new solutions powerful network - statkraft · 2015-01-18 · collection “chasing new ideas”,...

People& POWER

NO. 3 2014 | PROVIDING PURE ENERGY

Entering into partnerships allows Statkraft to access new markets, develop expertise and reinvest. Trust, shared goals and values are the keys to success.

Good relationsFEATURE | PARTNERSHIP

Bitter conflict solved

Be prepared

Powerful network

GOOD NEIGHBOURS

POWERTALK

NEW SOLUTIONS

2 STATKRAFT NO 3 2014 NO 3 2014 PEOPLE & POWER 3

ContentPEOPLE&POWERNO. 3 | 2014

BENTE E. ENGESLANDSENIOR VICE PRESIDENT, CORPORATE COMMUNICATION

A MAGAZINE FOR STATKRAFT EMPLOYEES

Local partners, familiar with the terrain, the

country, the markets, and the culture, are essential

to success.

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

FEATURE: PARTNER-SHIPS Statkraft is entering into more and more partnerships. Why, with whom, and what is needed to succeed? Tima Utne Iyer (IH) and Jon Vatnaland (WTP) share their experience.

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POWERTALK Director of the Norwegian Water Resources and Energy Directorate Per Sanderud wants more clean energy.

12PEOPLE ON THE MOVE As a trainee, Øydis Gadeholt has become familiar with three countries and various business areas. As the new executive assistant, she is looking for the whole picture.

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THE STATKRAFT SCHOOLHow to harness energy from wind and solar power plants? Virtual power plants are the way to go.

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GOOD NEIGHBOURS What started as a bitter conflict between Statkraft and the local community has be-come a fruitful collaborative research project in River Ljungan, Sweden.

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STATKRAFT NATION: BRAZIL Did you know that Statkraft’s southern-most wind farm is located in Brazil?

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ON THE NARROW PATH What happens when Statkraft is renovating several power plants in the middle of a popular tourist area, and construction equipment and tourists must share the same, narrow path?

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SEAFARING HEROES When your workplace is 150 metres above the waves, your commute is slightly different than for most.

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A slightly greener India

T he road is steep and the corners are sharp. The road leading up to the Allain Duhangan power plant, 2700 metres above sea level, has been

carefully constructed. Who would have thought that a run-of-river plant would be possible here in Himachal Pradesh? The workers tell me that in the beginning, they would walk the final 30 kilometres. They had to traverse this beautiful moun-tain area just as the local goats do.

This was the start of what would become one of the most challenging projects in the history of SN Power and Statkraft. Challenging geology, risk of rockslides, and safety measures were tough to implement. There were several tragic deaths during the construction phase. However, Allain Duhangan is now operating as it should, with capacity to deliver electricity to several hundred thousand households.

The power plant manager and the employees warmly welcome president and CEO Christian Rynning-Tønnesen and us who are part of his entourage.

“This has been a pioneer project,” says Rynning-Tønnesen. “It is definitely a plus to have solid expertise and experience when dealing with such difficult devel-opments as Allain Duhangan. Therefore, companies of a certain size are needed to be successful.”

He believes local partners, familiar with the terrain, the country, the markets, and the culture, are essential to success. I dis-

cuss the value of the partnership with the management in Bhilwara Energy. What is needed to succeed? They point to three factors: First of all, mutual understanding. Truly understand the other party. Then trust from the very start. Mistrust and lack of confidence ruin everything. The third is patience, they say, as they smile brightly.

India has a population of 1.3 billion, and the country’s energy needs are mas-sive. Currently, the sub-continent runs on coal, which provides 68 per cent of India’s energy comes from coal power. At least 400 million people still lack electricity – and blackouts are rampant.

The power market and the will to invest have not been that great, but many people have greater confidence in the economy now. The new prime minister, Narendra Modi, is ambitious. “We need a saffron revolution,” he says. “In order to handle the growing energy needs, we need more investment in solar power.”

Modi can hardly be called a climate champion. He is of course driven by the ambition to achieve economic growth and secure energy supply. However, Modi’s solar vision can, in time, lead to a slightly greener India. As part of this, Statkraft is on the lookout for new business oppor-tunities and models. Market operations, power trading, and solar power pilot projects are just a few of the initatives the teams in New Delhi are working on now.

And our president and CEO assures us that Statkraft has come to India to stay.

POWER


NEW KNOWLEDGEGetting the big guns out

Water flow Renovations of Nedre Røssåga will improve conditions for fish in the river.

At the UN Climate Summit Christian Rynning- Tønnesen (Statkraft), Dr Sultan Al Jaber (Chairman of Masdar), Ed Davey (UK Secretary of State for Energy & Climate Change), Helge Lund (Statoil).

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 Statkraft’s largest rehabilitation project this year. Blasting for the new power station was completed in May, and in August, a gigantic suction pipe was installed.

“As far as we know, this pipe is the largest in Norway that’s connected to a Francis turbine, and can swallow a total of 105 cubic meters of water each second,” says project manager Roald Nilsen.

The next milestone is to get the spiral drum in place (pictured at left). The spiral drum is a cochlear pipe that distributes the water flow to the guide blades of the turbine.

The drum being installed in Nedre Røssåga is no feeble waif. It weights in total 120 tonnes. The spiral drum was constructed in China, and just shipping it to Norway and Nordland County was a major operation in itself.

The rehabilitation of the Nedre Røssåga power plant will increase power production, and also improve the conditions for salmon and lake trout. A new bypass valve will ensure minimum water levels in the Røssåga. Statkraft is also implementing significant measures in the river system to improve spawning conditions for salmon and lake trout.

The outlet for the power plant will be moved further up the river, which means that a stretch of around 600 meters with reduced water levels, will now have high and regular water flow. This stretch represents 30 per cent of the spawning area in the entire Røssåga river system.

The investment framework for the entire project is NOK 1.7 billion. When the project is completed, the Nedre Røssåga and Øvre Røssåga power plants will produce two per cent of Norway’s total power generation.

Climate knowledgeDO WE HAVE TO CHOOSE between economic growth and reducing climate risk? This ques-tion is discussed in the article collection “Chasing New Ideas”, recently published by Statkraft. The collection is a result of the roundtable discussions organised by Statkraft in November last year, where climate researchers, envi-ronmentalists, business leaders and other significant voices in the climate debate were gathered. The publication aims to share new thoughts on climate and energy with a broader audience.

http://epub.artbox.no/statkraft/cr

Progress at Fosen600 MW of wind power at Fosen in central Norway is one-step closer to realisation following the inception of Fosen Vind AS in September. The new company is a joint venture between Agder Energi, NTE, Statkraft and TrønderEnergi. It will own three major planned wind farms of which Statkraft will be the operator.

While the engineering and planning of the wind farms have been progressing at full speed, the owner companies have all formalities in place to establish the company. Kristian Aa is the general manager of Fosen Vind AS, with EVP Jon Brandsar as the chairman of the board. The company will share offices with Statkraft in Trondheim.

