Norjan valtion verkkoyhtiön pääjohtaja Auke Lontin puheenvuoro #NLC3 -seminaarissa Olos Polar Centerissä 26.11.2014.

1. Arctic power grid development
– issues and opportunities
Auke Lont, CEO Statnett
Northern Lights Corridor Seminar, 26th November 2014

2. The role of Statnett
The future is electric
2
Owner of high voltage grid
• Operator
• Maintenance
• Construction
System operator
• Maintain balance between
generation and consumption
• Security of supply

3. Responsible for a stable and
secure power supply
• Statnett operating about
11.000 km of high-voltage
power lines, 150 stations and
4 HVDC interconnections
• Responsible for maintaining
balance between supply and
demand at any time
• Security of supply
reliability: 99,96 %
• Max production: 26.167 MW
• ≈ 100 % renewable
The future is electric
A service provider with duty to connect
3

4. Statnett has been through huge
changes
Increased utilisation
The future is electric
Elhub, AMS (advanced meter- and
steering system) and fast changes in
technology
Increased efficiency
2009 2012 2013 2014 2015 2016 2017 2018
4
Increased capacity
Third energy package – Statnett have to
acquire the last parts of the central grid in
Norway
1990 2005
2025
Increased costs. Increased external
requests on focus on cost efficiency.
Safe and efficient operation

5. Our strategy 2014-2018
The future is electric
Safe and efficient operations
We will help developing next
generation power system
In 2018, Statnett will be a safe,
efficient and attractive company,
which owns and operate all central
grid in Norway

6. Massive investments in the power
sector 2010-2025
Statnett's ongoing projects Historic and expected investments in generation,
The future is electric
transmission, distribution
30
25
20
15
10
5
Our annual investments: 5.000-7.000 MNOK
160
150
140
130
120
110
100
90
80
70
60
0
TWh
x 1000 MNOK
Generation
Distribution
Transmission
Consumption(TWh)
6

7. More than tripled investment level
since 2010
The future is electric
7
p
mill.kr
p
Employees Investments

8. We are active in the Northern area
• Ofoten-Balsfjord
• Ongoing constructions
• Cost estimate 3200-3700 MNOK
• Balsfjord-Skaidi
• Investment decided September 2014
• Cost estimate 4000-6000 MNOK
• Concession expected in 2015
• Skaidi-Hammerfest
• Awaiting concession from the Government
• Realization depended on petroleum industry
• Other reinvestments and stations works
The future is electric
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9. The future is electric
Bardufoss
Kvandal
Ofoten
Construction starts
when the industry
sees need for new
capacity and increased
Balsfjord
Hammerfest
Alta
Skaidi
Step 1:
Started
construction
in 2014
Step 3:
security of supply
Step 2:
Development adapted
to the development of
the demand
Ofoten-Balsfjord-
Skaidi-(Hammerfest)
420 kV
9

10. Grid layout after Ofoten-Skaidi
The future is electric
10
Red = 420 kV
Green = 220 kV
Black = 132 kV
Blue = 110 kV.

11. Extensive plans and large potential for
increased consumption and production
The future is electric
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Eastern Finnmark
Oil- and mining industry.
Wind power
Further demand growth
depends on new oil field
discoveries
Specific plans for new wind
power, large potential for
further development
Grid operates close to
capacity limit both summer
and winter.
Satisfactory security of
supply when Finland line is
operational
Western Finnmark
Oil- and mining industry.
Wind power
Expect strained operating
conditions after 2014 due
to demand growth and
weak existing grid

12. Scenarios for consumption
development in Finnmark
800
700
600
500
400
300
200
100
The future is electric
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0
2014 2019 2024 2029 2034 2039 2044 2049
MW
Change in consumption in Finnmark
Electrification of all
new oil fields, all mines
and ports
Gas pipe line to
Hammerfest
Likely projects
N-1 with Balsfjord-
Skaidi
Certain (Goliat)
Current max consumption: 300-350 MW

13. Concept selection study in the
North
The future is electric
Red = 420 kV
Green = 220 kV
Black = 132 kV
Blue = 110 kV
13
• Unsure demand
side development
• A broad
involvement and
political anchoring
is necessary
• Analysis completes
in 2015

14. A process involving both internal
analysis and external interested parties
• To ensure that we find the right concept to meet future demand
and obtain acceptance, we will, in addition to our own analysis,
discuss the analysis externally
Technical Knowledge base assessments
The future is electric
Concept selection study
• Assessment of the needs
• Objectives & framework
• Feasibility study
• Analysis of alternatives
• Establish guidelines for the
project phase
• Condition of existing
stations and lines
• Feasibility of
upgrading and
rebuilding
• Assessment of new
corridors
• Knowledge based on
internal and external
analyses
• Datasets for several
models for current
system and expected
development
• Experience from
operations and markets

15. The concept selection
study (KVU north) will be
our compass for further
development
Identify
demand
The future is electric
Choice of
concept
Application
for
concession
Kick off
16th December
KVU finished
in 2015
Political
process
15

16. Strategic supplier development
Line
2007 2016
field/y
Station
field/y C
2007 2016
The future is electric
EPC
Increased outsourcing
300 km/y
20 km/y
Several contractors
Sima-Samnanger

17. Statnett arranges for local creation
of value
• We normally use 15-25 % of total costs on local
deliverances and services for our line and station projects.
• We give local business opportunities through our projects:
• SHA-training
• Information meetings
• Facilitating cooperation between suppliers
The future is electric
17
Ground works and
concrete
Office, storage,
accommodation
and food
Transport Forest cleaning
and road

18. Contractor arrangement August
2015
• Related to our Balsfjord-Skaidi project, we will have a
contractor arrangement in August next year
• Both large and local contractors and supplier can participate
The future is electric
From speed dating with large international and local suppliers in Tromsø 18th June 2013
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19. uncertain, but
The future is electric
The future is electric
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Statnett's power gird development in
the artic area:
• Ongoing project: Ofoten-Balsfjord,
3200-3700 MNOK
• Planned start 2015: Balsfjord-Skaidi,
4000-6000 MNOK, with local suppliers
• Concept selection study for further
development in the North in 2015