A presentation given in Stockholm, March 20th 2014, by Ola Alterå, at Global Challenge's and E.ON's seminar "A Nordic Energiewende?"

1. NAG
Nordic Energy ways in Europe
– Clean, Competitive and Connected
Ola Alterå
Stockholm
20 mars 2014

2. NAG
Nordic Action Group
on Climate and Energy
Hördur Arnarson CEO, Landsvirkjun, Iceland
Carl Bennet Chairman, Getinge, Sweden
Ingrid Bonde CFO, deputy CEO Vattenfall , Sweden
Anders Eldrup Former CEO DONG Energy, Chairman Copenhagen
Cleantech, Denmark
Henrik Ehrnrooth Chairman, Caverio, Pöyry och YIT, Finland
Ulrik Federspiel Executive Vice President Haldor Topsoe A/S,
Denmark
Anders Olsson Deputy CEO E.ON Norden, Sweden

3. NAG
Nordic Energy Ways in Europe
- Clean, Competitive and Connected

4. NAG
Background and assumptions
• The Nordic countries are comparably far in
transition to sustainable energy
• Nordic governments aim at Zero emission targets
for 2050 (IEA interpretation)
• Will necessitate very large investments in
renewables, transmission, energy efficiency and
transport systems
• A proactive, bottom-up approach from Nordic
Business can lead to competitive strength for the
Nordic region

5. NAG
IEA first regional Energy Technology
Perspectives report – together with
Nordic Energy Research
Yes, we can:
“A near complete
decarbonisation of the Nordic
energy system is possible – but
very challenging.”

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IEA first regional Energy Technology
Perspectives report – together with
Nordic Energy Research
It´s easier together:
“Strong co-operation among
Nordic countries can reduce the
cost of reaching the scenarios.
Co-ordination of policies, RD&D and
infrastructure development could accelerate
technology development and penetration
towards a low-carbon energy system.”

7. NAG
Main message from NAG
• Governments and industry have a story to tell in
the EU
– especially the trans boundary electricity market
• We can do more - and it is more efficient if
cooperating closer
• The transition will need a gradually higher price
on CO2
• Nordic Green Industrial Clusters can develop
further and grow

8. NAG
1. High Efficiency Economy
• Transport sector
• Housing sector
• Industry and Service Sector
Recommendations
• Take lead in early market for electric cars.
• Pioneering region in electrification of roads.
• Nordic building standards, gradually strengthened towards zero.
• Use the EU compulsory energy declaration as a basis for targets based on
Nordic best practice.
• Nordic voluntary scheme for energy improvements for
industries, including tax incentives and sharing of know-how.

9. NAG
2 Nordic Battery and Renewable
Energy Hub
Potential of substantial net export of renewable energy
(electricity, maybe biofuels) as well as a balancing
region on the European electricity markets
Recommendations
• Increase integration across Nordic renewable support schemes
• Utilize co-operation mechanism within the EU RES directive
• Technology specific support only for non mature technologies
• New transmission investments within Nordic counties and to continental
Europe

10. NAG
Nordic Electricity Market

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Exporting electricity?
• Assume export of 50-100 TWh of renewable electricity (IEA)
• Yearly export earnings of € 5-10 billion (long term).
• Reducing European CO2 emissions by 40-90 million tonnes
(replacing coal condensing power)
• Reduced cost for European climate policy
• Increase potential for wind and solar in northern Europe.
• Secure cost benefit for Nordic business relative to continental
Europe
• Industrial development, improved investment
climate, innovation, jobs creation, stronger competitiveness
etc. in the Nordic countries.
Export electricityprice the lowest assumption among IEA main scenarios, USD 136/MWh

12. NAG
3 Nordpool 3.0
The worlds first and most successful multinational
power market. Can develop further with flexible
supply, export of surplus and flexible demand in real
time.
Recommendations
• Design the Nordic market to retain and develop flexibility.
• Promote Nordic solutions for Europen market design.
• Strengthen R&D efforts to adapt Nordpool to the emerging energy
scene.

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Financing
• Bring together a large number of national and
Nordic entities under a “Nordic Energy
Financing Center”, not to replace present
institutions but to take a leading role in
coordinating the present institutional set-up.

14. NAG
Nordic Energy Green Clusters with
potential
• Wind power - focus on cold climate, off shore and
forested areas.
• Climate efficient biofuels from indigenous sources.
• Electrification of transport including vehicles, charging
infrastructure and electrification of roads.
• Combined operation of heat and electric power
systems, including efficient use of heat pumps.
• Smart electrical grids combining IT with power.
• Solar power solutions.

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Is there a Nordic Way?
• Systems approach
• Market based solutions and instruments
• Cost efficient measures
• Transparent markets
• Not subsidizing fossil energy
• Diversity...!

16. NAG
Impressing Energiewende
Solar power Germany 2012: 28 Twh
-
5.0
10.0
15.0
20.0
25.0
30.0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
• 5% av total elproduktion
Thank you Germany.
Generous subsidies
have reduced prices
drastically: today
25% of the price 5
years ago. Getting
competitive without
subsidies on some
markets....

17. NAG
Renewable support systems
German Feed In Tariffs
• Control of unit price
• Uncertainty about volume
• Differentiated by technology
• Driver for new technologies
• Participation of small market
actors -> public acceptance
• Effective in development of
technologies and industries
Sw-No Certificates
• Control of volume
• Uncertainty about unit price
• General for renewables
• Only mature technologies
competitive
• Cost efficient to reach target
• First cross boarder system?

18. NAG
Same, same - but different
• Similar volume of new renewable electricity
production per capita
• Similar present pace in increased production
per capita
• Different leading technologies
• Direct, short term costs per kWh for Swedish
electricity consumers about 1/10 of German
consumers

19. NAG
THANK YOU!
Ola Alterå
CEO Sustainable Innovation
Senior Adviser to Global Utmaning