Calling for a revamp of energy value chains

The BCG report is commissioned by the Norwegian Confederation of Business (NHO) and is an updated quantitative assessment of Norway’s competitiveness in the green transition and recommendations on future action.

You can download the report in English here.

Compared to other countries, the report concludes Norway moves to slowly in developing the green value chains. From a 4^th place in 2021, Norway is now ranked as number seven.

Yet aother NHO report is describing the status for AI in Norway. This states that Norway lacks both the insight into how AI can solve business challenges, and the competence to use the tools. You can read an English summary of this report here.

Immediate increase in hydropower and wind

- Compared to Norway, there are particularly two dimensions where other contries do better in the green shift: They have stronger policy frameworks and they are better at attracting green investments, says Børge Kristoffersen, managing director and senior partner at BCG in a comment to the ranking.

The report calls for an immediate increased focus on onshore wind, hydropower, more ambitious targets for offshore wind projects and continues work with CCS. For all these industries, AI is identified as an important tool to succeed.

The conclusion is supported in the yearly report from State owned Statnett, who is reponsible for owning, operating and constructing the stem power grid in Norway.  

-  We are expecting a significant increase in power demands. To be able to deliver the sufficient energy needed for a greener world, we need to increase the renewable production, says CEO in Statnett, Hilde Tonne.

CEO in the Bergen based energy company Eviny. Ragnhild Janbu Fresvik, supports focusing on hydropower an onshore windpower.

- As of today, no other technologies can compete with hydropower and onshore wind when it comes to energy efficiency. We need to have our eyes on future technology, but we also need to  close the energy gap i the coming years. To succed in that, further development of hydropower facilities and onshore windmills are key, she stated in a comment to the report. 

Solely investing in renewables

Same time: Norway’s key energy producer Statkraft opened 2024 by launching its largest investment program for renewables for decades, planning to invest up to EUR six billion in upgrading hydro power and building new onshore wind power facilities.

Statkraft also generates heat and power from biomass and natural gas. Gas-fired power generation substitutes power generation based on coal in Europe, which leads to lower CO₂ emissions from the power sector. However, going forward the company is only investing in renewables.

- These investments will be a major contribution to the energy system in Norway and to the green transition. The future power system in Norway and Europe will need both more power and increased flexibility. Phasing in more intermittent power such as wind and solar through increased capacity and flexibility in hydropower is key to succeed with the transition to a net zero future, said Statkraft’s CEO Christian Rynning-Tønnesen, when releasing the plans.
 

Hydropower still the backbone

Hydropower is the backbone of Norwegian power production, and most of the investments will be spent on upgrades and transformations of Norwegian hydroelectric power plants (up to EUR 3 billion), while as much as EUR 2 billon can be spent rehabilitation of dams and modernization of older power plants.

These investments are estimated to have a 20 percent increase in installed capacity at hydroelectric power plants.  

Increased hydropower is not sufficient to supply the future’s increased power needs. The gap is mainly expected to be covered by the production of wind power, mostly offshore, but also production from onshore windmills.

  
Increased focus on wind power  

Statkraft’s investment program plans will more than double the company’s onshore wind power production, to 2,500 GWh or more. This will be done both through repowering of existing wind farms and by new developments.

- We have fantastic wind resources in Norway. Onshore wind is the technology that can provide us with new power in the fastest and cheapest way before 2030. We should therefore develop the best wind projects so that we can contribute to both industrial development and emission cuts, says ays Birgitte Ringstad Vartdal, Statkraft’s Executive Vice President for the Nordic region.

Statkraft is at this moment looking at four possible wind power projects in Finnmark, Northern Norway. 

Smøla Wind Farm with 68 mills is one of Statkraft’s onshore wind facilities. The maximum production capacity is 150 MW and is’s generates 450 GWh in average per year. Photo: Statkraft