Value creation in Norway dependent on new power grid
(10/2/2010)
Statnett is planning to invest a total of NOK 40 billion in developing and upgrading a new power grid in Norway in the period leading up to 2020.
Statnett presented its 2010 Grid Development Plan. ”These investments are vital for future value creation across Norway, to our commitment to new renewable energy and to be able to equalise differences in electricity prices,” says Auke Lont, President and CEO of Statnett. The Grid Development Plan is Statnett’s most important planning tool for main grid developments in the years ahead.
”Our planned investments will improve security of supply and pave the way for a commitment to renewable energy and value creation across Norway. In the last 15 years we have experienced increasing use of the existing power grid. To be able to meet a continuously increasing need for grid capacity, we now have to either construct a new power grid or upgrade the current grid from 300 kV to 420 kV,” says Lont.
Necessary for renewable energy
The largest investments will have to be made in Northern and Central Norway.
A transmission interconnector from Ørskog in Sunnmøre to Fardal in Indre Sogn and a 420 kV line from Ofoten to Balsfjord continuing to Hammerfest are two of the major development projects Statnett will embark on in Norway over the next few years. Lont emphasises that the development plans are necessary for local business development and will pave the way for value creation across the country.
”Central Norway has seen particularly high electricity prices. The planned developments in Central Norway will remove the bottlenecks that have contributed to high electricity prices in the region during peak consumption periods. Once the bottlenecks have been removed, the price differences will be evened out, and we will see more equal prices throughout the country. This will improve the competitiveness of businesses in Central Norway,” says Lont.
Electricity supply to Goliat and Snøhvit from land is dependent on the planned grid investments in the counties of Nordland, Troms and Finnmark. Moreover, the developments are necessary for renewable energy commitments such as wind and hydropower.
”Without these investments it would not be possible to make use of the pure energy available in different parts of Norway. A new interconnector between Ørskog and Fardal will therefore be important for the development of new renewable power production in Sogn and Fjordane County. In Hardanger several hydropower development plans are on hold until there is more capacity to transport the pure energy. In addition to the plans for a new interconnector between Ørskog and Fardal, Statnett has been granted a licence to construct a new 420 kV line from Namsos to Storheia in Fosen. The line is necessary to be able to realise the extensive plans for wind power in Central Norway, as the current grid in Fosen does not have sufficient capacity to receive the power.” Lont says.
Building for the future
”We want to construct new power lines to be able to meet the need for new grid capacity today and in the future. We need increased capacity in the power grid to be able to secure future security of supply and value creation. It is our job to make this known.” Lont says.