NAG
Nordic Energy ways in Europe
– Clean, Competitive and Connected
Ola Alterå
Stockholm
20 mars 2014
NAG
Nordic Action Group
on Climate and Energy
Hördur Arnarson CEO, Landsvirkjun, Iceland
Carl Bennet Chairman, Getinge, Sw...
NAG
Nordic Energy Ways in Europe
- Clean, Competitive and Connected
NAG
Background and assumptions
• The Nordic countries are comparably far in
transition to sustainable energy
• Nordic gove...
NAG
IEA first regional Energy Technology
Perspectives report – together with
Nordic Energy Research
Yes, we can:
“A near c...
NAG
IEA first regional Energy Technology
Perspectives report – together with
Nordic Energy Research
It´s easier together:
...
NAG
Main message from NAG
• Governments and industry have a story to tell in
the EU
– especially the trans boundary electr...
NAG
1. High Efficiency Economy
• Transport sector
• Housing sector
• Industry and Service Sector
Recommendations
• Take le...
NAG
2 Nordic Battery and Renewable
Energy Hub
Potential of substantial net export of renewable energy
(electricity, maybe ...
NAG
Nordic Electricity Market
NAG
Exporting electricity?
• Assume export of 50-100 TWh of renewable electricity (IEA)
• Yearly export earnings of € 5-10...
NAG
3 Nordpool 3.0
The worlds first and most successful multinational
power market. Can develop further with flexible
supp...
NAG
Financing
• Bring together a large number of national and
Nordic entities under a “Nordic Energy
Financing Center”, no...
NAG
Nordic Energy Green Clusters with
potential
• Wind power - focus on cold climate, off shore and
forested areas.
• Clim...
NAG
Is there a Nordic Way?
• Systems approach
• Market based solutions and instruments
• Cost efficient measures
• Transpa...
NAG
Impressing Energiewende
Solar power Germany 2012: 28 Twh
-
5.0
10.0
15.0
20.0
25.0
30.0
2000 2001 2002 2003 2004 2005 ...
NAG
Renewable support systems
German Feed In Tariffs
• Control of unit price
• Uncertainty about volume
• Differentiated b...
NAG
Same, same - but different
• Similar volume of new renewable electricity
production per capita
• Similar present pace ...
NAG
THANK YOU!
Ola Alterå
CEO Sustainable Innovation
Senior Adviser to Global Utmaning
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Nordic Energy ways in Europe – Clean, Competitive and Connected

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A presentation given in Stockholm, March 20th 2014, by Ola Alterå,
at Global Challenge's and E.ON's seminar "A Nordic Energiewende?"

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Nordic Energy ways in Europe – Clean, Competitive and Connected

