Environmental considerations in the Arctic: Sustainable resource exploitation The Bellona Foundation is an international environmental NGO based in Norway. Founded in 1986 as a direct action protest group, Bellona has become a recognized technology solution-oriented organization with offices in Oslo, Brussels, Kiev, St. Petersburg and Murmansk. Altogether, some 60 engineers, ecologists, nuclear physicists, economists, lawyers, political scientists and journalists work at Bellona. The authors would like to gratefully acknowledge their colleagues and partners for guidance and advice, and in particular Marika Andersen and Lene Elizabeth Hodge for proofreading. @2015 by the Bellona Foundation. All rights reserved. Users may download, print or copy extracts of content from this publication for their own and non-commercial use. Nor part of this work may be reproduced without quoting the Bellona Foundation or the source used in this report. Commercial use of this publication requires prior consent of the Bellona Foundation Layout and graphic design: Bellona Photo frontpage: Thinkstock Disclaimer: Bellona endeavours to ensure that the information disclosed in this report is correct and free from copyrights but does not warrant or assume any legal liability or responsibility for the accuracy, completeness, interpretation or usefulness of the information which may result from the use of this report. Contents Preface ........................................................................................................................................................................... 6 Authors .......................................................................................................................................................................... 7 Conclusions and Key Findings .................................................................................................................................... 8 Introduction.................................................................................................................................................................. 12 1. Renewable energy production in the Norwegian Arctic .......................................................................17 1.1 Geographic chapter scope .............................................................................................................................. 17 1.2 Into the renewable energy revolution ............................................................................................................ 18 1.3 Technology review........................................................................................................................................... The Bellona Foundation is an international 19 environmental NGO based in Norway. 1.3.1 Hydropower ................................................................................................................................................. 19 Founded in 1986 as a direct action protest group, Bellona has become a recognized 1.3.2 Onshore wind ........................................................................................................................................ 20 technology solution-oriented organization with 1.3.3 Offshore wind ........................................................................................................................................ offices in Oslo, Brussels, Kiev, St. Petersburg 22 and Murmansk. Altogether, some 60 1.3.4 Solar power ........................................................................................................................................... 24 engineers, ecologists, nuclear physicists, economists, lawyers, political scientists and 1.3.5 Tidal power............................................................................................................................................ 26 journalists work at Bellona. 1.4 Obstacles and drivers for new renewable developments in the Norwegian Arctic ................................. 27 1.4.1 The Nordic energy market: brief political framework overview ........................................................... 27 The authors would like to gratefully acknowledge 1.4.2 Embarking on a Nordic power surplus .................................................................................................. 27 their colleagues and partners for guidance and advice, and in particular Marika Andersen and 1.4.3 The North-Norwegian power surplus ................................................................................................... Lene Elizabeth Hodge for proofreading. 28 1.4.4 Grid up-scales required: the case for an integrated Arctic grid ............................................................ 29 @2015 by the Bellona Foundation. All rights 1.4.5 Sustainable markets: new industrial opportunities in the North ......................................................... 31 reserved. Users may download, print or copy extracts of content from this publication for 1.4.6 Green growth joker: Arctic datacenters? .............................................................................................. 31 their own and non-commercial use. Nor part of this work may be reproduced without quoting 1.4.7 Green growth joker: can Finnmark’s stranded wind trigger Norway’s hydrogen industry? .................. 32 the Bellona Foundation or the source used in 1.4.8 Green growth joker: eco-tourism in the Arctic ...................................................................................... this report. Commercial use of this publication 33 requires prior consent of the Bellona Foundation 1.5 The scope for renewable energy production and electrification at the Norwegian . Arctic islands .................................................................................................................................................. 34 Layout and graphic design: Bellona 1.5.1 Remote off-grid electrification: Jan Mayen, Bjørnøya and Hopen ......................................................... 34 Photo frontpage: Thinkstock 1.5.2 What power after coal, Spitzbergen ...................................................................................................... 35 Disclaimer: Bellona endeavours to ensure that the information disclosed in this report is correct and 1.5.3 Global market trends with local implications ........................................................................................ 35 free from copyrights but does not warrant or assume any legal liability or responsibility for the accuracy, 1.5.4 Spitzbergen: an Arctic renewables showroom? .................................................................................... completeness, interpretation or usefulness of the 35 information which may result from the use of this 1.5.5 A symbol arena for electrification and clean-tech innovation .............................................................. report. 37 1.6 Key findings and recommendations .............................................................................................................. 38 1.7 References ..................................................................................................................................................... 39 2. Renewable energy sources in the Murmansk Region: A brief introduction ......................................... 41 2.1 Renewable Energy Sources in the Murmansk Region: Current status .......................................................... 44 2.2 Legal framework for using renewable energy sources in Russia ................................................................... 48 2.3 Nation targets ................................................................................................................................................ 49 2.4 Compensation of technological connection costs ......................................................................................... 50 2.5 State support scheme on the wholesale electricity market .......................................................................... 51 2.6 State support scheme on the retail electricity market .................................................................................. 51 3 2.7 Renewable energy potential for off-grid consumers in Murmansk Region ................................................... 52 2.8 Potential by RES type ..................................................................................................................................... 54 2.8.1 Wind power ........................................................................................................................................... 54 2.8.2 Small hydropower .................................................................................................................................. 55 2.8.3 Solar power ............................................................................................................................................ 56 2.8.4 Tidal power ............................................................................................................................................ 58 2.8.5 Wave power ........................................................................................................................................... 59 2.9 Bioenergy resources ....................................................................................................................................... 60 2.9.1 Biodegradable wastes from livestock