind energy turbines in the ENERGY FORECASTS As the weather of an eye. grid, and we had no idea how much they changes, there has been significant uncer- “We use the virtual power plant to were generating,” explains Alexander Küp- tainty associated with sales of most forms reduce production when a power surplus pers, senior developer, in Statkraft’s Direct of renewable energy. In order to know threatens to create negative prices in the Marketing team in Düsseldorf. how much power is available for sale at energy market,” says Küppers. “We can “Today our solution delivers more than any given time, major resources have been send a signal to each wind farm, determin- DISPATCH CENTRE WIND FARM THE POWER GRID 7 GW of wind and solar energy.” allocated to estimate the volume of power ing how many MW each one should pro- generated. In order to achieve the most duce. This enables the virtual power plant to DECENTRALISED ENERGY RECOVERY accurate forecasts, the estimates are based balance supply and demand.” Wind, solar, bio, and hydropower are gener- on massive amounts of weather data. A ated by a number of small-scale producers number of weather forecasts for leading FLEXIBLE FUTURE The goal is that the WE HAVE THE POSSIBILITY spread across Germany. The virtual power meteorological institutions are combined, virtual power plant will integrate industrial to send a signal to each single plant connects thousands of these small and connected with a statistical probability consumers and storage solutions as well. wind farm about how many MW power producers. This enables the market based on past weather. Included in all this This way, the virtual power plant will make to produce. That way the virtual to trade energy from one large, reliable sup- are also special warnings on extraordinary solar and wind energy just as flexible and power plant is able to balance DEMAND GENERATION POWER PRICE plier, and the power producers do not have weather phenomena, such as the impact of practical as conventional energy sources. supply and demand. PROGNOSIS PROGNOSIS PROGNOSIS to sell the power themselves. storms, which are predicted more accu- The virtual power plant will soon be “There are more than 1 000 wind energy rately than before. The forecasts, which are able to deliver regulated power from wind plants in our system, with an installed for five days at a time, are updated every and solar energy – the next important step capacity equivalent to about seven nuclear 15 minutes, and provide the virtual power towards complete integration of fluctuating reactors,” Küppers says. plant with accurate real-time information energy sources in the power market.

30 STATKRAFT NO 3 2014 NO 3 2014 PEOPLE & POWER 31 CURRENT AFFAIRS PEOPLE

PEOPLE

Statkraft is involved in activities in THREE NEW MEMBERS Career jumpstart more than 20 countries, and at the were voted on to Statkraft’s Board of Directors: Hilde THE STATKRAFT TRAINEE PROGRAMME has accepted eight young men and women. For the next two years, they beginning of the year, employed a ­Drønen, Elisabeth Morthen will work in four different areas of the company, according to their background and the company’s expertise needs. and Harald von Heyden. This year’s trainees hail from five different countries and have diverse education, primarily in technology and total of 3 735 people from 50 different Between 1999 and 2003 von finance. They share a common wish to work with renewables and in Statkraft. Heyden was Head of Statkraft nations. Twenty-three per cent of Continental Europe. 3735 Statkraft’s employees are female.

OVER THE COURSE of nine hectic summer weeks, eight SOLUTIONS A-PLENT students have worked intensely with the great questions AND ANIMALS facing the future of the renewables industry – battery storage technology and business opportunities. The international student group presented its findings to Windy celebrations Statkraft’s executive management in Oslo mid-August. Game on “We are pleased to make specific recommendations THE WIND WAS A TRUE TEAM PLAYER as the Berry Burn wind farm for how Statkraft can utilise battery storage technology DURING THE CONSTRUCTION of in Scotland invited the local community to celebrate the opening today and in the future,” Silje Merete Grønning, one of the Hitra wind farm in 2004, the of the facility earlier this autumn. Kites in all the colours of the the eight students, said in her introduction. deer moved away from the rainbow danced in the wind, brightening an otherwise grey and President and CEO Christian Rynning-Tønnesen was adjacent areas. They returned cloudy day. The weather did not prevent 450 guests from turning very pleased with the presentation. after the construction period. After up to the event, which had activities for the entire family, such as “I believe what we just saw is the beginning of some- ten years of operation, there are a folk dance, face painting and releasing balloons. The Berry Burn thing big. We will now assess all the proposals, and I no reports of hunting diminishing. wind farm is located south of Forres in northern Scotland. hope to pursue several of them.” Rather the opposite, the roads The facility comprises 29 wind energy turbines, with Hosts for this year’s summer project were Continental built on Mount Eidsfjellet have a total installed capacity of 66.7 MW. Net annual New solutions The summer project group and CEO Energy Development (MCD) and Business Development made the hunting areas more production is estimated at 183 GWh Christian Rynning-Tønnesen. (MTB) in Düsseldorf. accessible. Photo: Shutterstock