  1. 1. NAG Nordic Energy ways in Europe – Clean, Competitive and Connected Ola Alterå Stockholm 20 mars 2014
  2. 2. NAG Nordic Action Group on Climate and Energy Hördur Arnarson CEO, Landsvirkjun, Iceland Carl Bennet Chairman, Getinge, Sweden Ingrid Bonde CFO, deputy CEO Vattenfall , Sweden Anders Eldrup Former CEO DONG Energy, Chairman Copenhagen Cleantech, Denmark Henrik Ehrnrooth Chairman, Caverio, Pöyry och YIT, Finland Ulrik Federspiel Executive Vice President Haldor Topsoe A/S, Denmark Anders Olsson Deputy CEO E.ON Norden, Sweden
  3. 3. NAG Nordic Energy Ways in Europe - Clean, Competitive and Connected
  4. 4. NAG Background and assumptions • The Nordic countries are comparably far in transition to sustainable energy • Nordic governments aim at Zero emission targets for 2050 (IEA interpretation) • Will necessitate very large investments in renewables, transmission, energy efficiency and transport systems • A proactive, bottom-up approach from Nordic Business can lead to competitive strength for the Nordic region
  5. 5. NAG IEA first regional Energy Technology Perspectives report – together with Nordic Energy Research Yes, we can: “A near complete decarbonisation of the Nordic energy system is possible – but very challenging.”
  6. 6. NAG IEA first regional Energy Technology Perspectives report – together with Nordic Energy Research It´s easier together: “Strong co-operation among Nordic countries can reduce the cost of reaching the scenarios. Co-ordination of policies, RD&D and infrastructure development could accelerate technology development and penetration towards a low-carbon energy system.”
  7. 7. NAG Main message from NAG • Governments and industry have a story to tell in the EU – especially the trans boundary electricity market • We can do more - and it is more efficient if cooperating closer • The transition will need a gradually higher price on CO2 • Nordic Green Industrial Clusters can develop further and grow
  8. 8. NAG 1. High Efficiency Economy • Transport sector • Housing sector • Industry and Service Sector Recommendations • Take lead in early market for electric cars. • Pioneering region in electrification of roads. • Nordic building standards, gradually strengthened towards zero. • Use the EU compulsory energy declaration as a basis for targets based on Nordic best practice. • Nordic voluntary scheme for energy improvements for industries, including tax incentives and sharing of know-how.
  9. 9. NAG 2 Nordic Battery and Renewable Energy Hub Potential of substantial net export of renewable energy (electricity, maybe biofuels) as well as a balancing region on the European electricity markets Recommendations • Increase integration across Nordic renewable support schemes • Utilize co-operation mechanism within the EU RES directive • Technology specific support only for non mature technologies • New transmission investments within Nordic counties and to continental Europe
  10. 10. NAG Nordic Electricity Market
  11. 11. NAG Exporting electricity? • Assume export of 50-100 TWh of renewable electricity (IEA) • Yearly export earnings of € 5-10 billion (long term). • Reducing European CO2 emissions by 40-90 million tonnes (replacing coal condensing power) • Reduced cost for European climate policy • Increase potential for wind and solar in northern Europe. • Secure cost benefit for Nordic business relative to continental Europe • Industrial development, improved investment climate, innovation, jobs creation, stronger competitiveness etc. in the Nordic countries. Export electricityprice the lowest assumption among IEA main scenarios, USD 136/MWh
  12. 12. NAG 3 Nordpool 3.0 The worlds first and most successful multinational power market. Can develop further with flexible supply, export of surplus and flexible demand in real time. Recommendations • Design the Nordic market to retain and develop flexibility. • Promote Nordic solutions for Europen market design. • Strengthen R&D efforts to adapt Nordpool to the emerging energy scene.
  13. 13. NAG Financing • Bring together a large number of national and Nordic entities under a “Nordic Energy Financing Center”, not to replace present institutions but to take a leading role in coordinating the present institutional set-up.
  14. 14. NAG Nordic Energy Green Clusters with potential • Wind power - focus on cold climate, off shore and forested areas. • Climate efficient biofuels from indigenous sources. • Electrification of transport including vehicles, charging infrastructure and electrification of roads. • Combined operation of heat and electric power systems, including efficient use of heat pumps. • Smart electrical grids combining IT with power. • Solar power solutions.
  15. 15. NAG Is there a Nordic Way? • Systems approach • Market based solutions and instruments • Cost efficient measures • Transparent markets • Not subsidizing fossil energy • Diversity...!
  16. 16. NAG Impressing Energiewende Solar power Germany 2012: 28 Twh - 5.0 10.0 15.0 20.0 25.0 30.0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 • 5% av total elproduktion Thank you Germany. Generous subsidies have reduced prices drastically: today 25% of the price 5 years ago. Getting competitive without subsidies on some markets....
  17. 17. NAG Renewable support systems German Feed In Tariffs • Control of unit price • Uncertainty about volume • Differentiated by technology • Driver for new technologies • Participation of small market actors -> public acceptance • Effective in development of technologies and industries Sw-No Certificates • Control of volume • Uncertainty about unit price • General for renewables • Only mature technologies competitive • Cost efficient to reach target • First cross boarder system?
  18. 18. NAG Same, same - but different • Similar volume of new renewable electricity production per capita • Similar present pace in increased production per capita • Different leading technologies • Direct, short term costs per kWh for Swedish electricity consumers about 1/10 of German consumers
  19. 19. NAG THANK YOU! Ola Alterå CEO Sustainable Innovation Senior Adviser to Global Utmaning

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