E-CO Energi's vision is to be to be a leading producer of hydropower COMPETENT AND CREATIVE

Transcription

1 E-CO Energi's vision is to be to be a leading producer of hydropower COMPETENT AND CREATIVE 1

2 Owned by the City of Oslo Norway s second largest power producer with a mean annual production of 10 TWh. E-CO owns and operates more than 60 power plants throughout southern Norway E-CO E-CO Energi owns E-CO Vannkraft and Oslo Lysverker 100 % Oppland / Hedmark E-CO owns Oppland Energi 61,4 %, Vinstra Kraftselskap 66,7 % and Opplandskraft 40 % E-CO HOVEDKONTOR Norsk Grønnkraft E-CO owns 21 % Uvdal I og II E-CO owns 10% Embretsfossverkene DA E-CO owns 50% 29. mar

3 Group structure E-CO ENERGI CITY OF OSLO 100% Operating revenue: MNOK E-CO VANNKRAFT E-CO ENERGI 100 % Employees: 160 OSLO LYSVERKER E-CO 100 % VINSTRA KRAFTSELSKAP E-CO 66,7 % OPPLAND ENERGI E-CO 61,4 % EMBRETSFOSS- KRAFTVERKENE E-CO 50 % OPPLANDSKRAFT OSLO LYSVERKER 25 % OPPLAND ENERGI 25 % NORSK GRØNNKRAFT E-CO 21 % ØVRE OTTA OPPLANDSKRAFT 79 %

4 Key figures (Figures in NOK million) Operating revenue Operating profit Ordinary result before taxes Profit for the year Total assets Total equity Return on equity* 19 % 26 % 18 % Return on total assets** 18 % 19 % 17 % Power production (GWh) * Net profit/average equity ** Ordinary profit before taxes + financial expenses/average total assets

5 E-CO in the Nordic power-chain Production Nord Pool/ Power exchange Network/grid Retail market/ Consumer E-CO Energi s power production is sold on the wholesale market No network business No retail business

6 Hydro power E-CO Production 6

7 Main area for our facilities 7

8 Our responsibility in Hallingdal, Aurland and Solbergfoss 19 hydro power stations 46 turbines About 230 km watertunnels MW installed capacity 8

9 E-CO -strategy: Concentration on power and competence Increase values through consolidation, enhancing efficiency and tidying up watercourse ownership. The industrial basis for added value is to be found in: The wholesale market: A higher level of competence and insight into market conditions reduce risk and increase the earnings potential Watercourse ownership: Companies with tidy ownership and operating relations in a watercourse have a greater potential for creating added values Competence: A high level of competence in the Group is a necessary prerequisite for generating strong financial results.

10 E-CO Energi - primary goals and strategy PRIMARY GOALS STRATEGY Maximise shareholder values Transferability Return Playing an active role in restructuring of the industry Development in industrial values Long-term added value Better framework conditions Minimise total tax Development of environmentally proper solutions Network building 10

11 Target: GWh -> 2015 Upgrading existing power plants New projects Small scale hydro

12 Tolga 1000 GWh by 2015 Storruste Rosten Åsåren Øyom Mork Aurland 1/Låvi Leinafoss Lovisberget Brekkefoss Vestredalstjern Bergsjø Mjåvann/Rødungen Hemsil 2/2A Hol 3/Usteåni

13 New power projects Project New power (GWh) New capacity (MW) E-CO s share (%) E-CO s share (GWh) Investments (NOKM) Status Power devel. projects Aurland Power devel. projects Hol % Under development % Under development Hol I % Commissioned Hemsil III % Under development Mork % Expected construction Embretsfoss % Under construction Rendalen % Under construction Nedre Otta % Reported to authorities 2009 Rosten % License application submitted 2009 Øvre Vinstra % 6 Upgrading License application submitted 2009 Norsk Grønnkraft several projects appr. 400 appr % 90 New power plants Different stages Other projects appr. 900 appr % 360 Several categories Under development Total appr appr appr

14 Brief about energy in Norway Major non-opec source of oil. Norway is a major world supplier of oil and natural gas, especially to the European Union. The third-largest net oil exporter in the world. The second-largest supplier of natural gas to continental Europe. Has little coal production or consumption. 14

15 GWh Norwegian Net Exhange Imports (+), Exports (-) TWh TWh TWh TWh TWh TWh -600 Denmark Finland Sweden Holland (from week 17, 2008) 15

16 Norwegian hydro production (Normal year = average 70-99) 2009/ TWh 2010/ TWh Approved, not yet built 3,5 TWh Pending approval 6,3 TWh Plans 3,9 TWh However, a large uncertainty of feasibility, due to factors like grid connection, environmental impacts, licensing bottlenecks etc. Total theoretical new hydro potential is about 80 TWh Out of this, 46 TWh is protected 16

17 Hydropower in E-CO and environmental impact 17

18 Environmental impact E-CO s power production is based on renewable sources, virtually free of emissions of greenhouse gasses Emissions from one of E-CO s power plants are typically about 0.15 kg CO 2 /MWh (construction included) Emissions from an average European (EU-15) power plant is 526 kg CO 2 /MWh 18

19 Solution to CO 2 problems? Integrated European markets Substituting continental thermal generation Integrating more intermittent renewable power generation Sufficient storage and capacity Electrifying transport 19

20 Green certificates Common Norwegian/Swedish agreement to build 26,4 TWh new power within 2020 through green certificates Consumers of electric power are committed to buy certificates Both new projects and upgrading of existing power plants which brings more energy to the market are included Start up 1. January Equally ambitious commitment, ie. 13,2 TWh in each country - Technology Neutrality - Implementation of strategic transmission lines

21 Norway as a battery for Europe Wind power can be balanced with Norwegian hydro power or local gas power

22 Market challenge Large degree of wind power will result in price fluctuations ZEA JUT NO (South) Amount of hours with 0-price Number of Zero Prices SE (South) Reference Wind FIN DE NL Kilde: Econ Pöyry analyse 22

23 Hydro power is a part of the climate solution Thank you for your attention! BE A SUPPORTER OF HYDRO POWER