I I I I I I I I Renewable energy www.renewableenergy.no Renewable energy I I I I I I I I PREFACE Renewable energy has been an important political topic for a long time. 20-30 years ago there was an increasing realization that the earth’s resources are limited and that the world’s dependency on fossil fuel must be reduced. Today, climate problems are on the summit of the international political agenda. Climate change created by humans around the globe is the largest challenge humanity is currently faced with. EU and many national authorities have therefore decided to focus on a re-adjustment toward more environmentally friendly energy production and consumption. Norwegian authorities have set a target of 30 TWh of new electricity production, heat from renewable sources of energy and through energy efficiency by 2016 over the 2001 level. The purpose of this compendium is to present a concise overview of the progress of technology, economy and market in relation to renewable energy. The publication will also present exam- ples of Norwegian companies that deliver relevant technology. The compilation of the information for this publication has been carried out by the consultan- cy company SWECO Grøner in close cooperation with the Norwegian Water Resources and Energy Directorate (NVE), Enova, The Norwegian Research Council and Innovation Norway, which also have financed the publication. The booklet has been quality assured by a number of experts. In addition, the Center for Renewable Energy, which is a cooperation between The Norwegian University of Science and Technology (NTNU), Institute for Energy Technology (IFE) and The Foundation for Scientific and Industrial Research at NTNU (SINTEF), has contributed with comments and suggestions. 22 March 2007 ………………. ………………. ………………. ………………. Marit L. Fossdal Eli Arnstad Kirsten Broch Mathiesen Bjørn Eriksen Energy director The Managing director Director for Strategic Priorities Director of Norwegian Water Enova The Norwegian Research department Resources and Council Innovation Norway Energy Directorate 4 Renewable energy 1 Introduction 6 2 Solar energy 10 3 Bioenergy 28 4 Windpower 46 5 Hydropower 58 6 Ocean energy 70 7 Geothermal energy 82 8 Technologies for renewable energy 92 Renewable energy 5 1. INTRODUCTION All reliable examinations and analyses the last thirty In 1997, the Kyoto protocol was established on the years point in the same direction: The use of fossil fuels basis of the Kyoto agreement. This means that that the in the transport sector and the energy provision should global emission of greenhouse gases will be reduced by not continue like today. The increase in greenhouse 5.2 per cent in relation to the 1990-level within 2012. gas emissions in the same time period also gives rise Norway is among the countries that have ratified the to concern. In 1987, the international Brundtland agreement that came into force on February 16th 2005. Commission, led by Gro Harlem Brundtland, Prime In this agreement, we were required not to increase the Minister of Norway at the time, presented the report greenhouse gas emissions by more than one per cent “Our common future”, the first overall and all-inclusive compared to our 1990-level. In 2005, emissions had political analysis of the international environmental however increased by eight per cent in relation to 1990. challenges. The concept “sustainable development” was launched here among other things. The report recom- The autumn of 2006, former Chief Economist in the mends the countries to change the energy consumption World Bank, Sir Nicholas Stern, presented the report and to base their welfare on a sustainable development. “The Stern Review”. It painted a gloomy picture of the situation if the international community doesn’t manage to halt the increase of greenhouse gas emissions. The report determines that this development must be turned now, and that the serious consequences will manifest themselves as early as within one generation. Stern and his analysts predict that several areas in the world will experience lack of drinking water, several hundred million people will start a migration as a consequence of a rise in the sea level of one meter or more, and what is the most serious: A global lack of food. The report also points at an increase of climatic weather phenomena as storms, floods, forest fires and drought. At the end of 2006, the international energy agency IEA presented the report “World Energy Outlook 2006”, where they describe a number of scenarios for the devel- opment towards 2030. The reference scenario describes Photo: Corbis. a development with the same effort as today to change the energy use. The world will then use almost twice as much energy in 2030 compared to 2004, and the renewable energy sources will make up an even smaller share of the total production even though the volume increases. The positive aspect, which represents our challenge, is the report at its most optimistic, but at the same time 6 Renewable energy