Chapter 6: Energy
Zeroing in on renewables
 | ||
Describing energy agency Enova's newly announced results for 2009 as the best to date, the minister noted that about NOK 3.4 billion had been invested that year in projects involving renewable energy and energy efficiency.
However, achieving Norway's goal of reducing domestic greenhouse gas emissions by 15-17 million tonnes by 2020, or 30 per cent, is likely to be more expensive than previously thought, according to a government study assessing some 160 proposed measures in six sectors: transport, oil and gas, shipping, industry, agriculture and energy. Estimated costs ranged from "socio-economically profitable" to nearly NOK 4,000 per tonne of CO2. The study's findings are to be incorporated in a government White Paper on climate policy due in autumn 2011.
In the meantime, Europeans welcomed Norway's decision to participate in a joint initiative between nine EU countries on developing an offshore energy grid to link up wind farms in the North Sea region. Mr Riis-Johansen said the Norwegians would bring to the project a great potential for wind power, largely unexploited to date, and extensive experience in offshore construction.
A leading role
In Norway, as elsewhere in the West, the energy sector has been dominated for the past several years by issues of climate change and the perceived need to reduce or offset greenhouse gas emissions.
Addressing the annual congress of the Labour Party in April 2007, Prime minister Stoltenberg announced the government's intention that Norway should take "a leading role in the development of a new, binding climate agreement, a follow-up agreement to the Kyoto Protocol that ensures more extensive emissions cuts than we have today".
After outlining a series of interim emissions targets, Mr Stoltenberg then declared the most ambitious aim of all: to make Norway "carbon neutral" by 2050 - a deadline the government would tighten even further, to 2030, less than a year later.
This venture did not necessarily mean reducing absolutely all Norwegian emissions to zero, the Prime Minister went on to explain; rather that "each tonne of greenhouse gases emitted is to be offset by an equivalent reduction elsewhere". Norway, in other words, would undertake to reduce global greenhouse gas emissions equivalent to 100 per cent of its own emissions.
 | ||
Another way to cut emissions is, of course, to encourage energy savings and the development of alternative and renewable energy sources such as solar or wind power, hydrogen or biofuels, and to discourage if not prohibit more polluting conventional technologies.
Accordingly, a subsequent White Paper on climate policy - in effect, an account of how the authorities were proposing to fulfil the prime minister's "carbon neutral" pledge - called for a trebling of investment in energy efficiency and renewables of up to NOK 10 billion over the next five years, and a target for bioenergy generation of 14 TWh by 2020. The government's announcement in early 2009 that it was to join the newly founded International Renewable Energy Agency (IRENA), which aims to promote the use of renewable energy on a global scale, particularly in developing countries, confirmed Norway's commitment to this technological approach.
Additional proposals in the White Paper included:
- a demonstration programme for wind power and other renewable technologies offshore
- a ban on oil-fired heating in new buildings and subsidies for conversion to renewables in existing buildings
- a two per cent target for biofuels in road transport from 2008, rising to five per cent in 2009 and possibly seven per cent in 2010
- a development programme for climate measures in agriculture.
Energy use in Norway has always been relatively high - hardly surprising, given our cold climate and the need for transport over long distances. Our abundant reserves of cheap, non-polluting hydropower have resulted in a long tradition of high electricity consumption, and have provided little incentive for energy efficiency or the development of alternative energy sources. Electricity consumption per person in Norway is almost certainly the highest of any country in the world. However, as most of the available hydropower capacity has been developed, any further rise in consumption must be met by fossil fuels or other energy sources.
The issue became particularly urgent after the winter of 2002-2003, when Norway suffered what can only be described as an energy panic. Weeks of below zero temperatures in double figures the length and breadth of the country aggravated a national shortfall, brought about in part by aggressive sales of surplus electricity abroad during the spring and summer, driving spot prices to record levels and prompting scare headlines on a daily basis.
Given Norway's near-total dependence on hydro-electricity for domestic heating, the crisis brought real hardship to many individuals and families already struggling with excessive debt and a cost of living that is among the highest in the world. Many found their electricity bills had more than doubled. A number of deaths were at least partly attributed to hypothermia as the elderly reacted to the scare by turning their heating down or off.
