Annual report 2013 1 RESULTS AND ACTIVITIES 2013 Content Key figures 2013 3 Part 5 | Reporting – the Energy Fund 35 The CEO speaks 4 2012 and 2013 Enova’s main objective 36 Part 1 | Enova’s outlook 5 Objectives and results of the Energy Fund 38 Green competitiveness 6 Management of the Energy Fund’s resources 40 New energy and climate technology 41 Part 2 | Enova’s activities 9 Climate reporting 52 Social responsibility 10 In-depth reporting 54 Organization 10 Energy results 54 Management 12 Funding level 55 Energy results by project category 56 Portfolio composition 58 Part 3 | Market descriptions 13 Activities 62 Enova – market team player 14 International 65 Indicators 14 Geographical distribution and the largest Renewable heating: 67 16 projects From new establishment to growth Tasks outside the Energy Fund 70 Industry and non-industrial plants and facilities: 18 More companies are cooperating with Enova Energy Technology Data Exchange (ETDE) 70 Non-residential buildings: Intelligent Energy Europe (IEE) 70 20 Energy smart buildings for the future Natural gas 70 Residential buildings: 22 From advice to action Part 6 | Reporting – the Energy Fund New energy and climate technology: 71 24 An innovation perspective 2001-2011 Bioenergy: Energy results and allocations 2001-2011 72 26 Small steps towards a stronger market Climate reporting 78 Part 4 | New energy and climate Appendices 80 27 technology Consultation submissions 81 New technology for the future’s non-residential 28 Publications 81 buildings Definitions and explanation of terminology 82 Symbol key Investigated Renewable Industry Interaction Advicing New energy and Financing Non-residential climate technology buildings Graphs/tables Renewable heating Projects Resedential buildings 2 Key figures 2013 30% RENEWABLE HEATING 5% 1% RESIDENTIAL RENEWABLE BUILDINGS P O W E R PRODUCTION 1,4 TWh In 2013, Enova supported projects with a total energy result of 1.4 TWh through the Energy Fund, distributed over energy efficiency measures, conversion and increased utilization of renewable energy. Did you know that… 34% 1.4 TWh corresponds to the energy 30% consumption of every household in NON-RESIDENTIAL Troms County, Norway. INDUSTRY AND BUILDINGS NON-INDUSTRIAL PLANTS AND FACILITIES RENEWABLE INDUSTRY NON- RESIDENTIAL NEW HEATING Enova will RESIDENTIAL BUILDINGS TECHNOLOGY Enova will ensure contribute to BUILDINGS Enova New technology renewable heating a more climate-friendly Enova works to realize provides advice and will solve the future’s becomes the preferred and energy-efficient maximum energy support for energy energy challenges. heating method in industry supplied with efficiency potential improvements in Enova supports Norway. Restructuring renewable energy. in buildings. Enova residential buildings. market introduction of to renewable heating is Enova works continu- supports market Support is provided new technology and an important measure ously to increase the players that want to both for constructing contributes investment for more climate- pace of restructuring construct, renovate or new buildings, as support for market friendly use of energy of energy end-use and operate the energy- well as for upgrading innovators. in our country. energy production in efficient buildings of existing residences. the industry. tomorrow. In 2013, 19 projects In 2013, 60 projects In 2013, 484 projects received funding were supported by In 2013, 174 projects In 2013, 583 projects and more than 6800 commitments from Enova. were supported by were supported by energy initiatives Enova. Enova. Enova received funding commitments from Enova. 3 THE CEO SPEAKS Enova invests in energy and climate solutions NILS KRISTIAN NAKSTAD Chief Executive Officer Never before has interest in implementing projects in collaboration with Enova been greater. For many, innovation and use of new energy and climate technology is the only natural choice. It is also the necessary choice to face the challenges posed by greenhouse gas emissions. In development billion in 2013. The new allocations in the Primary Capital Fund In 2013, Enova launched new programmes and strengthened its (Climate Technology Fund) will not yield income to the Energy own organization. We provide investment support through more Fund until 2014. We advanced the new efforts by investing NOK than 20 programmes, about half of which are new or were rene- 93 million in seven energy and climate technology projects in the wed in 2013. The organization has been reinforced through stron- industry. ger market orientation and specialization. Innovation and new technology Results in 2013 A red thread in Enova’s development in 2013 is increased We invested in 1350 new projects in 2013, with an overall energy investments in introduction of