According to the development plans, construction is scheduled for completion by the end of 2020, in order for the projects to be included in the Norwegian-Swedish green certificates market.

The wind farms and power cables in the Trøndelag Counties are mutually dependent in order to be realised, and time is short. The wind power players and the grid companies are already in dialogue to coordinate progress.

New partnerMASDAR has acquired a 35 per cent ownership interest in the Dudgeon wind farm. Under the new agreement, Statkraft and Statoil own 35 and 30 per cent of the wind farm respectively. The partnership was announced during the UN climate summit in New York in September.

“The United Arab Emirates is the only OPEC country to sell both renewable and traditional energy to the world market, and the country is committed to contribute to the increased use of wind power in order to achieve a more balanced energy mix as we are moving towards a sustainable future with less carbon emission,” says Dr Sultan Al Jaber, chair of Masdar, Abu Dhabi’s renewable energy company.

450 The rotor in Unit 3 at the Sima Power Plant weighs a whopping 450 tonnes. It was recently hoisted for maintenance for the first time in 35 years. The lift was carried out by two cranes that had been connected to the engine hall of the power plant.

FORMULA E Clean energy is appreciated in new areas. The inaugural Formula E championship race was held in Beijing, China, in Septem-ber. The race is exclusively for electric cars.

CURRENT AFFAIRS POWER


K limaendrOmnihitatem fuga.

CURRENT AFFAIRS REHABILITATION

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 construction machinery, tourist coaches and personal cars have to share the same narrow roads?

Tip of the tongue

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

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

REHABILITATIONTyssedal

NO 3 2014 PEOPLE & POWER 98 STATKRAFT NO 3 2014

This is the yes-bench,” says Hans Henrik Haukaas, maintenance manager in Statkraft at Tyssedal. We are standing in the middle of a hairpin corner, on the road up to Mågeli power plant. Far

below us, the sun reflects off the Sørfjord fjord.“This is where the boys would bring the girls to

propose,” says Haukaas, pointing to the bench. “It is difficult to say how far it is to the bottom of the gorge from the bench on the very tip of the cliff. The girl who rejected a would-be suitor here would have had nerves of steel. Not necessarily the case for all the tourists who slowly ease around the corners, hearts racing. There are several places where the road is too narrow for two cars to pass. And, I pity the poor tourist who meets a concrete truck. They might not dare to back up.”

The path leading to the tourist attraction that is the Troll’s Tongue starts at Mågeli power station in the Skjeggedal valley. Tourists need to either take a bus or drive from Tyssedal valley. The safety barrier is not much to speak of. In some places, all that separates the cars with an encounter with gravity is a row of sharp rocks. When Statkraft was preparing for the upgrade of the power plant, they also looked into how to avoid encounters on the road.

Included on Statkraft’s agenda was re-wedging of a unit in Mågeli power station, replacing the unit switches and the control facility in Skjeggedal pumping station,

as well as work on new cable culverts from Tysso 2 to a new open-air switching facility. At the same time, Odda Energi was scheduled to perform extensive mainten-ance of their facilities in the area, and constructing a new, large switching station. This would lead to signifi-cant traffic, right at the peak of tourist season.

THE TROLL’S TONGUE TOURIST ATTRACTION The Troll’s Tongue is a rock outcropping, about 1100 metres above sea level, and 700 meters above Lake Ringedals. This was a well-kept secret for a very long time, until some local residents received funding to market the attraction. In 2009, a few thousand tourists visited Troll’s Tongue. They posted photos of it online, and in a few years, “Trolls Tongue” had surpassed “Hardanger” as the search item with most clicks. This summer, about 40 000 tourists walked out on the tongue, after a five -hour trek over steep terrain. The waiting time to walk out on the outcropping has been as much as one hour.

“Early in the preparations, we focused on how to organise the traffic,” says Vidar Riber, head of Hardan-ger power station group. “Although we primarily have to make considerations for the task at hand, we don’t want to cause too much inconvenience for tourists, cabin owners and locals who also use the road. So we tried to transport the large components at times when traffic was low.”

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 during the construction of Tysso 2 in 1967.

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-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 in place for 30 years is slow work. 3 | Statkraft’s Hans Henrik Haukås (right) coordinates with Jostein Soldal of Opplev Odda.

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To achieve this, they met regularly with representatives from the local bus company, the tourist industry, local residents and Odda Energi.

“The planning resulted in the installation of a road barrier, so we can close the road when we are moving heavy transports,” Riber says.

Because of flexibility and good planning, the massive traffic spike on the narrow road went very smoothly.

TRADITIONS FOR TOURISM Even in the 1800s, Odda and Tyssedal were two of the most popular tourist destinations in the country. Adventure-seeking nobility and upper classes came from abroad, keen to expe-rience the nerve-racking roads up to the edges of the Hardangervidda mountain plateau, in horse-drawn carriages. In Skjeggedal valley, locals earned some extra money by rowing tourists to the impressive Ringed-alsfossen waterfalls, with a free fall of 160 meters. From here, they could admire the Tyssestrengene falls, Europe’s third largest waterfall with a free fall of 300 metres, twice the height of the Vøringsfossen falls.

Sam Eyde, the industrial pioneer and engineer, was behind the development of the Tyssdal power plant, Tyssso 1, in 1906. After a construction period of just a year and a half, the first high-pressure power plant in Norway was able to supply two factories in Odda with electricity, through seven kilometre long cables. One of

them, The Sun Gas Company, was the largest carbide factory in the world. Norway’s industrial venture had started. However, the tourist attractions were down the pipes, and the Skjeggedal tourist hotel had to close. It was almost a century before tourists returned here. Now, tour operator Opplev Odda has a great relation-ship with its neighbour Statkraft.

“There is a lot of power history in this area; it is part of the experience,” general manager Jostein Soldal says. “Tourists are very interested when we tell them about the industrial revolution that started here, which was a prerequisite for the Norwegian oil industry.”

“We haven’t noticed any additional traffic from Statkraft. All local parties have focused on making this work. Tourists usually go up early in the day, and when the parking lot is full around noon, they have to park down in the valley. At that time, we close the road, and transport tourists by minibus.”

Soldal is happy that Statkraft has accommodated tourism by constructing a parking lot on their land. Sherpas from Nepal are now rehabilitating an old path up the mountainside to the Troll’s Tongue, and Statkraft has airlifted rock and wood by helicopter.

NEW CHALLENGES “We’ve made some financial contributions and created available areas for the tourism industry, because we like the fact that Jostein

There is a lot of power history in this area; it is part of the experience.



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.

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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 landscape will be placed in culverts, making the view even more stunning for the tourists, Statkraft employees and locals in the Skjeggedal valley.

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 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 40 000 visitors this summer alone.

