• Each day – the world population increases with 220.000 inhabitants. This corresponds nearly to the population of Bergen, the second largest city in Norway. Each day!
• Each day – the world middle class grows bigger. For example in 2015, China could have 600 million middle class citizens. This is nearly a threefold increase from today.
Each new citizen of the world will consume more energy. Each new member in the middle class will consume more energy. IEA has therefore projected an increase of 45 percent in primary energy demand until 2030. If we do nothing – most of the primary energy demand will come from fossil fuel.
• On current trends, the average global temperature will increase by as much as 6 degrees in the long term.
• We therefore need a major decarbonisation of the world energy sources and an energy revolution.
• How can we tackle these challenges? 1) It must be more expensive to emit carbon dioxide and other greenhouse gases. 2) We need huge investments in environmental friendly energy production. 3) We need research, development and testing of alternative energy to make renewables more competitive. The costs must come down!
• I want Norway to have a leading role in this.
• Norway is in a fortunate situation when it comes to renewable energy. We are the world’s 6th largest producer of hydropower and about 60 per cent of the total Norwegian final energy consumption is based on renewable energy . The EU-27 average is around 9 percent.
Electricity certificate system
• In June 2008, the Norwegian government made an agreement of understanding with Sweden in order to investigate the possibilities to establish a common electricity certificate system. Yesterday, we reached a milestone in our work. The Swedish Minister for Enterprise and Energy and Deputy Prime Minister Maud Olufsson and I signed a new agreement of understanding regarding the central principles of the certificate system.
• The ambition is to establish a common electricity certificate system from 1st January 2012. Our ambitions are to take the equally ambitious commitments as Sweden, from the commencement of the common certificate system.
• Sweden has earlier established a new target for the electricity certificate system. The certificate system will contribute to 25 TWh in 2020, compared to the situation in 2002. The Swedish electricity certificate system does not, with a few exceptions, discriminate between technologies, and a common certificate support scheme should be in line with this.
• The Government is a keen proponent of CCS. We recognize that CCS has the potential to significantly reduce greenhouse gas emissions.
• Following this, the Government has set out ambitious goals for CCS, and has initiated several CCS-projects already.
• Already in 2006, the State and StatoilHydro agreed on developing CCS technology at the Mongstad facility in two stages: First, a CO2 capture technology center (TCM), followed by the construction of a full scale carbon capture plant.
• With the technology center, the intention is to develop and test CCS technology, and with that reduce on costs and risks related to large-scale carbon capture.
• The center is now under construction, of which planned facility start-up is in 2011.
• With regards to the full scale carbon capture plant at Mongstad, the planning is in full progress.
Norwegian policies for offshore wind
• In June this year, I had the honour of presenting a new act and a national strategy on offshore renewable energy. Through these, the Government has established the framework for a new green industry.
• The proposed act is based on the public administration and control of the energy resources offshore. It creates a holistic framework to ensure that energy infrastructure is planned, constructed and operated with due concern for energy supply, environment, security, fisheries, sea transport and other interests.
• The law proposal implies that renewable energy production may be established offshore after the Government has opened up appointed areas for applications. The process of identifying sea areas suitable for future development of offshore wind power is starting up these days.
• The national strategy discusses the challenges of a future large-scale development of offshore renewable energy production, and outlines how the Ministry will follow up key issues such as technology development and demonstration, area planning and grid infrastructure.
• The proposed act and appurtenant strategy are important first steps in creating a regulatory framework for offshore wind power in Norway, and point out the direction for the long-term efforts necessary to reach our ambitious goals. In 2012 we will present a revised and further developed strategy to Stortinget.
R&D in Norway
• One of the challenges discussed in the strategy is research and technology development.
• No large offshore wind farms today are operating in depths greater than 30 meters . More robust turbines must be developed and demonstrated, as they need to be adapted for the offshore environment. On a general level, the cost of offshore wind energy must be reduced in order to be truly competitive in the future.
• This means that a continuous focus on R&D and deployment of offshore wind energy technology is needed. I think Norway has the potential for becoming a major player within offshore wind, because of our advantageous resource situation, and because of the unique and very competent research and knowledge base.
• Hywind is an illustration of this.
• Support for research, development and demonstration of offshore wind energy technologies is high on the government’s agenda.
• Hywind is build by a subsidiary of StatoilHydro and illustrates how oil companies can use their world class petroleum technology in developing renewable technology. StatoilHydro has a long history for finding innovative solutions on complex problems in the exploration of fossil fuels on the Norwegian Continental Shelf. This time StatoilHydro has demonstrated their ability for finding innovative solutions to enable offshore exploration of wind power.
• I am also very pleased with the fact that StatoilHydro recently added the words “other forms of energy” to its mission statement. It is my understanding that this is done in order to make the company’s efforts in wind and other forms of renewable energy more visible. To me, this shows that the StatoilHydro is willing to integrate this in its commercial business.
• Hywind has had a total cost of around 400 million kroner, of which 59 million kroner was awarded in support from Enova in October 2007. It will have an installed capacity of 3 MW, and the estimated production is 9 GWh/year.
• Hywind will give unique insights into how to further develop and perfection the technology of floating wind turbines. Therefore it has received international interest. The Hywind project is an important step in order to enable the wind industry to capture wind energy within deep water environments.
• Before I end my speech, I would like to congratulate StatoilHydro with the world’s first full-scale floating wind turbine. Thank you.