ERFARINGER MED VINDKRAFT
OG VEIEN VIDERE FOR
OFFSHORE VIND
Eivind Torblaa, Head of Asset Management - Wind
Det Norske Videnskaps-Akademi
3 oktober 2014
Agenda

Litt om Statkraft

Vind i Statkraft
- Tilbakeblikk
- Hva skjer for øyeblikket
- Hva gjør vi fremover med fokus på offshore vind
2
European leader within renewable energy

Environment-friendly power generation: 56 TWh
-
*Norway: 81%
*Other Nordic countries: 10%
Other European countries: 4%
Rest of the world: 5%

Gross operating revenues 2013: NOK 49 564 mill

3,600 employees in more than 20 countries

Main power supplier to Norwegian industry

100% owned by the Norwegian state
3
* Including district heating
Statkraft’s production
Norway
12 518 MW
*
Installed capacity
97%
17 600 MW
renewable
energy
Power production
3 600
56 TWh
employees
UK
273 MW
Germany
2 692 MW
Nepal 23 MW
Laos 100 MW
Albania
(project)
Panama
(project)
Peru
163 MW
(+ project)
STATKRAFT
Sweden
1 315 MW
Chile
94 MW
Turkey
20 MW
(+ projects)
Brazil
86 MW
SN POWER/
AGUA IMARA
* 2013 figures. Includes: - Statkraft/SN Power’s share of installed capacity
India
91 MW
Zambia
6 MW
Philippines
149 MW
Strategic directions
European Flexible Generation
Market Operations
International Hydropower
Wind Power
District Heating
Global development of wind power


More than 300 GW of wind power
installed globally.
Global wind power 2010-2013
350 000
The annual growth in wind power in
Europe the last years has been
between 10-13 GW.
+13%
300 000
+21%
250 000
+22%
MW
200 000
150 000
100 000
50 000
2 010
Europa
2 011
USA
Kina
Kilde: IHS Emerging Energy Research
6
2 012
Resten av verden
2 013
Make Consulting’s forecast of global onshore wind
deployment…
7
Make Consulting’s forecast of global offshore wind deployment…
8
The wind power markets
Onshore windpower 2013
Offshore windpower 2013
[Σ= 297GW]
[Σ= 7.7GW]
241 215
4 418
China
41 553
United Kingdom
497
United States
4 723
76 560
6 425
Germany
Spain
7 694
Germany
580
China
India
8 149
Italy
8 744
20 269
61 789
22 794
33 925
Belgium
3 870
940
Netherlands
France
Sweden
Canada
Japan
United Kingdom
Finland
Portugal
1 267
Ireland
Sweden
Norway
Other
Portugal
Kilde: IHS Emerging Energy Research
9
Denmark
Wind Power in The European energy-mix
Construction of new wind power in
Europe 2000-2012
Production of electricty in Europe 2012
2%
120 000
6%
100 000
4%
Termisk*
Thermal
MW
80 000
16 %
60 000
*
Atomkraft
Nuclear
47 %
Vannkraft**
Hydro **
Vindkraft***
Wind ***
40 000
Bio
Bio
Solar
Sol****
****
Geothermal
Geotermisk
20 000
25 %
-
Onshore
10
*
Coal and Gas
** incl pumped-storage and small scale hydro
*** onshore and offshore
**** PV and CSP
Offshore
Source: IHS Emerging Energy
Research
Statkraft’s wind power portfolio
Norway
MW
Smøla
150 MW
100%
Hitra
55 MW
100%
Kjøllefjord
39 MW
100%
2000 MW
-
Under dev. Norway
Sweden
MW
Statkraft share
EM (Södra)
9,2 MW
90%
Tollapabjär (Södra)
2,3 MW
90%
Stamåsen (SCA)
60 MW
60%
Mörttjärnberget (SCA)
85 MW
60%
270 MW
60%
99 MW
60%
1300 MW
-
Björkhöjden (SCA)
Ögonfägnaden (SCA)
Under dev. Sweden
UK
Kjøllefjord
Statkraft share
MW
Statkraft share
Hitra
Smøla
Stamåsen
Mörttjärnberget
Björkhöyden /
Ögonfagnaden
Baillie
Alltwalis
23 MW
51%
Baillie
53 MW
51%
Berry Burn
67 MW
51%
Under dev. Onshore
100 MW
-
Dudgeon (WO)*
560 MW
30%
Sheringham Shoal (WO)*
11
Dogger Bank (WO)
317 MW
50%
9632 MW
25%
Berry Burn
Em
Tollarpabjär
Dogger Bank
Alltwalis
Dudgeon
Sheringham Shoal
In operation
Under construction
Under development
Technology- and cost development
Increased capacity of the turbines
and bigger turbines increases
production …
… contributes to lower cost over
time
Development of cost of energy in
Onshore wind
Capacity
factor
€/MWh
160
140
120
100
80
60
40
20
0
1990
12
Source: Bloomberg New Energy
Finance
2000
2012
Good wind conditions are crucial for windpower
Stamåsen Wind farm
A= 10029
m²
D= 113
m
13
h= 115 m
H= 171,5
m
Onshore wind power in Norway, Sweden and UK