MÅGELI POWER PLANT finished in 1956, is the oldest 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.”

Re-wedging and rehabilitation


CURRENT AFFAIRS POWERTALK

AGE: 60POSITION: Director general, NVEEXECUTIVE EXPERIENCE: Various positions in five government ministries, including permanent sec-retary in the Ministry of Transport and the Ministry of Trade and Industry. President of the EFTA Sur-veillance Authority (ESA). Vice chair of the Board of Directors of Flytoget (airport train).EDUCATION: Social eco-nomics from University of Oslo. Visiting scholar Stanford University.FAMILY: Married, three children.

POWERTALK

PER SANDERUDPer Sanderud grew up in the Norwe-gian town of Hamar, on the banks of Lake Mjøsa, Norway’s largest lake. He is used to water. He has been the

director general of the Norwegian Water Resources and Energy Directorate (NVE) since 2011, a unique government admin-istration agency compared with similar entities in other countries.

“Water forms a blue thread in everything NVE does,” he says. “Norway’s energy supply is based on water. So more rain and more extreme weather have a ripple effect. The power utility companies, the roads administration and railways, everyone is impacted. More and heavier rain in the years ahead will increase the risk of natural damage.”

Climate change has made NVE a hot topic, and Sanderud has noticed the change. There is more interest and more pressure. More than 100 hydrologists analyse and monitor each minute of the day. NVE’s assessments and forecasts are in demand, both at home and abroad.

EXTREME WEATHER In recent years, we have seen major incidents involving extreme weather across the globe. We remember the violent and destructive Hurricane Sandy in New York. Tropical cyclone Haiyan in the Philippines. This year’s flood in the UK and the wettest winter there since the 1800s. Snow in Tokyo, more than in 45

years. Do you have any lessons for the authorities in other countries?

“We contribute in many places because of our long experience and our expertise. On behalf of the Norwegian Agency for Development Cooperation (NORAD), we are present in 15 countries. In Myanmar, we are working with connecting the prepared-ness organisation and the power compa-nies. We are present in Bhutan in the Himalayas and many African countries, such as Liberia, Mozambique and Tanzania, as well as in Asia, in the Philippines. Statkraft is present here as well, and we believe that investors will benefit from improved framework in the countries in which you invest. NVE develops models and water profiles that make it easier for authorities to plan and regulate. This is exciting and important work!”

Sanderud believes the global climate changes will characterise NVE’s activities more and more. Whether it is increased political pressure for an international climate agreement, we are talking a very long-term perspective even though busi-nesses are spearheading the green shift.

How does this affect your work?“In NVE, we are working more and more

with the Norwegian Metrological Institute and the Bjerknes Centre for Climate Research. We follow temperature changes more closely – and we expect milder

Communications senior vice president Bente E. Engesland speaks with NVE director general Per Sanderud about extreme weather, floods, climate change and focus on renewable energy.

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.

Taming the forces of nature

Bente E. Engesland Morten Brun

14 STATKRAFT NO 3 2014

POWERTALK

NR 3 2014 PEOPLE & POWER 15

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. I think the biggest changes we will see in Norway will be in the north. We are seeing stronger winds, and are noticing the risk which increase disruptions in the power grid.”

Society and we as consumers are also increas-ingly vulnerable to power disruptions. We cannot afford blackouts!

“No, blackouts in modern society can be fairly dramatic. My worst experience as head of the NVE was storm Dagmar in Western Norway in 2011. In the middle of Christmas, almost 1.2 million Norwegians intermittently lost electricity. Dagmar also reminded us that powerful gusts could cause trees to fall over more easily. There is a lot to think about when preparing, but then again, we cannot prepare for all possible incidents in nature.”

READY FOR EMERGENCIES Our talk returns to risk and crises. During a major crisis, Statkraft will be a part of NVE’s crisis organisation. We share some challenges.

In Statkraft, we have strengthened our prepar-edness organisation in recent years. This summer, several of us in the group crisis team were pulled from our summer bliss when the Norwegian Police Security Service (PST) issued a warning of a

possible terrorist threat against Norway. This threat did not materialise into any actions, but we were reminded that the world has become increasingly unstable. What did you in NVE think and do?

“Yes, there is a greater risk of instabil-ity. I followed the situation on a daily basis while the threat level was elevated, and we conducted thorough analyses of the extent of which NVE and the energy sector could be affected, although we do not have nuclear power in Norway. It is important to get on top of it from the very start. Particularly, I focused on the risk of computer crimes that can target the petroleum and energy sectors. We store a lot of sensitive information now, and everything is digital. We must be ready to handle several types of emergencies.”

LEAD BIG As leaders, we also need to operate in a more complex environment than before. There is increased globalisation, the pace has quickened, and there are strict performance requirements. You have extensive experience at top-level man-agement, and you are now at the helm of a key organisation in Norway. What is most important to you as a top executive?

“A manager has to lead big, not micro-manage. I also think it is very important to stimulate others to do a good job. My co-workers need my trust! Trust is every-thing. I also think it is important that

managers be in the thick of it from time to time. Part of what drives me is to understand the issues and their content. It is stimulating.”

Statkraft has a significant position as Europe’s leading producer of renewable energy, and is expanding its activities in many countries outside Europe. What are your views on our role?

“Statkraft is a very important contributor to preventing climate change, and for secur-ing more renewable energy for the world. We cannot keep the two-degree target by just becoming more energy efficient. We need more renewable energy. I believe Statkraft contributes with solid experience and exper-tise, which also benefits other markets and countries.”

MORE WIND POWER IN NORWAY At the same time, we have an energy surplus in the Nordic region, and there is a risk of over-investing. What is your perspective on wind power development plans in Norway?

“NVE, as the regulatory authority, is tech-nology-neutral. Until now, hydropower has been cheaper in Norway. However, we are processing an increasing number of license applications for wind power developments, while there is a lack of willingness to invest. I am a great believer in more wind power in Norway. The Fosen/Snillfjord project could 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 industrialise this focus. I am fully aware that 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 international and flexible energy market!”

The NVE director general is also an opti-mist at heart. He enjoys cross-country skiing and biking. Not too long ago, he went for a long ride in the forest around Oslo. Suddenly he had a flat tire. But who appeared to help with the problem? None other than eight people on the Statkraft company bike team. They had all the equipment he needed to fix his bike, and even pumped up the tire. A little luck goes a long way.

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

FEATURE PARTNERSHIP

NO 3 2014 PEOPLE & POWER 15

Statkraft continues to enter into new partnerships. The purpose is to free up capital, acquire expertise, or to gain access to

new markets. Everyone who has tried knows that living together requires effort. So, what is required to make a

relationship flourish, and what happens in a break-up?

ENERGY My day: I have a quiet start. I reluctantly get up at 07.15. My energy level gradually increases throughout the day, until I collapse at midnight.