If nothing else, the situation focused the minds of politicians on the need to speed up the development of renewable energy sources and energy-saving strategies. And just in case any memories needed jogging, the winter of 2009-10 - the longest and coldest for decades - came as a harsh reminder.
 |
Enova, Gassnova and CCS
Enova, the government energy agency, was launched in 2002 by the Ministry of Petroleum and Energy (OED) to promote and fund "environmentally sound and rational use and production of energy, relying on financial instruments and incentives to stimulate market actors and mechanisms to achieve national energy policy goals".
Measures to improve energy efficiency and save energy, for example in the construction and operation of buildings, are complemented by policies aimed at increasing flexibility in the energy supply, reducing dependence on direct electricity for heating, and boosting the share of renewable energy sources other than large hydropower in the energy supply mix. Typical strategies include increasing the use of water-based central heating using new renewable energy sources, heat pumps and waste heat; encouraging wind power development, and making more environment-friendly use of natural gas.
In 2005 the OED created another agency, Gassnova, "to promote innovative, sustainable and cost-effective gas technologies". Gassnova acts jointly with the Research Council of Norway as manager of the CLIMIT programme for natural gas power generation with carbon capture and storage (CCS).
CCS technology is to be installed, at state expense, in pollution-free gas-fired power stations. The captured CO2, injected into the seabed, not only reduces Norway's "carbon footprint", but can also be used to enhance oil recovery. (Norway's pioneering development of CCS is examined in detail in North Sea Saga, Horn Forlag's tribute to the inspiring history of the Norwegian petroleum industry and the technological innovations that have shaped it.)
CLIMIT focuses on aspects of geological storage: leakage risks, supplier development and storage sites in particular.
As many other countries are directing considerable scientific resources towards advances in coal power, the programme's remit has also been expanded to include fossil fuel-based energy in general.
In April 2010, Gassnova announced triumphantly: "We're out of the blocks." Construction had started on a NOK 5 billion European CO2 Technology Centre at Mongstad, an "arena for capture technology demonstrations" that will cover an area the size of eleven football fields, and projects for CO2 transport and storage and full-scale CO2 capture at Kårstø and Mongstad were being evaluated.
Enova, the government energy agency, was launched in 2002 by the Ministry of Petroleum and Energy (OED) to promote and fund "environmentally sound and rational use and production of energy, relying on financial instruments and incentives to stimulate market actors and mechanisms to achieve national energy policy goals".
Measures to improve energy efficiency and save energy, for example in the construction and operation of buildings, are complemented by policies aimed at increasing flexibility in the energy supply, reducing dependence on direct electricity for heating, and boosting the share of renewable energy sources other than large hydropower in the energy supply mix. Typical strategies include increasing the use of water-based central heating using new renewable energy sources, heat pumps and waste heat; encouraging wind power development, and making more environment-friendly use of natural gas.
In 2005 the OED created another agency, Gassnova, "to promote innovative, sustainable and cost-effective gas technologies". Gassnova acts jointly with the Research Council of Norway as manager of the CLIMIT programme for natural gas power generation with carbon capture and storage (CCS).
CCS technology is to be installed, at state expense, in pollution-free gas-fired power stations. The captured CO2, injected into the seabed, not only reduces Norway's "carbon footprint", but can also be used to enhance oil recovery. (Norway's pioneering development of CCS is examined in detail in North Sea Saga, Horn Forlag's tribute to the inspiring history of the Norwegian petroleum industry and the technological innovations that have shaped it.)
CLIMIT focuses on aspects of geological storage: leakage risks, supplier development and storage sites in particular.
As many other countries are directing considerable scientific resources towards advances in coal power, the programme's remit has also been expanded to include fossil fuel-based energy in general.
In April 2010, Gassnova announced triumphantly: "We're out of the blocks." Construction had started on a NOK 5 billion European CO2 Technology Centre at Mongstad, an "arena for capture technology demonstrations" that will cover an area the size of eleven football fields, and projects for CO2 transport and storage and full-scale CO2 capture at Kårstø and Mongstad were being evaluated.
Research centres
Another major player is the Institute for Energy and Technology (IFE), an independent foundation established in 1948. With a staff of about 550, IFE's many areas of activity include research and development in eco-friendly technologies for oil and gas production, power generation and supply, and energy use; current emphasis is on developing "a more climate friendly energy system based on renewable and CO2-free energy sources".