realistic, scenario, shows that the increase in the world’s energy consumption can flatten out, and that the climate threat can be handled with the help of, among other things, increasing the share of renewable energy sources considerably. Possibilities for Norwegian players This is very convenient for Norway. We already base the main part of our stationary power production on the renewable energy source large-scale hydropower. Besides, Norway has large related wind- and wave power resourc- es along our long coast. The autumn 2006, The Low Emission Panel presented its analysis on how Norway best can reduce its emissions of greenhouse gases. Here the great potential that lies in increasing the utilization of bioenergy was pointed out, both for district heating plants and as raw material for bioethanol, and in exploit- ing the enormous wind resources far at sea in the North Sea. In the political environment as well as in trade and industry, there is broad consent that there is a great public utility in exploiting these resources. In 2006, the government notified that it will allocate 20 billion NOK in a fund, where the public company Enova has been given the task of administering the earnings. It will be used to foster renewable energy and measures to increase energy efficiency. Norwegian scientists, professionals and trade and industry are among the best in the world at within a number of areas that concern renewable energy sources. This expert knowledge, combined with good economic framework conditions and accessible technology, should lay the ground for a healthy exploitation of those of our The IEA report “World Energy Outlook 2006” points out that increasing the resources that haven’t been exploited up until today, an share of renewable energy sources considerably is an important measure to exploitation that is based on trade and industry. handle the climate threat. Photo: Øystein Søbye/Photographica. Renewable energy 7 Norwegian companies have a long tradition in estab- Obstacles for further expansion lishing activity based on society-related needs. There is a reason to expect many small and middle-sized of renewable energy Norwegian suppliers of equipment and services to the future wind power, wave power and bio energy industry. The international energy agency IEA doesn’t only point It’s interesting to note that such industry and business to renewable energy sources as climate-friendly measures activity are often located near the areas where there is in a future society. In the report “World Energy Outlook most need. This means that the conditions are appropri- 2006”, they point out that it is highly likely that the ate for growth in trade and industry along and outside consumption of fossil fuels will increase, no matter how the coast, where the resources are found. optimistic the scenarios are. This is because the main part of the increase will come about in China and India, It’s also worth mentioning that Norwegian industry is which will base their consumption increase mainly on among the largest producers of silicon for the production coal. Therefore IEA points at the capture and depositing of solar cells. Norwegian companies are also active in the of CO2 as an important method to reduce the emissions production of solar thermal collection systems. Europe’s largest land based wind farm at Smøla. Photo: Statkraft. 8 Renewable energy of greenhouse gases. Nuclear power will also be empha- scale hydropower production, bio energy projects and sized as a significant contribution. some wind power. However, it has proven difficult to find international consensus regarding common means Nuclear power has a number of problems however, to develop the renewable energy resources. Several among them the costs related to further expansion, and countries practice different kinds of “green certificates” public scepticism in relation to the waste problems. and guaranteed minimum prices to give the developers Nevertheless, nuclear power industry is very strong in of renewable resources stable framework conditions. many countries, among them in France, Germany and Great Britain. It’s expected that new generations of Environmental protests also hit developers of renewable nuclear power plants will remedy many of the problems energy sources, for example wind power. More than one is faced with today. In Finland, the largest power 100 meter high wind turbines, often in parks count- plant of the Nordic countries will be completed in 2009, ing dozens of turbines are perceived as visual pollution and yet another is being planned. by residents as well as people passing by. A promising technology that doesn’t seem to create substantial The capture and depositing of CO2 can be a more environmental conflicts is offshore wind power far relevant competitor to developing the renewable energy off the coast. It’s free of emissions, hardly comes into resources. Also on this area, Norwegian players are far contact with birdlife, can be placed outside fishing ahead.