Delegates and participants,
It is a pleasure for me to be invited to this industry workshop that is organised in connection with the Solar Combi Systems task. I hope you all have had, and will have, some interesting and enjoyable days here in Oslo. Looking back at the cold and dark season we’ve just left it is a pleasure to feel that the sun is starting to warm us up again, pushing the winter away, and underlining the fact that even in Norway energy from the sun can be exploited.

In this short speech I will address the solar energy in the Norwegian energy policy, starting with a general picture of the energy situation in Norway today.

Norway is blessed with an abundant supply of energy. We are also the country in the OECD which has the greatest share of renewable energy in our energy supply system. About half of our domestic energy consumption derives from renewable energy sources. Hydropower accounts for 99 per cent of the electricity generated in Norway.

In recent years the electricity consumption has increased more than the supply of new production capacity. From 1990 up to 2000 our yearly consumption of electricity increased by 18 TWh, while the production capacity in the same period increased by only 3,9 TWh. This has led to Norway turning from a net exporter to a net importer of power in years with average precipitation. Today the average production capability of the hydropower plants is about 119 TWh/year, while the consumption is 125 TWh.

This is a development which calls for action. We have to bring about a shift in our energy system. To cope with this challenging situation, the Storting (The Norwegian Parliament) on 27 March in 2001 approved the establishment of a new public enterprise for promoting energy savings, new renewables and environmentally friendly natural gas solutions. The name of the new enterprise is Enova and it is situated in the city of Trondheim - in the middle of Norway. Enova has been operating from 1 January 2002. Enova is owned by the Government of Norway, represented by the Ministry of Petroleum and Energy.

Before Enova, measures aimed at initiating energy efficiency and new renewables were divided among the Norwegian Water and Energy Directorate (NVE) and the grid companies (through Demand Side Management Programs). The establishment of Enova aims to secure a more cost-effective use of public funding so that energy saving and new renewables may have a real impact on the Norwegian energy balance.

A central task for Enova will be to reach the energy objectives that were approved by the Storting in the spring of 2000. These are:

• to limit energy use considerably more than would be the case if developments were allowed to continue unchecked
• to increase annual use of central heating based on new renewable energy sources, heat pumps and waste heat by 4 TWh/year by the year 2010
• to construct wind generators with a production capacity of 3 TWh/year by the year 2010.

To achieve these objectives, the Storting has indicated grants within a framework of up to NOK 5 billion (approximately 650 million Euro) over a ten-year period. The funding will come from a levy on the distribution tariffs and from ordinary grants over the State budget. For 2002 Enova is receiving approximately 60 million Euro. Enova will use this funding to finance programmes and initiatives that are in line with the objectives. Investment support is granted to wind energy projects and to projects that will increase the use of central heating based on new renewable energy sources, heat pumps and waste heat.

In addition to the investment support, the Government has established other measures and incentives to speed up the introduction of new renewables in Norway. Investments in most new renewable energy technologies, including solar energy systems, is given exemptions for investment taxes, and production from wind energy is supported corresponding to half the consumer tax on electric power per kWh produced.

The Government does also wish to encourage a more effective use of energy in buildings. In a white paper on climate, issued just before Easter, the following initiatives are brought forward, among others:

• a national action plan for central heating based on new renewable energy sources, heat pumps and waste heat,
• a support grant for heat pumps in private households, which comes in addition to the already existing grants for official and business buildings,
• possible new regulations in the planning and building act, making it possible for the authorities to demand certain energy solutions through town and country planning procedures, as well as giving specific demands as to the use of energy in new buildings and a shift of energy systems in existing ones.

I think that the last measure may be interesting as supplementary to the IEA project on Sustainable Solar Housing, in which I know that Norway takes an active part. It is important that different measures are viewed together, so that the public may have the benefit of simplification, coordination and cooperation between the different actors.

Moreover, research and development is an important and integrated part of our energy policy. There are two main objectives behind the authorities' support for energy R&D; firstly, the funding is intended to maintain the prominent position held by Norwegian energy related industry internationally. Public funding is used to develop expertise that industrial enterprises and others can use in their long term strategies. Secondly, such support is intended to promote the development of new energy technologies and innovative solutions and thus create a more efficient and environmentally sound energy supply system. A strong focus on research and development is important to be able to meet the challenges we are facing in the energy sector today.