THE HITRA WIND FARM in Central very pleased with the partnership with When it was opened by then Minister of because of that, we are very proud of it. From scepticism Norway invited the local community to Statkraft. Trade and Industry Børge Brende (Con- Ten years of operation has proven that the celebrate its ten-year anniversary earlier “The municipality has granted a servatives) in 2004, it was Norway’s largest wind farm has the appropriate location, to popular feature this autumn. There were activities for the license for the development of more wind wind farm. Today, it is the fifth largest in was thoroughly engineered and well entire family, an uphill race, food and energy turbines,” says Haugen. “We did the country, and the fifth largest of all of operated by Power Generation.” dancing. Hitra Mayor Ole Haugen held a this because it is important to confine the Statkraft’s land-based wind farms. The Hitra wind farm gets most of its congratulatory speech, and revealed that impact on nature to one area. In the rest of The Hitra wind farm has not received wind from the west and southwest. Wind he had been a sceptic when he first heard Europe, which Norwegians must take into the same attention as the wind farm on the direction and topography vary between about the project. consideration, the alternatives are coal neighbouring island, Smøla. Stian Ander- the turbines. Turbine 24 is the wind farm’s “I had to think it over for quite a while, and nuclear power. So I think it is great we sen, asset manager for Statkraft’s Norwe- biggest producer, and been given the as this was land that had been untouched can offer clean energy in the form of wind gian wind farms, feels that is a bit unfair. moniker Money Maker by the operations for centuries,” Haugen told local paper power.” “The Hitra wind farm has never really crew at the wind farm. At times it pro- Hitra/Frøya. The Hitra wind farm (55 MW) has been made the headlines, but it is a reliable duces 20 per cent above the average for After ten years of operation, he is a reliable producer of renewable energy. energy producer,” says Andersen. “And the wind farm.

32 STATKRAFT NO 3 2014 NO 3 2014 PEOPLE & POWER 33 CURRENT AFFAIRS OUR PEOPLE

OUR PEOPLE

Statkraft has 3 735 ­employees, and there is always someone At age seven, she would hand out harsh notes changing jobs. to idling cars. Her passion for clean energy led

ØYDIS GADEHOLT her to France and the USA for her education, ON THE MOVE before choosing Statkraft. We asked Øydis

Position: Executive Assistant Gadeholt about: Department: Corporate Office Country: Norway In Statkraft since: 2012 ... the job I have a great opportunity to influence how my job as a new Age: 27 Executive Assistant will be. This is a new position that supports the executive Education: Master’s degree in vice presidents Asbjørn Grundt in Market Operations & IT, and Hilde Bakken ­Materials Science and Engineering from in PG Production. The position will also strengthen the interaction between the University of Pennsylvania (USA). Name: Isil Onan these two business areas. After two years as a trainee, working in Düsseldorf, Current: Started in the new position Position: Senior communications Ankara and Lysaker, I hope to contribute what I know and at the same time as executive assistant this autumn, ­advisor, Corporate Communication learn more about the company as a whole. after two years as a Statkraft trainee. Country: From Turkey to Norway Number of years in Statkraft: 3 ... inspiration When I get the opportunity to develop and learn, I go all out. I am inspired by clear goals with social impact. Tesla and SpaceX Isll Onan has worked with corporate founder Elon Musk is very inspirational, and shows us anything is possible social responsibility for International for individuals as well. ­Hydropower in Istanbul. She is now moving to Oslo to contribute to the inter- nationalisation efforts in our communica- ... rough times As a young student I hit the wall pretty hard. The tions work in Corporate Communication. transition from a Norwegian high school to a French bachelors programme She will work closely with the business was tough, and it was a heavy blow not getting the grades I had expected. It areas within risk and reputation, as well made for a useful experience and I learned that things work out as long as as partnership development with humani- you don’t give up. tarian and environmentalist organisations. ... good times I have had a very good time being part of the trainee programme and getting to know Statkraft’s activities. I never thought I’d be comfortable behind a trading desk and could never have imagined drinking tea with a Turkish village leader and his family in the middle of the work day. But both were great.

... balance I love working, and I do work a lot, but I also need to relax. I recently bought a piano and started playing again after 11 years. When I come home after a long day at the office, it is liberating to sit down behind Name: Einar O. Haugen the keyboard. Position: Senior HR advisor, UK Country: From Norway to UK Number of years in Statkraft: 16 ... clean energy Energy is key to break the chains of poverty. In light of the climate challenges we are facing, the world needs to make use of clean Einar Haugen is a veteran within interna- energy on a far grander scale. Statkraft’s vision and values were decisive for tional HR and administration in a number my choice to work here. of locations, including Lilleaker, Amster- dam, Düsseldorf, Istanbul and Tirana. As the senior advisor in WPT (Wind Power & Technology), he will have HR responsibil- ities in the UK, in close cooperation with Jenny Bull Tuhus Tommy Andresen HR in Knapsack and Oslo.

