Key developments and challengesin the Nordic region- Eurelectric Members’ DayOluf UlsethCEO, Energy NorwayBrussels, February 6, 2012

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Electricity Generation in Nordic Countries 2010

Hydro power

Nuclear powerFossil fuels

Wind power

17 TWh

145 TWh

77 TWh

37 TWh

123 TWh

Total399 TWh

Source: ENTSO-E

Oher RES

Non-identifiable

25 %

75 %

28 %

40 %17 %

14 %

53 %

19 %

18 %

7 %3 %

1 %

95 %

4 %1 %

46 %39 %

5 %

8 %2 %

72 %21 %

7 %

New generation – more transmissionInvestments in new emission free generation

Swedish-Norwegian joint certificate market established in 2012New RES targets in Denmark 2011Substantial nuclear capacity under way in Finland

Integrated marketsNordic system price - 12 price zonesSeveral interconnection projects under construction (NO-DK, NO-SW, FI-ES, SW-LI)Projected power surplus in 2020, increases need for more transmission capacity with rest of EuropeNordic TSO initiative on common balancing management

Active consumers using new technologySmart meters introduced in Sweden and Finland, under way in Norway Nordic power retail market in progress -> 2015?

Long term Nordic strategy for reduction of CO2-emissions• Electricity and district heating industries in the Nordic countries

fully committed to EU:s emission targets by 2020Carbon neutral power generation and heat production before 2050Three pillars: 1) Energy Efficiency, 2) low carbon technologies and 3)

better connected European grid• ETS + binding national targets for the non-ETS sector the main

tools Climate targets for 2030 and 2040 in line with the 2050 target –

important to decide on the ambition NOW!

European Agenda for 2012• Adopt the Energy Efficiency Directive• Adopt council conclusions on energy, transportation, climate and resources

Roadmaps 2050 with a 2030 and 2040 GHG target to guide investments to decarbonize the power sector before 2050

• Adopt energy tax directive based on CO2-emissions and targeted for non-ETS sector

• Adopt Horizon 2020 programme 5,8 bn euro for energy R&D

• Adopt conclusions on energy, transportation, climate and resources Roadmaps 2050

• Strengthen the functioning of the internal electricity market• Develop a coherent view on the electricity market

analyze the effects of different RES, energy efficiency, security of supply etc. targets and national interests on the electricity market

• Ensure a framework for energy use of biomass

Key messagesSubstantial investments in new emission free generation, leading to a power surplus in 2020, underlining the need for more transmission

The Nordic strategy to meeting climate targets build on a European ETS and binding targets in non-ETS sectors

The European agenda for 2012 is all about adopting key legislative proposals and roadmaps, while strengthening the internal electricity market