new technology and innovation. result of 1.4 TWh. We are eager to see a higher energy result, but Innovation in the markets consists of new technology, changed are very satisfied with the general activity level and the beginning behaviour, new knowledge and new business models. of the new energy and climate technology focus. Enova stimulates such innovation, for example through efforts in The markets for Norwegian industries have been somewhat chal- energy management, energy advising and pre-project support. In lenging and turbulent. Investments in mainland industries are technology projects we require the customer to have a business relatively low, which is reflected in our results. One positive feature model for the new solutions before we become involved. is a record number of projects from small industrial companies. We strengthened our efforts vis-à-vis the oil and gas industry in The results within renewable heating in 2013 were better than 2013. We believe technology and knowledge from oil and gas can anticipated. Investments are particularly high within increasing be transferred to projects in land-based industries and other areas expansion of existing district heating plants. in society. Enova has experience from such projects and believes this can be applied on a greater scope. The largest result contribution came from non-residential buildings. Rehabilitation of existing buildings yielded the greatest We strengthened follow-up and reporting in the technology pro- energy results, while new building efforts have lower results and jects. We believe there could be many valuable lessons to learn are more expensive. here on technology development and innovation processes, and believe it will provide us with ideas for further development. We are very happy with the development in our programmes for passive houses and low energy buildings; from very few new pas- Restructuring of energy end-use and energy production, scarcity sive houses being constructed in 2009 to 10 per cent of all non- of resources and greenhouse gas emissions residential buildings in 2013. The development was so robust that Our energy system is changing. New production is coming, new we discontinued support for new passive houses near the end of distribution is being developed and consumption is changing. 2013. We believe the market will continue this development wit- A robust supply and efficient energy use are important for hout our support. continued development of industry and value creation, and to reduce greenhouse gas emissions. Enova has expanded its programmes for households with support for energy advising and phasing out oil boilers, and launched a The global challenges associated with scarcity of resources and new subsidy programme for those utilizing the best solutions in increasing greenhouse gas emissions are inching steadily closer. the household market as well. Increased renewable energy production and more efficient ener- gy use are an important part of the solution. More projects were cancelled in 2013 than in previous years. The most affected markets were renewable heating and industry. A In a Norwegian context, we cannot allow a good power balance and drop in power prices and turbulent industrial markets may have an expansive, oil-driven economy to keep us from action. The inter- contributed to this. The largest cancelled project in 2013 came national markets want more renewable power and products that after Sødra Cell Tofte AS’ plant on Tofte was wound up. utilize resources efficiently, and leave a small climate footprint. The Energy Fund received NOK 1.7 billion and pledged NOK 2.0 Enova contributes to green competitiveness. 4 Part 1 Enova’s outlook FINANCING Green competitiveness 6 Enova’s most important tool is the financing we provide to projects, whether they are major industrial projects, or smaller household measures. ADVISING Enova’s second most important tool is the advice we provide to projects. It is given in a structured manner through our targeted programmes. INTERACTION Enova is a market team player. We contribute knowledge and capital for projects and enable more market players to realize their projects. 5 PART 1 ENOVA’S OUTLOOK Green competitiveness The message from the UN Climate Panel (Intergovernmental Panel on Climate Change – IPCC) and the International Energy Agency is crystal clear. If the world does not take action quickly, climate change will be dramatic, with a global temperature increase of six degrees Celsius – which we definitely want to avoid. And we can, but it’s urgent. Without new initiatives, in 20 – 25 years, the world will no longer responsibility by the Norwegian Parliamentfor helping develop be able to limit global warming to two degrees. Luckily, there are the future’s energy and