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CURRENT AFFAIRS POWERTALK


FEATURE PARTNERSHIP

The air at Vang Farm in Hedmark County is buzzing with chitchat and laughter. A group from the utility company Bhilwara has come to

Norway in connection with the meeting of the board of directors in the joint ven-tures Malana Power Company and Allain Duhangan Hydropower.

“Spending time together and building personal relationships is extremely impor-tant to create successful partnerships. Trust is the key factor for success,” says Tima Iyer Utne, senior vice president of Southeastern Europe and South Asia in International Hydropower in Statkraft.

Earlier this year, she became responsible for India following the integration of SN Power, and has met her Indian counterparts many times already.

SOLVING OR DISSOLVING Finding the right partner, developing an agreement framework and creating a fruitful collab-oration with clear roles and shared goals is a time-consuming process. For some, partnerships are therefore a necessary evil – whether they are entered to free up capital or to gain access to projects or markets. Different internal corporate cultures and local conditions in the country of operation can further complicate partnerships. Some-times, these problems can be solved. Other times it is better to go separate ways.

A prime example of the former, is our partnership with Bhilwara, a collaboration that has stood the test of time. There were several fatalities during the Allain Duhangan development.

“SN Power invested a lot of time and

SEVERAL MODELS Bhilwara is one of two utility companies that Statkraft has entered into a partnership with in India. The second is Tata Power, a subsidiary of the interna-tional conglomerate, the Tata Group.

“India is a big country, and when we selected Bhilwara in 2004, our objective was to find a local partner with access to hydropower projects,” Iyer Utne says.

The two strategic partnerships are examples of various strategies for entering collaborations.

“With Tata Power, we conduct innova-tion and have complimentary expertise,” she explains. Tata works within the power industry and is the second-largest private hydropower player in India, but the com-pany does not have any recent experience from developments. Bhilwara, on the other

hand, developed the Malana power plant as a solo project, and Allain Duhangan in part-nership with us. The plants are operated by our joint venture. However, we want to take on a more active role and we are currently in a good process.

Employees involved in Statkraft’s market operations in Delhi have worked for Malana for some time, with daily power optimisation and trading on the IEX power exchange. During the September board meeting, Statkraft’s market team became responsible for the daily optimisation of the Allain Duhangan power plant as well.

“The feedback from Bhilwara indicates that they see the value of our expertise. By proving what we know in operations and optimisation, we create the foundation for a more extensive collaboration.”

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

presence during this phase of the project, and was successful in having the Indian partner see the value of our approach to HSE,” says Iyer Utne. “This was a positive development of the partnership, and trust was maintained.”

Other times, it is better to dissolve the partnership, as was the case with Austria’s EVN. Statkraft was invited to take part in a 50/50 joint venture for hydropower devel-opment in the Devoll Valley in Albania. EVN had been awarded the development licence in the area, and through the partnership, Statkraft gained access to a new and inter-esting market. However, the partnership was dissolved after a few years.

“We agreed to go our separate ways, because EVN did not want to make any major investments at the time,” explains Iyer Utne.

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.

BHILWARA ENERGY is the utility com-pany of the Indian industrial conglom-erate LNJ Bhilwara Group. Owns in joint venture with Statkraft:

MALANA POWER COMPANY Bhilwara Energy (51 per cent), Statkraft (49 per cent), which owns and operates:

MALANA HYDROPOWER PLANT Capacity 108 MW, annual production 370 GWh.

ALLAIN DUHANGAN HYDROPOWER PLANT Capacity 192 MW, annual production 802 Gwh.

FACT Bhilwara Energy


SUCCESS FACTORS Tima Iyer Utne does not deny that the process of dissolving the partnership was demanding for all parties involved.

“It was incredibly demanding for the teams to know that the project was constantly being reconsidered,” she says. “When a partnership does not work, the costs could be reduced motivation and you can end up with dysfunctional teams.”

Iyer Utne stresses the importance of shared goals and ambitions.

“It is essential to establish a robust strategic platform based on shared values and goals for the project. The platform must encompass strategies to address various forms of pressure.

“As soon as you start disagreeing how to handle issues, you have conflicts that may cause delays and/or cost overruns for the project in question,” Iyer Utne says.

EXIT CLAUSE The choice of govern-ance model is also very important when

establishing a joint venture. “Our expe-rience is that in the past, the importance of clear agreements on governance has been ignored,” Iyer Utne says. “How much autonomy should the joint venture have? To what extent should the parent companies be involved in daily operations? What hap-pens if one of the parent companies comes under pressure? How should the efforts of the parent companies be rewarded? How can one avoid redundancy if the parent companies have overlapping expertise? And so on …”

In some countries, it can be difficult to establish agreements that anticipate a possible break.

“Conflict and disagreements can arise in any project, so it is important to discuss and agree on an exit clause in the agreement,” says Iyer Utne. “In some countries, how-ever, this can be seen as a breach of trust. Generally speaking, it can be a challenge operating in countries with high emphasis on relations.”

The solution for the Devoll project in Albania was that Statkraft acquired EVN’s shares in 2013. Statkraft is cur-rently developing the project alone.

***

Back at Vang Farm, the Bhilwara and Statkraft representatives have spent the break from the meetings stretching their legs and taking group photos in the Norwegian summer evening. In addition to the obligatory meetings, concerts, museums and dinners are planned for the visitors. Each time the parties meet, understanding and knowledge of the other company culture and country grow, and new ideas are conceived.

“For this reason, these meeting are not just nice, but very important,” Iyer Utne says.

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.

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STATKRAFT CAN achieve competence building, risk sharing and added muscle to realise major projects through industrial partnerships. The partnerships include cooperating with companies possessing complementary knowledge and companies with overlapping expertise.

EXAMPLE: The Sheringham Shoal offshore wind farm (317 MW) is owned 50/50 by Statkraft and Statoil through the Scira Offshore Energy Limited joint venture. The project is based on Statoil’s offshore experience and Statkraft’s expertise as Europe’s largest producer of renewable energy. Statoil has been the operator of the development phase, while Statkraft is responsible for operations.

PARTNERSHIPS ESTABLISHED with financial players free up capital for developing projects. This way, Statkraft can apply its expertise and capacity to create growth and value.

EXAMPLE: This summer, Statkraft sold 49 per cent of three land-based wind farms in the UK: Alltwallis, Baillie and Berry Burn to Gingko Tree Investment Ltd. The agreement enables Statkraft to reinvest in new projects, while retaining its industrial role as the operating company of the wind farms. The three wind farms are organised in a new holding company, Wind UK Invest Ltd.

STATKRAFT CAN gain access to new projects and markets through partnering with players such as land-owners or licensees.

EXAMPLE: In Central Sweden, Statkraft has teamed up with Europe’s largest private forest owner SCA. The 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 venture, while SCA holds 40 per cent.

