Statnett made investments of NOK 9.2 billion in 2017 (NOK 7.7 billion in 2016). This reflects high activity levels, expected to continue in the coming years.
Statnett completed several investment projects in 2017, including the entire new line from Ofoten to Balsfjord. We have also upgraded the voltage on the Klæbu–Namsos–Nedre Røssåga line. These projects, together with completed substation projects, have contributed to strengthen security of supply in Central and Northern Norway.
Several of our development projects will also facilitate new renewable energy projects and contribute to value creation locally, as well as improved supply.
We are making good progress in replacing the two cable connections over the Oslo Fjord, which is of major importance for security of supply in the Oslo region and the connector with Sweden. We are also well underway with the construction of two new interconnectors to Germany and the UK, scheduled to be completed by 2021.
Statnett is in a period of historically high investment levels. We invested around NOK 40 billion in grid projects in the period 2012–2017. The investments related to around 950 kilometres of new power lines, upgrading of more than 375 kilometres of existing lines, 82 new and upgraded substations, as well as a number of cable projects.
In parallel with the construction projects, we are working with the rest of the industry to develop market solutions and digitalise the power system to make it more intelligent and secure. Among other things, we have invested in ICT infrastructure to make asset operations more robust, as well as in new systems for balancing the power system, both nationally and in the Nordic region. The balancing model will be implemented with support from the joint Swedish–Norwegian ICT company Fifty AS.
Stable facility and system operations contributed to good delivery reliability in 2017, despite our extensive construction activities. At the same time, there were more planned outages in 2017 due to new builds, voltage upgrades and normal maintenance. At 99.999 per cent, our delivery reliability reached the target for the year.
At the end of the year, two severe storms, Ylva and Aina, tested the grid system, causing several power line outages, though with no long-term consequences for end-users. The operating organisation was well prepared and managed the situation efficiently.
HSE and efficiency
Statnett has an ambitious goal being in a leading position within HSE and contributing to positive HSE development in the power industry. HSE results for 2017 developed in a positive direction despite the Group’s increased activity.
Statnett has an extensive efficiency programme, with a target of achieving a 15 per cent increase in efficiency from 2013 to 2018. This target covers all activities at Statnett and encompasses efficiency improvements in the operation of existing infrastructure, development projects and support functions. Our work has generated significant savings and indicators point to solid improvements during the programme period. We expect that these improvements will produce a positive effect on tariffs of around NOK 5 billion accumulated over the decade 2016–2025.
In 2017, Statnett posted a consolidated underlying profit after tax of NOK 1,304 million (NOK 1,398 million). Permitted revenue was higher than in 2016 due to volume growth in grid infrastructure, which in turn resulted in a higher return on grid capital. This was offset somewhat by a lower NVE interest rate. Operating expenses increased in line with higher activity levels, and higher depreciation and write-downs are primarily due to a higher asset base.
The Group posted a consolidated accounting profit after tax of NOK 813 million (NOK 645 million). The accounting result was higher than in 2016. Higher operating revenue following a change in the tariff rate were somewhat offset by an increase in operating expenses and depreciation. At the same time, results from Statnett’s efficiency-improvement programme has contributed to a lower cost increase than the increased activity normally would imply.
For more information, please contact:
Knut Hundhammer, Executive Vice President/CFO
Cellphone: +47 901 65 299
Media inquiries: +47 23 90 40 00