34 STATKRAFT NO 3 2014 NO 3 2014 PEOPLE & POWER 35 CURRENT AFFAIRS GOOD NEIGHBOURS

THIS IS THE CASE:­ About a year ago, Statkraft was reported to the police because a deviation at the Viforsen power plant caused critically low water levels in the river Ljungan. Local anglers and environmentalists got heavily involved in the matter. Statkraft took the matter seriously and initiated a research project with extensive ­participation from local participants.

2

GOOD Getting to NEIGHBOURS the bottom of it

It started with police reports and a bitter conflict. Now it is a major research project in the Swedish river Ljungan. In August, fivedivers ­ explored the riverbed and living conditions of the salmon.

Inge Kvivik Morten Stickler

onflict and bad relationships are “If we are able to map the bottlenecks the Ljungan a thing of the past. Now all parties salmon encounters in the river, we can to a are working together to help the greater degree determine the measures that researchers. would actually help,” Odelberg says. THE LJUNGAN is a 350 kilometre C“The project has gone well so far,” says long river in northern Sweden. Statkraft project manager Angela Odel- FROM CONFLICT TO COOPERATION berg. “Good production planning prior to Statkraft faced harsh criticism in Ljungan THE LJUNGAN PROJECT is an the project provided optimum water levels for some time. Anglers were upset over how administrative collaboration and made it easier for the divers to see the Statkraft ran the river, and the debate raged initiated by Statkraft. It focuses riverbed. This enabled us to map almost the in media and the community. on the last 17 kilometres of the river. entire 20 kilometre section on the first three One of the reasons for the conflict was days.” that Statkraft was unaware of an agreement STATKRAFT owns five power She is referring to a hectic period early concerning water flow downstream of the plants on the river, including this autumn, when divers mapped the Viforsen power plant, between SMHI (The Viforsen. section downstream from the Viforsen Swedish Meteorological and Hydrological power plant. The days were spent searching Institute) and the energy company that THE PROJECT makes use of the environment manual on envi- for riverbed conditions that are particularly used to operate the plant. After an acci- ronmental design in developed important to salmon, from the Viforsen dental lowering of the water levels, many salmon river systems, prepared power plant in Sundsvall municipality and feared for the salmon eggs. Both Statkraft by the CEDREN research centre. all the way to the Gulf of Bothnia. The rele- and the environmentalist group Älvräd- The manual is also available in vant riverbed conditions had to be mapped darna (The River Rescuers) reported the English. 1 to the smallest details to gain as much incident to the county, which resulted in a FIELDWORK in the river was 1 | Life under water Tore Wiers from Uni Environment scanning the 17 km river in three days. 2 | River guardians Morten Stickler, Angela Odelberg, Tore Wiers, Johan insight as possible into the challenges faced SEK 150 000 fine for Statkraft. conducted between 18 and Kristofers, Sjur Gammelsrud, Helge Skoglund and Sven Erik Gabrielsen. by the salmon in the area. Instead of a quick correction, a decision 20 August 2014.

36 STATKRAFT NO 3 2014 NO 3 2014 PEOPLE & POWER 37 CURRENT AFFAIRS GOOD NEIGHBOURS

STATKRAFT NATION BRAZIL

BRAZIL

INHABITANTS: 200 million 7491KILOMETERS CAPITAL: Brasilia SYSTEM OF GOVERNMENT: Republic PRESIDENT: Dilma Rousseff ... the length of Brazil’s coastline. Statkraft’s second LANGUAGE: Portuguese southernmost wind farm, Barra dos Coqueiros, is ­located in the state of Sergipe, where waves meet land. Brazil is the largest country in Latin America, in terms of population, 3 4 size and economy. The country has 3 | Head above water and the rest of the team had three days of intense field work in the river. Their work will form the all-important basis for possible measures in significant automotive, petrochemical, the Ljungan. 4 | Stunning research The Ljungan is characterised by rich biodiversity and unique wilderness experiences. And it will continue to be so in the future. electronics, cement and construction, aviation, textile and mining sectors.