SHARING RISK AND DEVELOPING EXPERTISE

FREEING UP CAPITAL AND HIGHLIGHTING VALUE CREATION

ACCESS TO PROJECTS

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.

In a relationship-driven country, it can be perceived as a breach of trust to discuss an exit clause during negotiations.

FEATURE PARTNERSHIP


Partnerships spread risk and provide us with access to new projects, and not least, it is a way to free up resources and capital,” says the WPT

strategy senior vice president.This summer, Statkraft announced that

it was selling its ownership interests in three land-based wind farms in the UK. Statkraft remains the operator of the wind farms, with responsibility for operations and maintenance, market access and power sales agreements.

“Our partnership with Gingko Tree Investment Ltd is financial in nature,” says Vatnaland. “As a result of this agreement, we are able to reinvest in new projects. This is the first of several planned financial part-nerships for Statkraft.”

VALUE CREATION In other words, selling ownership interests is something we will see more often.

“Entering partnerships is a desired strat-egy supported by the board and executive management in Statkraft,” says Vatnaland. “The model we choose depends on what our objective is.”

Utilising the resources is an important objective in financial partnerships.

“It is about moving capital from facilities we have constructed to facilities we want to construct. Our expertise and capacity is best

utilised when applied to the areas where they create the most value,” Vatnaland says, adding: “Divestments are also an efficient way of demonstrating early value creation in a project.”

MARRIAGE OF CONVENIENCE Negotiat-ing a partnership is a slow and meticulous process, involving big teams on both sides. The agreements number hundreds of docu-mented pages.

“These are marriages of convenience, with detailed regulations through careful agreements,” Vatnaland says. “However, the human factor must not be lost. Trust is a key factor. So it is important to have a close dialogue and many meetings during a partnership process.”

Partnership between industrial parties can often be more demanding than finan-cial partners or landowners, especially with overlapping expertise. Who will have which functions? Who will be the operator, who will make what decisions?

“All these questions must be clarified in minute detail in the agreement frame-work,” Vatnaland says. “Normally, we establish a joint venture to operate the project. At the same time, the parent com-panies want to make use of their expertise. This is solved by lending personnel to the joint venture.”

It is important for Statkraft that the part-ners also carry their part of the risk.

“This has been a core issue in all partnership negotiations I have been part of, and particularly important when negotiating with financial partners,” says Vatnaland.

THE IDEAL PARTNER There are apparent benefits of owning and operating on your own, as you can utilise the company’s own systems and project tools. Vatnaland points out that there are advantages to stepping outside to take a good look at oneself from time to time.

“Entering a partnership is a process that requires discipline. We are forced to esti-mate costs for all activities, and we need to be professional from A to Z.”

And the word “professional” is probably characteristic of how the outside world views Statkraft. According to Vatnaland, Statkraft is, to many, the ideal partner.

“I do think we are regarded as a strong company with long traditions and solid expertise with a renewable profile to top it all off,” Vatnaland says. “During turbulent times, it is not a disadvantage to be owned by the Norwegian state. As a London-based investor told me recently; ‘You guys tick all my boxes’.”

The art of compromiseThere are months and months of intense nego-tiations behind a partnership agreement. An important aspect of the negotiators’ job is to speak for the counterpart in their own company.

“Negotiations are often about emotions. The parties involved need to 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 with Norwegian power companies NTE, Agder Energi and TrønderEnergi to develop three wind farms. He also participated in talks with Statoil regarding the Sheringham Shoal and Dudgeon offshore wind projects.

“An important aspect of the job is to speak for the counterpart in your own company,” he says. “Negotiators gain insight into what is important for our partner and where we should make a compromise.”

DIFFERENT STROKES The negotiating process is always different.“It is different negotiating with large international companies than with regional players,” explains Strugstad. “No matter their size, each company has its own culture, and to a certain extent, this culture is specific to their industry. When we negotiate with Statoil, their approach is characterised by the mechanisms of the oil industry.”

Creating a good atmosphere for the discussions is essential, as conflict and disagreements during the negotiations are a given. “When you are stuck, it is important to sit down together and find a solution,” says Strugstad.

The issues on the table are big and demanding, as is the distribution of risk and responsibility. And how to handle a possible exit.

“A lot can happen in a multi-decade project,” adds Strugstad. “You have to make agreements for many types of incidents, including improbable scenarios.”

MANY INVOLVED When Statkraft enters into a partnership, many departments in the company are involved. There is also a need for many different types of experts during the process. This means that the teams have a broad composition. All transactions in Statkraft are carried out in collaboration between the business areas and Mergers and Acquisitions (M&A).

“We receive a mandate from the project owner, and establish a pro-ject that handles the negotiations and development of the agreement,” says Anders Prietz, SVP head of Corporate Transactions.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.

Creating TAILWINDNot many years ago, Statkraft wanted to own their UK wind farms. This strategy has now turned upside-down. “Partnerships are the future,” says strategy senior vice president Jon Vatnaland of Wind Power and Technologies (WPT).

Jenny Bull Tuhus Jimmy Linus

FEATURE PARTNERSHIP


A successful collaboration FOR THE FUTUREStatkraft's partnership with the German forecasting company Energy & meteo systems had humble beginnings in 2011, with weather data. The partnership is now presenting innovative solutions, providing renewables with much needed predictability and availability in the German market.

1 | Bright future Almost 100 solar power produers are part of Statkraft's virtual power plant. 2 | Computer power The virtual power plant is operated from Düsseldorf. 3 | Partners Alexander Küppers of Statkraft and Ulrich Focken of Energy & meteo systems. 4 | Weather Vast amounts of weather data are needed to create good energy forecasts.

In an office in a quiet neighbourhood on the outskirts of Oldenburg in Northern Germany, two smiling men take their seats. Outside, the autumn sun is break-

ing through the clouds, bathing the rustling leaves in golden light. And it is the weather, and the ability to predict and exploit it, that has brought the two men together.

We are in the head offices of Energy & meteo systems, and the two men are Alexander Küppers from Statkraft's direct marketing team and Ulrich Focken, who founded Energy & meteo systems in 2004.

Today, the company is the world leader in wind and solar power forecasts for the energy market. Statkraft and Energy & meteo systems cooperated to develop the virtual power plant, a tool suited to service the energy demands of tomorrow. Accord-ing to the two, major changes are already visible in Germany.

"Currently, more than 25 per cent of the total energy consumption comes from wind, solar and bio gas energy,” says Küppers. “Wind and solar energy determine German electricity prices now."

EVERY LITTLE BIT HELPS Germany has plenty of small-scale power producers. These are often regular farmers and home-owners who have invested in electricity generation. Statkraft's direct market team work with purchasing energy from these producers, optimising it, and selling it on

the open market. Assisted by the expertise from Energy & meteo systems on fore-casting, combined with Statkraft’s market expertise, thorough computer programming and a healthy dose of innovation, they found a way to make all the small suppliers commercial as a large and reliable player in the energy market. This is how the invisible power plant was born.

