The Energy Regulation and Markets Review - Stikeman Elliott

Norway
will cause rising certificate prices until prices reach a level where the energy market will
attract new investors.
ii Energy efficiency and conservation
Both the NVE and ENOVA focus on energy efficiency. While the NVE implements
regulations regarding energy efficiency, ENOVA is a state-run entity supporting various
activities and incentives in order to trigger a transfer to environmental means of energy
generation in Norway.
ENOVA’s programmes and activities within industry, construction and housing
are meant to stimulate the market into introducing new energy-efficient solutions and
adopting them in practice. In recent years, construction programmes have been revised
and now have a greater focus on innovators in the market, in particular the passive house
standard. In addition, ENOVA focuses on increased use of alternative sources, increased
production from renewable energy sources and the introduction and development of
new technologies and solutions.
iii Technological developments
Norway is at the forefront of development of offshore floating wind power generation.
Statoil’s Hywind project is the first full-scale floating wind turbine in the world.
In 2009, Statoil invested about 400 million kroner in construction and completion of
the pilot, including scientific research and development of the wind turbine concept.
ENOVA SF has given 59 million kroner in support of the project.
The concept has been verified during the first two years of testing and the results
have been above expectations. With few operational challenges, great production results
and well-functioning technical systems, it is expected that the Hywind concept will have
great influence on offshore wind production in the future. Statoil is at present looking
for possible future locations within the United States and the United Kingdom for pilot
wind farm projects with three to five floating wind turbines.
VI
THE YEAR IN REVIEW and OUTLOOK
The past year has offered a few notable changes. This is first related to the introduction
of the electricity certificates with a common market between Norway and Sweden. It
remains to be seen whether the certificates will boost new projects up to the ambitious
level of 26.4TWh by 2020. It is, however, certain that the market players as a result of
this new scheme will be focusing on a new commodity that will have to be traded up to
a defined minimum. The coming year will show to what extent there will be expanded
trade in these certificates.
The past year has also been challenging for the electricity grid, which suffered
great damage as a result of some extreme weather. This will doubtless have an influence
on the grid companies’ tariffs and future positions in relation to renewals, etc.
Finally, during the past year Norway also experienced some unusual changes in
temperature, rain or snow and drought, which has made the market prices on electricity
more volatile than before. It remains to be seen whether this will reflects normal future
variations due to climate changes or if the past year was merely exceptional.
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