-For a long time, we have said that the future is electric. Now, we are experiencing a green change of pace. Our analyses show that power consumption may reach 220 TWh in 2050 in Norway, although this number is conditional on several factors. As a company, we will facilitate this growth, and we will prepare so that the transmission grid is ready for this development, says CEO Hilde Tonne of Statnett.

Big Challenges and Ambitious Goals

The expectation that power consumption will increase significantly affect Statnett's operations. Thus, the company is in the process of finalizing a new strategy. This will prepare the company, so that it can ensure continued good security of supply and facilitate sustainable value creation based on an energy system that delivers on the target of zero emissions in 2050.

-This green change of pace outlines a clear mission for Statnett. We need to improve planning processes, increase the pace and work more closely with both the energy sector and emerging industry. Although there is uncertainty about what the future holds and many plans are still immature, we shall succeed in this. As the power grid is a critical factor for us as a nation to achieve our goals, we must prepare for developments as outlined in the most ambitious scenarios in our analyses, emphasizes CEO Hilde Tonne in Statnett.

Clearer direction towards zero emissions

Every two years, Statnett publishes a Long-Term Market Analysis (LMA) which makes forecasts for the development in power consumption, production, and the power price in the Nordic countries and in Europe. An update of the LMA published in the autumn of 2020 shows developments in several factors and that the direction towards zero emissions in Europe seems even clearer, with a faster European restructuring of the energy system and industry. The EU's tightening of emissions targets for 2030 and the sharp growth in the carbon price over the past six months provide increased incentives for electrification and stimulate growth in new green industries.

In Norway, developments over the past six months have increased our confidence in our main forecast for Norwegian consumption development, especially for the coming decade. At the same time, Statnett sees that the number of inquiries from new companies that want to connect to the grid continues to increase sharply and a number of existing industrial and electrification projects have been concretised. Developments in Norway are also supported by political signals, including through the Norwegian Government's white paper "Energy for work".

-In the time to come, we as a company face major tasks. Our new strategy will ensure that we solve them, but also point to areas where we need to readjust. We must to a greater extent look at the totality of the power system and develop the grid in line with this picture, both regionally and nationally. At the same time, we must develop new innovative solutions, ensure future-oriented digitization and work more closely with our surroundings, says Hilde Tonne.

-The requirements for a secure power supply are also becoming ever more paramount in a society that is to a greater extent dependent on electricity. As an integrated system operator for the electrical energy system in Norway, we must use all the tools at our disposal to utilize technology and market mechanisms that facilitate this. Last but not least, the power system of the future requires greater flexibility and consumers who are integrated in the power system, Tonne emphasizes.

More information about Statnett's new strategy will be published in the fall of 2021.