“The virtual power plant is a concept created to exploit the flexibility in wind and solar in an optimal manner,” explains Focken.

In 2013 Germany introduced a new law stating that all small-scale power plants must be remote controlled – something that Energy & meteo had already been doing for six months.

CONSTRUCTIVE PARTNERSHIP Küp-pers and Focken add that there are many reasons for the partnership’s success. Both companies had a flexibility allowing full focus on the job at hand from day one. They also managed to create a constructive environment with a fun workplace, through close cooperation and nurturing openness and with room to learn from each other’s mistakes. This creates mutual trust between the co-workers.

SHARED GOALS According to Küppers and Focken, the close partnership between Statkraft and Energy & meteo systems was

never pre-destined, but rather developed naturally because the alliance worked so well. They believe the secret to the success is based on shared values and visions.

“We quickly realised that we had a lot in common,” says Focken. “Both companies focus on opportunities, not limitations. And both companies have progressive environ-ments that want to contribute to progress. In addition we share a desire for innovation, and not always primarily profit.”

Küppers adds: “Of course we look for financial gain, but not just that. Profit is well and good, but not at any cost. If a project provides us with important knowledge, we will consider it, even without prospects of short-term financial gains.”

Inge Kvivik Shutterstock and Inge Kvivik

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Both companies have progressive environments that want to contribute to progress.

FAKTA

STATKRAFT> market leader in

renewables in Germany

> first company to implement Market Premium in 2012, a solution stimulating 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

> delivers innovative solutions for auto-mation and integra-tion of renewables in the market

> develops virtual power plants in partnership with Statkraft

ABOUT THE PARTNERSHIP > regulated by a ser-

vice level agreement> software owned by

Energy & meteo systems

DO YOU WANT TO KNOW MORE Learn more about the virtual power plant in the Statkraft School on page 30 – the Statkraft School.

FEATURE PARTNERSHIP


Down on the wind farmThe 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

PHOTO FEATURE SHERINGHAM SHOAL


T 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

located 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.

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 electricity for another 400 000 British homes when it reaches full operation towards the end of 2017.

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 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 maintenance, the crew has to climb from the boat and up the ladder on the outside of the wind turbine.

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Down on the wind farm


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 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.

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30 STATKRAFT NO 3 2014

THE STATKRAFT SCHOOL VIRTUAL POWER PLANTS

ENERGY FORECASTS As the weather changes, there has been significant uncer-tainty associated with sales of most forms of renewable energy. In order to know how much power is available for sale at any given time, major resources have been allocated to estimate the volume of power generated. In order to achieve the most accurate forecasts, the estimates are based on massive amounts of weather data. A number of weather forecasts for leading meteorological institutions are combined, and connected with a statistical probability based on past weather. Included in all this are also special warnings on extraordinary weather phenomena, such as the impact of storms, which are predicted more accu-rately than before. The forecasts, which are for five days at a time, are updated every 15 minutes, and provide the virtual power plant with accurate real-time information

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.

Every little bit helps

Inge Kvivik Annette Holm Grøsland

on the amount of power available for sale at any given time.

AUTOMATISATION The process is man-aged from Statkraft’s dispatch centre in Düsseldorf. The virtual power plant con-tinuously receives weather data from each individual power supplier in the network. This constant flow of weather data is used to further improve the forecasts that deter-mine energy production. The virtual power plant can also adjust production in the blink of an eye.

“We use the virtual power plant to reduce production when a power surplus threatens to create negative prices in the energy market,” says Küppers. “We can send a signal to each wind farm, determin-ing how many MW each one should pro-duce. This enables the virtual power plant to balance supply and demand.”

FLEXIBLE FUTURE The goal is that the virtual power plant will integrate industrial consumers and storage solutions as well. This way, the virtual power plant will make solar and wind energy just as flexible and practical as conventional energy sources.

The virtual power plant will soon be able to deliver regulated power from wind and solar energy – the next important step towards complete integration of fluctuating energy sources in the power market.

VIRTUAL POWER PLANTS

WIND FARM

WIND FARM

DEMAND PROGNOSIS

GENERATION PROGNOSIS

POWER PRICE PROGNOSIS

BIOMASS POWER PLANT

THE POWER GRIDDISPATCH CENTRE

SOLAR POWER PLANT

HYDROPOWER PLANT

WE HAVE THE POSSIBILITY to send a signal to each single wind farm about how many MW to produce. That way the virtual power plant is able to balance supply and demand.

ON 28 AUGUST 2014, GERMANY’S SOLAR POWER GENERATION EQUALLED NORWAY’S DAILY POWER CONSUMPTION RECORD IN 2013

THE STATKRAFT SCHOOL

NO 3 2014 PEOPLE & POWER 31

7000 MWTHE VIRTUAL POWER PLANTAROUND 1000 WIND FARMS, 100 SOLAR POWER PRODUCERS, 12 BIOMASS POWER PLANTS AND EIGHT HYDROPOWER PLANTS

GENERATE A TOTAL OF 7000 MW

Changing weather causes major fluctuations in the availability of solar and wind energy. As a result, integration with the energy market

becomes problematic, as the market needs a predictable commodity that can be offered on a large scale depending on demand. It is this market adjustment Statkraft has found a solution to through its virtual power plant project in Germany.

“When we started this work in 2012, there was no continuous contact with the hundreds of wind energy turbines in the grid, and we had no idea how much they were generating,” explains Alexander Küp-pers, senior developer, in Statkraft’s Direct Marketing team in Düsseldorf.

“Today our solution delivers more than 7 GW of wind and solar energy.”

DECENTRALISED ENERGY RECOVERY Wind, solar, bio, and hydropower are gener-ated by a number of small-scale producers spread across Germany. The virtual power plant connects thousands of these small power producers. This enables the market to trade energy from one large, reliable sup-plier, and the power producers do not have to sell the power themselves.

“There are more than 1 000 wind energy plants in our system, with an installed capacity equivalent to about seven nuclear reactors,” Küppers says.

We use the virtual power plant to reduce production when a power surplus threatens to create negative prices in the energy market.

PEOPLE


AND ANIMALS

CURRENT AFFAIRS PEOPLE

New solutions The summer project group and CEO Christian Rynning-Tønnesen.

Game onDURING THE CONSTRUCTION of the Hitra wind farm in 2004, the deer moved away from the adjacent areas. They returned after the construction period. After ten years of operation, there are no reports of hunting diminishing. Rather the opposite, the roads built on Mount Eidsfjellet have made the hunting areas more accessible. Photo: Shutterstock

because of that, we are very proud of it. Ten years of operation has proven that the wind farm has the appropriate location, was thoroughly engineered and well operated by Power Generation.”