In 2005, IFE joined forces with the SINTEF Group, the largest independent research organisation in Scandinavia, and the Norwegian University of Science and Technology (NTNU) in Trondheim to form the Centre for Renewable Energy (SFFE).
April 2010 - clearly a good month for CCS! - saw the official opening of a new centre for research into CO2 storage headed by Christian Michelsen Research (CMR).
In 2009, no fewer than eight new national centres for environment-friendly energy research (CEERs) were set up with funding from the government and the Research Council in aid of "a strong effort in some selected areas of renewable energy research and CCS". They are:
Another major player is the Institute for Energy and Technology (IFE), an independent foundation established in 1948. With a staff of about 550, IFE's many areas of activity include research and development in eco-friendly technologies for oil and gas production, power generation and supply, and energy use; current emphasis is on developing "a more climate friendly energy system based on renewable and CO2-free energy sources".
In 2005, IFE joined forces with the SINTEF Group, the largest independent research organisation in Scandinavia, and the Norwegian University of Science and Technology (NTNU) in Trondheim to form the Centre for Renewable Energy (SFFE).
April 2010 - clearly a good month for CCS! - saw the official opening of a new centre for research into CO2 storage headed by Christian Michelsen Research (CMR).
In 2009, no fewer than eight new national centres for environment-friendly energy research (CEERs) were set up with funding from the government and the Research Council in aid of "a strong effort in some selected areas of renewable energy research and CCS". They are:
- Research Centre for Offshore Wind Technology
- The Norwegian Research Centre for Solar Cell Technology
- Bioenergy Innovation Centre (CenBio)
- Centre for Environmental Design of Renewable Energy
- The research Centre on Zero Emission Buildings
- BIGCCS Centre (CO2 management)
- Norwegian Centre for Offshore Wind Energy
- Subsurface CO2 storage.
Each CEER is to receive up to NOK 20 million annually over five years, with possible extension up to eight years. The CEERs are to "develop effective solutions for environment-friendly energy production and increase Norwegian expertise in the field", the Research Council said. "In the long run they will also stimulate new industrial activity and create new jobs."
The Renergi project
"Clean Energy for the Future" (Renergi) is a ten-year Research Council project focusing on "environment-friendly, economically efficient and effective management of the country's energy resources, a highly reliable energy supply and internationally competitive industrial development related to the energy sector".
In its work programme for 2004-2013, Renergi identifies target areas for renewable energy production as the optimization and environment-friendly development of hydropower installations, the use of solar heating in buildings, biofuel production and exploitation based on wood and waste, wind power (in particular offshore) adapted to Norwegian conditions, and "the exploitation of energy from the ocean in areas of technology in which Norway is especially well qualified".
Renergi notes that renewable energy sources comprise a wide range of technologies and opportunities, and it is not easy to recognize winning technologies in advance. However, this area also entails opportunities to satisfy long-term global objectives related to more environment-friendly energy production. Objectives set for the development of renewable energy in the EU and globally, and new framework conditions such as green certificates and new technologies, offer prospects for rapidly growing demand for goods and services. There are also opportunities for national and local economic growth by developing new products and services, and for flexibility owing to supplies from several energy carriers.
 |
Rich in resources
Norway is rich in renewable energy resources such as wind, solar power and bioenergy, as well as energy from the ocean such as wave energy, energy from salt gradients and tidal energy. The resources are vast, so the challenges are mainly commercial and technological when it comes to producing power at competitive prices.
Commercially, the need is to identify market niches and mechanisms that will make it possible to develop new technologies and introduce them to the market, and to compete at the international level on the basis of technological or market-related competence. Internationalization raises the need to rank priorities even more strictly than before to create a platform for research groups and competitive products. On the technological level, development associated with silicon as the basis for solar cells has, as we have seen, turned out to represent a successful marriage between Norwegian raw materials and competence. Norway may also enjoy advantages when it comes to adapting renewable energy technology to the harsh climate. For example, wind power technology has made considerable headway, but there is still room for new products and services related to the use of wind turbines in Arctic environments, offshore, etc.
Winds of change
In terms of percentage increase in yearly installed capacity, wind power is one of the fastest growing energy technologies worldwide. The potential for wind power in Norway is vast, in terms of energy generation and in profits for Norwegian companies benefiting from the development of wind power as subcontractors and wind turbine manufacturers.