Developing onshore wind power
through SAE Vind and Fosen Vind in
Norway, and in cooperation with SCA
and Södra in Sweden

Norway
- Hitra, Kjøllefjord and Smøla
(installed capacity: 244 MW)

Sweden
- Em, Stamåsen, Tollarpabjär and Mörttjärnberget (installed capacity 171 MW)

UK
- Alltwalis, Baillie and Berry Burn
(installed capacity 143 MW)
14
Operational Asset Norway
Smøla wind farm
-
Capacity:
Production:
Statkraft’s share:
In operation:
150,4 MW
356 GWh
100 %
2002/2005
Hitra wind farm:
-
Capacity:
Production:
Statkraft’s share:
In operation:
55,2 MW
138 GWh
100 %
2004
Kjøllefjord wind farm
-
Vindkraft i Statkraft
Capacity:
Production:
Statkraft’s share:
In operation:
39,1 MW
119 GWh
100 %
2006
Operational Asset Sweden
Em wind farm
Capacity:
Production:
Statkraft’s share
Partner (9,9% %):
In operation:
-
-
9,2 MW
22 GWh
90,1 %
Södra
2011
Stamåsen wind farm
-
-
Capacity/production:
Statkraft’s share:
Partner (40 %):
In operation:
Mörttjärnberget wind farm
Capacity/production:
Investment (100%):
Statkraft’s share:
Partner (40 %):
In operation:
Vindkraft i Statkraft
60 MW/200GWh
60 %
SCA
2013
85 MW/280 GWh
1650 MSEK
60 %
SCA
Q4 2013
Operational Asset Sweden
Tollarpabjär
-
-
17
Capacity:
Production:
Statkraft’s share
Partner (9,9% %):
In operation:
2,3 MW
6 GWh
90,1 %
Södra
2013
Operational Asset UK
Alltwalis wind farm
Capacity:
Production:
Statkraft’s share:
In operation:
-
23 MW
64 GWh
51 %
2010
Baillie wind farm
-
Capacity/production:
Investment (100%):
Statkraft’s share:
Partner (20 %):
In operation:
52.5MW/170 GWh
60 MGBP
51 %
Landowner
2013
Berry Burn wind farm
-
Vindkraft i Statkraft
Capacity/production:
Statkraft’s share:
In operation:
66.7MW/184 GWh
51 %
Q1 2014
Projects under construction
19
Björkhöyden wind farm
Capacity/production:
Investment (100%):
Statkraft’s share:
Partner (40 %):
In operation:
270 MW/800 GWh
3800 MNOK
60 %
SCA
2014/2015
Ögonfägnaden wind farm
Capacity/production:
Investment (100%):
Statkraft’s share:
Partner (40 %):
In operation:
99 MW/290 GWh
1400 MNOK
60 %
SCA
2014
Konsesjoner i Fosen/Snillfjord/Hitra/Frøyaregionen

SAE Vind
- Storheia - 220 MW *)
- Kvenndalsfjellet - 120 MW *)
- Geitfjellet – 170 MW **)
- Svarthammaren – 150 MW **)
- Hitra 2 - 75 MW **)

Zephyr
- Remmafjellet – 130 MW **)

Sarepta
- Sørmarkfjellet -150 MW
- Roan - 280 MW *)
- Harbaksfjellet - 90 MW
- Frøya – 60 MW **)

Statkraft
- Hitra – 55 MW (eksisterende anlegg),
kan være aktuelt for fornying **)
20
SAE Vind
Andre aktører
*) Prosjekter som inngår i Fosen Vind samarbeidet, samlet ca. 620 MW
**) Prosjekter aktuelle for innmating i Snillfjord, samlet ca. 640 MW
Testing new turbine technology in Sweden
21

Due to long transport on narrow
roads the supplier had to come up
with an alternative solutions on
towers

The solution was shell towers –
transported in «flat-packs» and
bolted together

This is also the first Statkraft
windfarms with direct drive turbines
Shell Tower
22
30 Aug 2012
23
24
Lead operator in offshore wind power in UK

Owner* and operator of Sheringham
Shoal offshore wind farm (317 MW)

Offshore wind farm Dudgeon**
is under construction (402 MW)