The Hitra wind farm gets most of its wind from the west and southwest. Wind direction and topography vary between the turbines. Turbine 24 is the wind farm’s biggest producer, and been given the moniker Money Maker by the operations crew at the wind farm. At times it pro-duces 20 per cent above the average for the wind farm.

OVER THE COURSE of nine hectic summer weeks, eight students have worked intensely with the great questions facing the future of the renewables industry – battery storage technology and business opportunities. The international student group presented its findings to Statkraft’s executive management in Oslo mid-August.

“We are pleased to make specific recommendations for how Statkraft can utilise battery storage technology today and in the future,” Silje Merete Grønning, one of the eight students, said in her introduction.

President and CEO Christian Rynning-Tønnesen was very pleased with the presentation.

“I believe what we just saw is the beginning of some-thing big. We will now assess all the proposals, and I hope to pursue several of them.”

Hosts for this year’s summer project were Continental Energy Development (MCD) and Business Development (MTB) in Düsseldorf.

Career jumpstart THE STATKRAFT TRAINEE PROGRAMME has accepted eight young men and women. For the next two years, they will work in four different areas of the company, according to their background and the company’s expertise needs. This year’s trainees hail from five different countries and have diverse education, primarily in technology and finance. They share a common wish to work with renewables and in Statkraft.3735 Statkraft is involved in activities in

more than 20 countries, and at the beginning of the year, employed a total of 3 735 people from 50 different nations. Twenty-three per cent of Statkraft’s employees are female.

THE HITRA WIND FARM in Central Norway invited the local community to celebrate its ten-year anniversary earlier this autumn. There were activities for the entire family, an uphill race, food and dancing. Hitra Mayor Ole Haugen held a congratulatory speech, and revealed that he had been a sceptic when he first heard about the project.

“I had to think it over for quite a while, as this was land that had been untouched for centuries,” Haugen told local paper Hitra/Frøya.

After ten years of operation, he is

very pleased with the partnership with Statkraft.

“The municipality has granted a license for the development of more wind energy turbines,” says Haugen. “We did this because it is important to confine the impact on nature to one area. In the rest of Europe, which Norwegians must take into consideration, the alternatives are coal and nuclear power. So I think it is great we can offer clean energy in the form of wind power.”

The Hitra wind farm (55 MW) has been a reliable producer of renewable energy.

Windy celebrations

THREE NEW MEMBERS were voted on to Statkraft’s Board of Directors: Hilde Drønen, Elisabeth Morthen and Harald von Heyden. Between 1999 and 2003 von Heyden was Head of Statkraft Continental Europe.

THE WIND WAS A TRUE TEAM PLAYER as the Berry Burn wind farm in Scotland invited the local community to celebrate the opening of the facility earlier this autumn. Kites in all the colours of the rainbow danced in the wind, brightening an otherwise grey and cloudy day. The weather did not prevent 450 guests from turning up to the event, which had activities for the entire family, such as a folk dance, face painting and releasing balloons. The Berry Burn wind farm is located south of Forres in northern Scotland. The facility comprises 29 wind energy turbines, with a total installed capacity of 66.7 MW. Net annual production is estimated at 183 GWh

When it was opened by then Minister of Trade and Industry Børge Brende (Con-servatives) in 2004, it was Norway’s largest wind farm. Today, it is the fifth largest in the country, and the fifth largest of all of Statkraft’s land-based wind farms.

The Hitra wind farm has not received the same attention as the wind farm on the neighbouring island, Smøla. Stian Ander-sen, asset manager for Statkraft’s Norwe-gian wind farms, feels that is a bit unfair.

“The Hitra wind farm has never really made the headlines, but it is a reliable energy producer,” says Andersen. “And

SOLUTIONS A-PLENT

From scepticism to popular feature


... the job I have a great opportunity to influence how my job as a new Executive Assistant will be. This is a new position that supports the executive vice presidents Asbjørn Grundt in Market Operations & IT, and Hilde Bakken in PG Production. The position will also strengthen the interaction between these two business areas. After two years as a trainee, working in Düsseldorf, Ankara and Lysaker, I hope to contribute what I know and at the same time learn more about the company as a whole.

... 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 founder Elon Musk is very inspirational, and shows us anything is possible for individuals as well.

... rough times As a young student I hit the wall pretty hard. The transition from a Norwegian high school to a French bachelors programme was tough, and it was a heavy blow not getting the grades I had expected. It made for a useful experience and I learned that things work out as long as you don’t give up.

... 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 the keyboard.

... 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 energy on a far grander scale. Statkraft’s vision and values were decisive for my choice to work here.

At age seven, she would hand out harsh notes to idling cars. Her passion for clean energy led her to France and the USA for her education, before choosing Statkraft. We asked Øydis Gadeholt about:

Name: Einar O. HaugenPosition: Senior HR advisor, UKCountry: From Norway to UKNumber of years in Statkraft: 16

Einar Haugen is a veteran within interna-tional HR and administration in a number 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 HR in Knapsack and Oslo.

Name: Isil OnanPosition: Senior communications advisor, Corporate CommunicationCountry: From Turkey to NorwayNumber of years in Statkraft: 3

Isll Onan has worked with corporate social responsibility for International Hydropower in Istanbul. She is now moving to Oslo to contribute to the inter-nationalisation efforts in our communica-tions work in Corporate Communication. She will work closely with the business areas within risk and reputation, as well as partnership development with humani-tarian and environmentalist organisations.

ON THE MOVE

Statkraft has 3 735 employees, and there is always someone changing jobs.

Jenny Bull Tuhus Tommy Andresen

Position: Executive AssistantDepartment: Corporate OfficeCountry: NorwayIn Statkraft since: 2012Age: 27Education: Master’s degree in Materials Science and Engineering from the University of Pennsylvania (USA).Current: Started in the new position as executive assistant this autumn, after two years as a Statkraft trainee.

ØYDIS GADEHOLT

OUR PEOPLE

CURRENT AFFAIRS OUR PEOPLE


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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 Kristofers, Sjur Gammelsrud, Helge Skoglund and Sven Erik Gabrielsen.

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.

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

Getting to the bottom of it

Conflict and bad relationships are a thing of the past. Now all parties are working together to help the researchers.

“The project has gone well so far,” says Statkraft project manager Angela Odel-berg. “Good production planning prior to the project provided optimum water levels and made it easier for the divers to see the riverbed. This enabled us to map almost the entire 20 kilometre section on the first three days.”

She is referring to a hectic period early this autumn, when divers mapped the section downstream from the Viforsen power plant. The days were spent searching for riverbed conditions that are particularly important to salmon, from the Viforsen power plant in Sundsvall municipality and all the way to the Gulf of Bothnia. The rele-vant riverbed conditions had to be mapped to the smallest details to gain as much insight as possible into the challenges faced by the salmon in the area.

Inge Kvivik Morten Stickler

“If we are able to map the bottlenecks the salmon encounters in the river, we can to a greater degree determine the measures that would actually help,” Odelberg says.