There is no specific goal directed at introducing solar energy to a greater extent in the Norwegian energy system. Solar energy projects will be considered by Enova along with other energy projects within the framework of a long-term and environmentally friendly shift in the energy system.

Today solar energy does not play an important role in Norway. However, the potential to increase our use of solar energy is large. What contributes most to the energy supply when it comes to solar energy is passive solar heating. Today, solar radiation that shines through windows and heats up the interior parts of a building, is estimated to cover 10-15 percent of the heating requirements of the building. This corresponds to about 3-4 TWh/year. And, even in the harsh Norwegian climate, intelligent design with passive solar heating can be sufficient to cover 25 percent of the heating requirements.

When I was studying to become an architect, my class had an excursion to Italy. I remember a professor of architecture in Venice asking us what we did in Norway to avoid the sun shining into our houses. That was a rather new way of looking at it from our point of view. We have not so much sun as to make it a thing to be avoided. As you may have noticed, Norwegian houses are often built with large window panes, letting as much of the sun in as possible. And that may in turn make it convenient to design houses that makes the most of passive solar heating.

But active solar heating systems is also used in Norway. It is calculated that about 6 000 m² solar collectors are installed in Norway for room and/or water heating, giving approximately 1,5 GWh/year. Between 5 and 10 percent of the yearly solar radiation on a single family home in a Nordic climate could cover the total annual heat demand. However, most of the energy is available in the summer, while most of the heat demand occurs during the winter. In order to build houses in higher latitudes with a high solar fraction, seasonal storage which is loaded during the summer is needed. This is of course familiar to you, so I will leave it there. My point is just that even for Norway, active solar heating systems have potentials.

When it comes to electricity from solar cells, or photovoltaic (PV) systems, Norway is already a large user - believe it or not. Situated between latitudes 58 and 71 north, Norway has limited hours of daylight in the winter, and parts of the country enjoy midnight sun during the summer. This, together with relatively low electricity prices because of our large hydropower resources, makes the natural conditions for PV utilisation not particularly favourable.

But despite this situation, small PV systems have become very popular in Norway, especially among owners of cottages and recreational homes far from the electricity grid, but also on lighthouses along our coast. For such applications the electricity is mainly used for lighting, and represents in many cases a cost-effective alternative to grid connection, diesel, etc. As a result, as many as approximately 80 000 solar cell systems have been installed in Norway. In total they amount to nearly 4 MW. In addition, there is an interesting potential for building integrated solar systems, for instance in commercial buildings.

Before I finish, I will underline the importance of international energy technology co-operation. Countries differ significantly with respect to their points of departure, their energy structures and their flexibility in designing an effective policy response to reach the Kyoto-targets. We have, however, one incontestable common challenge which all countries should work together to solve. Both markets and governments have a role to play in meeting technological challenges in the medium and long term. I would like to emphasise international co-operation and networking across borders between governments, commercial actors and the research communities as keys for future progress to be made.

The IEA has been an important vehicle for policy analysis and the source of increased understanding of the effectiveness and realism of different policy options. It has also become a catalyst for developing networks of international co-operation in energy technologies through the implementing agreements. I hope that the IEA will continue its efforts to increase the awareness and understanding of the energy dimension of ongoing processes.

Having a relatively small energy R&D community in Norway, it is our policy to focus our activity on topics which are of particular interest to us, and where energy research can contribute to our overall energy policy. To get a total picture of what is going on in the energy R&D field world-wide, it is important to be kept informed and updated on energy R&D activities in different countries.

For Norway, then, it is of vital importance to have an international network to turn to for information and to participate in international energy co-operating agreements and projects. It is also important to contribute to solve energy problems on a global scale by communicating to other countries information on R&D activities in Norway. Exchange of information on energy technologies is a cost-effective way to strengthen our competence and knowledge in the energy sector.

I hope this presentation has given you a picture of Norway's energy policy, including the role of the solar energy in this respect, and I wish you all an interesting workshop and some pleasant days in sunny Norway.

Thank you for your attention.