After a relatively slow start, wind development in Norway now looks well on the way to fulfilling the potential for the industry - especially the potential of deep sea offshore wind turbine technology, combining wind technology with Norway's invaluable offshore know-how to enhance the development of offshore wind farms.
Industry observers see wind power development as an obvious way for Norway to fulfil its obligations under the Kyoto protocol. Norwegian wind power, further boosted by the growth of new markets for tradable green certificates, will clearly be a force to reckon with.
Norway is rich in renewable energy resources such as wind, solar power and bioenergy, as well as energy from the ocean such as wave energy, energy from salt gradients and tidal energy. The resources are vast, so the challenges are mainly commercial and technological when it comes to producing power at competitive prices.
Commercially, the need is to identify market niches and mechanisms that will make it possible to develop new technologies and introduce them to the market, and to compete at the international level on the basis of technological or market-related competence. Internationalization raises the need to rank priorities even more strictly than before to create a platform for research groups and competitive products. On the technological level, development associated with silicon as the basis for solar cells has, as we have seen, turned out to represent a successful marriage between Norwegian raw materials and competence. Norway may also enjoy advantages when it comes to adapting renewable energy technology to the harsh climate. For example, wind power technology has made considerable headway, but there is still room for new products and services related to the use of wind turbines in Arctic environments, offshore, etc.
Winds of change
In terms of percentage increase in yearly installed capacity, wind power is one of the fastest growing energy technologies worldwide. The potential for wind power in Norway is vast, in terms of energy generation and in profits for Norwegian companies benefiting from the development of wind power as subcontractors and wind turbine manufacturers.
After a relatively slow start, wind development in Norway now looks well on the way to fulfilling the potential for the industry - especially the potential of deep sea offshore wind turbine technology, combining wind technology with Norway's invaluable offshore know-how to enhance the development of offshore wind farms.
Industry observers see wind power development as an obvious way for Norway to fulfil its obligations under the Kyoto protocol. Norwegian wind power, further boosted by the growth of new markets for tradable green certificates, will clearly be a force to reckon with.
 | ||
According to SFFE, The amount of solar energy which reaches the earth each year corresponds to roughly 15,000 times the world's total energy consumption. Covering just 0.4 per cent of the country with solar cells could provide Norway with 120 TWh annually. (And that estimate is based on efficiency of only 15 per cent - a rate which is on the verge of doubling or even tripling.) In theory, it is therefore possible that solar cells could supply all of Norway's electricity consumption.
Silicon is the dominant material in solar cells. Norwegian industry and research institutions have vast experience in the production of silicon, and the Norwegian metals and materials group Elkem is one of the largest silicon producers in the world. Together with REC, it is only a slight exaggeration to suggest that Norwegian companies could eventually corner the world market in solar cell technology from raw material to finished product. By some accounts, Norway already has more solar installations per head of population than any other country!
Hydrogen technology
Among the most promising new technologies is the use of hydrogen as a flexible energy carrier and as a means of reducing undesirable emissions. Hydrogen technology will also make possible the utilization of local energy sources and improve the security of supply. With almost a century's experience in industrial hydrogen production, both from renewable sources and fossil fuels - and large natural gas resources which could be a main source for large-scale hydrogen production - Norway is well placed to exploit this exciting potential.
One of the most spectacular achievements in this field to date has been the creation of the world's first autonomous hydrogen society in the unlikely form of ten households on the tiny island of Utsira, off the southwestern tip of the Norwegian mainland. Here excess wind power is harnessed to produce hydrogen through an electrolyzer; the gas is stored in pressurized containers for later use in an engine and fuel cell, which generate electricity when the wind turbine slows or stops.
Hydropower and environment
Interestingly, energy-related CO2 emissions have not risen at the same rate as economic growth in Norway because such a large proportion of the demand for electricity is met by hydropower. Environmental issues associated with hydropower have tended to centre on local (and often national) resistance to the development of unspoilt natural habitats for electricity generation.
The Norwegian Water Resources and Energy Directorate (NVE), under the OED, is responsible for the safety of dams and for processing licence applications. The relevant legislation dates all the way back to 12th century provincial laws based on the concept of private rights of ownership, but including restrictions on the types of changes owners were permitted to make, particularly as they might affect fisheries. Naturally enough, Norwegian hydro technology and expertise are a thriving export industry.