FROM CONFLICT TO COOPERATION Statkraft faced harsh criticism in Ljungan for some time. Anglers were upset over how Statkraft ran the river, and the debate raged in media and the community.

One of the reasons for the conflict was that Statkraft was unaware of an agreement concerning water flow downstream of the Viforsen power plant, between SMHI (The Swedish Meteorological and Hydrological Institute) and the energy company that used to operate the plant. After an acci-dental lowering of the water levels, many feared for the salmon eggs. Both Statkraft and the environmentalist group Älvräd-darna (The River Rescuers) reported the incident to the county, which resulted in a SEK 150 000 fine for Statkraft.Instead of a quick correction, a decision

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GOODNEIGHBOURS

Ljungan

THE LJUNGAN is a 350 kilometre long river in northern Sweden.

THE LJUNGAN PROJECT is an administrative collaboration initiated by Statkraft. It focuses on the last 17 kilometres of the river.

STATKRAFT owns five power plants on the river, including Viforsen.

THE PROJECT makes use of the environment manual on envi-ronmental design in developed salmon river systems, prepared by the CEDREN research centre. The manual is also available in English.

FIELDWORK in the river was conducted between 18 and 20 August 2014.


STATKRAFT NATION BRAZIL

INHABITANTS: 200 millionCAPITAL: BrasiliaSYSTEM OF GOVERNMENT: RepublicPRESIDENT: Dilma RousseffLANGUAGE: Portuguese

Brazil is the largest country in Latin America, in terms of population, size and economy. The country has significant automotive, petrochemical, electronics, cement and construction, aviation, textile and mining sectors.

Annual consumption of 425 TWh, based on a production capacity of 123 GW. Demand for electricity is rising, mainly due to a growing middle class and major infrastructure projects.

Hydropower constitutes 75 per cent of the production capacity. Most of the large hydropower plants are state- owned. Private players have recently invested heavily in wind farms.

BRAZIL

ENERGY MARKET

DID YOU KNOW ...

THE CAPITAL BRASILIA was built in just 41 months, between 1956 and 1960.

THERE ARE about 2500 airports in Brazil.

THE COUNTRY has has three time zones.

THE NATION’S RAIN FOREST constitutes 60 per cent of the Amazon basin.

THE NATIONAL DRINK is called caipirinha and is made from lime, sugar, ice cubes and cachaça.

THE NAME BRAZIL is derived from the Brazil wood tree.

... the length of Brazil’s coastline. Statkraft’s second southernmost wind farm, Barra dos Coqueiros, is located in the state of Sergipe, where waves meet land.

Statkraft considers Brazil to be a key growth market in years ahead. In 2012, Statkraft acquired a stake of 40.65 per cent in Desenvix, a company with interests in renewable energy. Statkraft also has significant and growing market operations based on the Enerpar portfolio, acquired from Norske Skog in 2011.

STATKRAFT IN BRAZIL

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10

7

56

398

4

2

POWER PLANTS

1–2 3–10

1 BAHIA WIND FARM

2 BARRA DOS COQUEIROS WIND FARM

3 CERAN

4 DONA FRANCISCA

5 ESMERALDA SHP

6 MOINHO

7 MONJOLINHO

8 PASSOS MAIA

9 SANTA LAURA

10 SANTA ROSA II

7491KILOMETERS

was made to implement a thorough study involving all stakeholders on the river.

“It didn’t feel right just to comply with the order. The river Ljungan is home to important biodiversity, including a unique salmon population well worth protecting,” says Odelberg.

The county administration, Sundsvall municipality, anglers in the Ljungan and the fish protection areas Tuna Östra and Nedre Ljungan, are just some of the players coop-erating with Statkraft in the Ljungan project. Odelberg explains that the background for the cooperation was a need for dialogue and joint understanding.

“The various parties are not necessarily familiar with the intentions and challenges of the others,” she says. “Through the meetings, anglers and locals have received a greater understanding of our side of the story, and we have gained insight into what is important for the locals.”

Per Nordlund, director of Statkraft Swe-den, is also interested in how the approach can be applied to other river systems.

“It is important for Statkraft to obtain knowledge in order to balance energy and environment considerations in a sound way,” he says.

RESEARCHERS AND DIVERS During the first phase of the project, the hydrology of the river system was analysed by Norway’s SINTEF. Fieldwork on the riverbed was carried out this autumn. Where do we find rocks? Where is the riverbed sandy? Where is the gravel size good for spawning? Are

there sediments that clog up hiding places for the spawn? Are the suitable areas few and far between?

The purpose of the wet and slow work, wearing mask, snorkel and a rubber suit, was to find the good, dry facts.

The data is collected in a digital map, and forms the basis for the rest of the project.

“Historically, in order to improve con-ditions in salmon-bearing rivers, measures have been implemented without sufficient prior mapping,” Odelberg says. “This has led to random, and not necessarily positive, results. Through systematic methodology, we have a greater chance of succeeding.”

TESTING THE ENVIRONMENT MANUALStatkraft has a long tradition of cooperating with various national and international research institutions. This has contributed to the company now possessing some of the most efficient and most environmentally friendly hydropower plants in the world.

Norway’s CEDREN is one of 11 research centres within environmentally friendly energy (FME centres). The Research Council of Norway and the energy industry fund CEDREN. Statkraft is the single largest financial contributor from the indus-try, with investments of NOK 55 million. Experts from Statkraft are also involved in the centre’s projects, such as the Ljungan project. One of them is senior environmen-tal advisor, Morten Stickler.

“Last year, CEDRAN developed a manual for environmental design in developed salmon-bearing river systems (see previous

issue of People&Power),” Stickler says. “The Ljungan project is based on this work.”

The manual is divided into two main parts. The first part looks at challenges and diagnosis, the second part focuses on possible solutions and measures.

“It is important to take one step at a time in order to do the right things at the right time in a competent and cost-efficient way,” Stickler says. “Experts from various leading research communities in Norway are now working to complete the first part of the Ljungan project. By doing this, we are transferring sound knowledge and precedence to Sweden. In addition to the manual mapping, we are also testing a new method of scanning the river from the air, using so-called green lasers.”

“This helps us check new and old me -thods against each other, and obtain new knowledge.”

THE FUTURE OF THE SALMON Although the researchers have been at it for days, it is still too early to say what will be required to safeguard the salmon population in the Ljungan. Time will show whether habi-tat measures are implemented – such as introducing spawning gravel, cleaning gravel banks or establishing new hiding places. One thing is hopefully certain: There will be salmon enjoying themselves in Ljungan in for many years to come.

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 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.

3 4

The river Ljungan is home to important biodiversity.

CURRENT AFFAIRS GOOD NEIGHBOURS

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new solutions powerful network - statkraft · 2015-01-18 · collection “chasing new ideas”,...

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