STATKRAFT PERSPECTIVES ON RENEWABLE ENERGY IN OPEN MARKETS

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STATKRAFT PERSPECTIVES ON RENEWABLE ENERGY IN
OPEN MARKETS

• OLUF ULSETH , SENIOR VICE PRESIDENT EUROPEAN
  AFFAIRS STATKRAFT AS

Official Launch of the Norwegian Cooperation
Programme and the EEA Financial Mechanism
SOFIA, BULGARIA 15 NOVEMBER 2007
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3.
2.
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A EUROPEAN ENERGY SCENE FOCUSING ON CLIMATE
CHANGE..
.. COUPLED WITH STATKRAFT EXPERIENCE IN RENEWABLE
ENERGY IN OPEN MARKETS..
.. IS A SOUND FOUNDATION FOR GROWTH IN SOUTH EAST
EUROPE
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A EUROPEAN ENERGY POLICY..
Sustainability
Competitiveness
Security of supply
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..WITH AMBITIOUS POLICY TARGETS
20 lower climate gas emission
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20 renewable energy
by 2020
20 better energy efficiency
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Limiting global climate change to 2C
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EMISSION TRADING AND THE POWER INDUSTRY
Emission rights have large impact on power
price level and development
Investment decisions on future fossil fuel
based power plants in Europe
Trading and origination in emission rights
Investment opportunities partly funded by Kyoto
mechanisms outside Europe

• Unilateral EU decision to reduce emissions will
  together with continued EU ETS create a de facto
  global carbon market until 2020
• Regulatory framework for EU ETS post 2012 will
  have large impact on investment incentives and
  energy mix

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MANEUVERING IN THE LABYRINTH OF SUPPORT SCHEMES
Europe 2007

• looking for the best subsidies or the best
  energy projects?

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A EUROPEAN RENEWABLES CERTIFICATE SCHEME
The case for a harmonised
market-based approach

• Significantly less expensive and more robust than
  other policy options
• Reduced environmental impact of new power
  generation
• Supports the further development of the Internal
  Energy Market through integration and interaction
  with power and carbon markets
• Creates European arena for innovation and
  technology development
• Improves the investment incentives for investors
  in renewable energy across Europe

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3.
2.
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A EUROPEAN ENERGY SCENE FOCUSING ON CLIMATE
CHANGE..
.. COUPLED WITH STATKRAFT EXPERIENCE IN RENEWABLE
ENERGY IN OPEN MARKETS..
.. IS A SOUND FOUNDATION FOR GROWTH IN SOUTH EAST
EUROPE
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GREEN, EUROPEAN AND GROWING
Hydropower
Wind power
Gas power

• The peak supplier to Europe - most flexible
  generation and largest reservoir capacity in
  Europe
• 15 years experience with liberalised markets, and
  extensive experience with cross-border European
  power business
• Statkraft will inaugurate 1200 MW gas-fired power
  in Germany and Norway over the next month
• Building on 100 years of experience with
  hydropower

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CORE TECHNOLOGIES AND MARKETS

• Nordic countries
• South East Europe
• Globally
• UK
• Norway
• Norway
• Germany/Netherlands

Hydro- power
Wind- power
Gas-fired power
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ENERGY MARKETS OPENING UP

• Statkraft with 15 years of
• experience with
• liberalised markets
• Trading electricity, gas,
• emission quotas and
• green certificates

Nord Pool
Power exchange
Gas trading
APX
NBP
Statkraft is active on NBP and UKPX
TTF
UKPX
Zeebrugge
EEX
PPX
as well as Power Next
Power Next
and OMEL in Spain
EXAA
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A LEADER IN RENEWABLE ENERGY
Power generation from wind power and hydropower,
TWh
Source 2005 and 2006 annual reports
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3.
2.
1.
A EUROPEAN ENERGY SCENE FOCUSING ON CLIMATE
CHANGE..
.. COUPLED WITH STATKRAFT EXPERIENCE IN RENEWABLE
ENERGY IN OPEN MARKETS..
.. IS A SOUND FOUNDATION FOR GROWTH IN SOUTH EAST
EUROPE
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A GROWING ELECTRICTY MARKET

• High growth in demand expected
• Need for new capacity
• Total generating capacity to increase by 10 GW
  by 2015
• Large potential power market with rapid growth
• Deregulation and privatisation
• Integration of region and with EU
• Athens MoU and Treaty
• Market opening 2008 (Industrial) full opening
  2015

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STATKRAFT SOUTH-EAST EUROPE STRATEGY
Statkrafts policy is to seek long term
partnerships to support profitable and
sustainable local and national development Incre
ase production capacity Improve water management
regimes Improve efficiency of existing
plants Encourage local development and improve
infrastructure Improve environmental performance
to meet international standards Improve return
on investments
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STATKRAFT ACTIVITIES IN BULGARIA

• Established office in Sofia in 2006
• Wholesale power trading
• Cross-border trading
• Investments in Power Generation
• Hydro Power Generation
• Wind Power Generation
• Gas Fired Power Plants

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STATKRAFT PRESENCEIN EUROPE
Head Office in Oslo
Subsidiaries
European offices
Trondheim Energi
Associated companies
Fjordkraft Småkraft
Statkraft
BKK
Stockholm
158 hydropower plants
Skagerak Energi
3 wind farms
Agder Energi
Gas power
Amsterdam
New plants (swap)
London
Düsseldorf
Belgrade
Bucharest
Sofia
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