ENERGY MARKET was made to implement a thorough study there sediments that clog up hiding places The river Ljungan is home involving all stakeholders on the river. for the spawn? Are the suitable areas few Annual consumption of 425 TWh, based on a production capacity of 123 “It didn’t feel right just to comply with and far between? to important biodiversity. GW. Demand for electricity is rising, the order. The river Ljungan is home to The purpose of the wet and slow work, 2 mainly due to a growing middle class important biodiversity, including a unique wearing mask, snorkel and a rubber suit, 1 and major infrastructure projects. salmon population well worth protecting,” was to find the good, dry facts. issue of People&Power),” Stickler says. “The says Odelberg. The data is collected in a digital map, and Ljungan project is based on this work.” Hydropower constitutes 75 per cent The county administration, Sundsvall forms the basis for the rest of the project. The manual is divided into two main of the production capacity. Most of municipality, anglers in the Ljungan and the “Historically, in order to improve con- parts. The first part looks at challenges and the large hydropower plants are state-­ owned. Private players have recently fish protection areas Tuna Östra and Nedre ditions in salmon-bearing rivers, measures diagnosis, the second part focuses on possible POWER PLANTS invested heavily in wind farms. Ljungan, are just some of the players coop- have been implemented without sufficient solutions and measures. erating with Statkraft in the Ljungan project. prior mapping,” Odelberg says. “This has “It is important to take one step at a time in 1 BAHIA WIND FARM Odelberg explains that the background for led to random, and not necessarily positive, order to do the right things at the right time in 2 BARRA DOS COQUEIROS WIND FARM 10 the cooperation was a need for dialogue and results. Through systematic methodology, a competent and cost-efficient way,” Stickler 3 CERAN joint understanding. we have a greater chance of succeeding.” says. “Experts from various leading research DID YOU KNOW ... 4 DONA FRANCISCA 8 “The various parties are not necessarily communities in Norway are now working to 3 5 ESMERALDA SHP 9 familiar with the intentions and challenges TESTING THE ENVIRONMENT MANUAL complete the first part of the Ljungan project. 6 MOINHO 6 of the others,” she says. “Through the Statkraft has a long tradition of cooperating By doing this, we are transferring sound 5 THE CAPITAL BRASILIA was built MONJOLINHO meetings, anglers and locals have received with various national and international knowledge and precedence to Sweden. In 7 4 in just 41 months, between 1956 7 and 1960. a greater understanding of our side of the research institutions. This has contributed addition to the manual mapping, we are also 8 PASSOS MAIA 9 SANTA LAURA story, and we have gained insight into what to the company now possessing some of the testing a new method of scanning the river THERE ARE about 2500 airports is important for the locals.” most efficient and most environmentally from the air, using so-called green lasers.” 10 SANTA ROSA II in Brazil. Per Nordlund, director of Statkraft Swe- friendly hydropower plants in the world. “This helps us check new and old me­­ den, is also interested in how the approach Norway’s CEDREN is one of 11 research thods against each other, and obtain new THE COUNTRY has has three time 1–2 3–10 zones. can be applied to other river systems. centres within environmentally friendly knowledge.” “It is important for Statkraft to obtain energy (FME centres). The Research Council THE NATION’S RAIN FOREST knowledge in order to balance energy and of Norway and the energy industry fund THE FUTURE OF THE SALMON Although constitutes 60 per cent of the environment considerations in a sound CEDREN. Statkraft is the single largest the researchers have been at it for days, it Amazon basin. STATKRAFT IN BRAZIL way,” he says. financial contributor from the indus- is still too early to say what will be required THE NATIONAL DRINK is called try, with investments of NOK 55 million. to safeguard the salmon population in the ­caipirinha and is made from lime, RESEARCHERS AND DIVERS During the Experts from Statkraft are also involved in Ljungan. Time will show whether habi- sugar, ice cubes and cachaça. first phase of the project, the hydrology of the centre’s projects, such as the Ljungan tat measures are implemented – such as Statkraft considers Brazil to be a key growth market in years ahead. the river system was analysed by Norway’s project. One of them is senior environmen- introducing spawning gravel, cleaning gravel In 2012, Statkraft acquired a stake of 40.65 per cent in Desenvix, THE NAME BRAZIL is derived SINTEF. Fieldwork on the riverbed was tal advisor, Morten Stickler. banks or establishing new hiding places. a company with interests in renewable energy. Statkraft also has from the Brazil wood tree. significant and growing market operations based on the Enerpar carried out this autumn. Where do we find “Last year, CEDRAN developed a manual One thing is hopefully certain: There will be portfolio, acquired from Norske Skog in 2011. rocks? Where is the riverbed sandy? Where for environmental design in developed salmon enjoying themselves in Ljungan in is the gravel size good for spawning? Are salmon-bearing river systems (see previous for many years to come.

38 STATKRAFT NO 3 2014 NO 3 2014 PEOPLE & POWER 39 IN 2013, MORE THAN NOK 1 571 BILLION WAS INVESTED IN #RENEWABLEENERGY HTTP://FORNYBARFREMTID.NO/ @STATKRAFT SHOWS HOW NORWAY COULD BE PART OF THE SOLUTION

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