Several 1200 MW-projects on
Doggerbank*** under development
25
* In partnership with Statoil
** In partnership with Statoil and Masdar
** With partners through Forewind Ltd
Statkrafts offshore wind strategy
Next project:
operator/
industrial role
Dudgeon:
Integrated partner
(30%)
Sheringham Shoal:
Partner during construction,
operator in operational phase
(50%)
26
Dogger
Bank:
Operator on
one of four
projects
MAIN FOCUS IN OFFSHORE WIND POWER
27

Build capabilities, and institutionalise
learning from the Sheringham Shoal
project as a basis for taking a leading role
in future offshore wind power projects

Develop Dudgeon together with Statoil

Find other projects to help build capability

Develop the Dogger Bank projects up to
consent
THE SHERINGHAM SHOAL OFFSHORE WIND FARM
Key facts:

50/50 JV Statoil and Statkraft

Installed capacity: 317 MW

Annual production: 1,1 TWh

Capex: ~10 bill. NOK (1,2 bill. €)

In operation
Responsibilities:
29

Operator in construction: Statoil

O&M operator: Statkraft
Knowledge transfer

Several staff who has worked at
Smøla for 10 years has been used
in building up the operation at
Sheringham Shoal

This is to secure valuable
knowledge of wind turbines and
operation of wind parks are being
transferred into the offshore wind
sector.

Picture shows Arild Soleim who has
been power plant manager at both
Smøla and Sheringham Shoal.
30
Dudgeon
Facts
Allocation round
UK R2
Area
55 km2
Waterdepth
18-27 m
Installed capacity
402 MW
Offshore cable
42 km
Onshore cable
47 km
Turbine
Foundations
31
6.0 MW Siemens Direct drive
XL monopiles
Dudgeon in numbers

67 6MW DD turbines w/ 154m dia.

90 km export cable

47 land owners

Monopiles >1000 tonn

>90 000 tonn steel

500 major lifts

30 000 lifts offshore (large potential
for optimisation/reduction)

More than 5000 vessel days offshore
32
Siemens new 6 MW DD turbine
PROJECT DEVELOPMENT ON DOGGER BANK



33
Project development in Forewind Ltd
-
Jointly owned company between Scottish & Southern Energy, RWE Innogy,
Statoil and Statkraft
-
Statkraft holds a 25% share in Forewind
Key figures:
-
Distance to shore: 125-290 km
-
Water depth: 18-63 m
-
Extends over nearly 9,000 km²
Status
-
Secured grid connection for 6 x 1000 MW
-
Two offshore meteorological masts installed on innovative suction buckets in
2013
-
First consent application for 2 x 1200MW was submitted August 2013
-
Next consent application for 2 x 1200MW was submitted March 2014
-
First consents expected Q1 2015, investment decisions would follow as
appropriate
Haugøya test turbine at Smøla

Final consent received July 2014.

Preliminary milestones:
-
34
FID in Q1 2015.
Site completed winter 2015/16
WTG installation in 2016.
Operational in 2016.

Turbine power:
6 - 8 MW

Hub height:
100 - 130 m

Rotor diameter:
140 - 180 m

Yearly production:
20 - 25 GWh
Why Haugøya at Smøla?

Onshore testing has lower cost and
risk compared to offshore testing

Smøla has very good wind conditions
and is well suited as test site

Haugøya can easily be facilitated for
barge transport for turbine, tower and
required equipment

Statkraft can utilize its existing
operational organisation at Smøla

There exist attractive support regimes
for test facilities in Norway
35
Levelized Cost of Energy
CHALLENGES FOR OFFSHORE WIND POWER
Levelized Cost of Energy
Statkraft believes that wind power will be
an attractive and profitable industry for
players that develop strong capabilities
across the value chain

Cost of energy for different technologies
Cost of
Energy
Decommissioning
The industry is still immature, with
technical risk and supply chain
bottlenecks
CO₂ costs
Fuel costs
Variable costs
Fixed costs
CapEx



36
New projects on deeper
waters,
and
COAL
CCGT
Nuclear
Wind on
increased distance from shore
Wind off
The cost of offshore wind power is high
compared to other power generation
technologies
Sol PV
Coal CCS
De
CO
Fu
Va
Fix
Ca
COAL
CCGT
Nuclear
Wind on
Wind off
Sol PV
Coal CCS
We expect cost reductions through more
efficient technology and gradual maturing
of the industry
Source: Statkraft
LCoE scenario 2014-2035
LCoE - UK
Coal, UK
Onshore wind, UK
Offshore wind, UK base CAPEX
2014
37
2020
2025
2030
2035
Cost reductions are key – R&D plays a vital role
38
THANK YOU
www.statkraft.com