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Your Excellency, ladies and gentlemen,

Energy is not only a key element for industrialisation and economic growth.

It is a precondition.

Today we have learned the meaning for development of the three E’s; Economy, Energy and Environment.

They are linked together. We know that from our experience in Norway and you know it all to well from your experience in India. And we have ample evidence to say that it truly matters for the climate of the planet.

I am pleased to have the opportunity to open this seminar on the future of hydropower. Norway and India have very different points of departure. But we have a lot of ground to cover together, and this seminar serves that purpose.

India is in dire need of more energy. You will need it to meet the legitimate needs of a large population and you will need it to fuel a growing economy.

It is India’s right to grow. There is no way in which the industrialised world can tell developing countries: Sorry – we filled up the waste baskets, there is no more room for you.

But our common challenge is now how we grow and how we strike a global balance between the three E’s – economy, environment and ecology.

In that equation hydropower holds a great potential. Norway’s history tells all about it.

A hundred years ago Norway was among the poorest nations in Europe. Yet, we had that un-developed treasure in our waterfalls.

Norway’s industrialisation began as we began exploring hydropower.

In the beginning, we were dependent on foreign capital and technology. Gradually, we built our own competence.

With a reliable supply of electricity, power-intensive industrial centres flourished. Local communities developed. And the economy grew.

Some 30 years ago, oil and gas was discovered on the Norwegian continental shelf. Then again we lacked the necessary competence to exploit these natural resources. We were dependent on the technology and expertise of foreigners.

During all these years we have combined taxation, strict environmental regulation, national management and control with incentives for attracting foreign companies.

Gradually, this policy has allowed us to develop our own competence. To-day, our oil and gas industry is in the technological forefront.

Still, as we speak, hydropower remains important, not least for our energy-intensive industry. Norway ranks as the world’s sixth largest hydropower producer and the world’s second largest exporter of crude oil.

India too is a major hydropower nation, both with regard to present production and future potential.

In my country, every household has access to electricity. In India hundred of millions of people lack that basic good.

In my country, we have explored the large majority of our hydropower potential. The era of developing large hydropower plants has come to an end.

In India, this is very different. You stand at the threshold of expanding your hydropower industry.

Democratic India takes its own decisions on how to explore its own energy potential. But the world should welcome that India favours energy sources that are clean, be it hydropower, wind power, sun power or other alternative sources.

I am happy that India has decided to take advantage of Norwegian technology in important up-coming hydropower projects. Representatives of our leading power companies are with me in my delegations and you will hear from them later today.

By opting for hydropower, a lesser burden will be put on the local environment, on the regional environment and on world climate.

India stands in the first line to benefit if we manage to turn the trend of global warming. The whole world too will benefit – as climate change is the closest we come to globalisation in practise.

In Norway, we have sought to make hydropower a resource that benefits the whole of society. Local communities affected by hydropower development are compensated. Public participation at various levels is provided for. These are necessary elements in an open, democratic and thorough licensing process.

Eighty-five per cent of Norwegian hydropower production is owned either by the state or by the municipalities. Like other countries, we have restructured the Norwegian electricity sector. Unlike other countries, we have not privatised it.

Our legal system provides for a high degree of state control of hydropower resources. On these issues, we enjoy broad political consensus.

Regardless of the structure of the electricity sector, regardless of country, it is key to enact legislation that ensures long-term predictability for the industry.

Part of the past decade’s reform was to secure open access to the grid for all consumers. To-day, free competition ensures that all consumers can change electricity supplier if they want to.

Another part of the reform was to split the old State Power Board into two state-owned enterprises: Statkraft, which is Norway's largest power producer, and Statnett, which owns the central grid and is in charge of operating the system. Both companies are with us here today.

The Norwegian companies offer the technical services required for developing hydropower projects. During the three years I served as Minister of Industry and Energy, I learned to appreciate their skills.

This conference provides a meetingplace for matchmaking between authorities and companies.

All this I welcome. But I also wish to see a more lasting structure for cooperation on these issues.

Yesterday, in my talks with the Prime Minister and the Foreign Minister, we agreed to crate an Indian-Norwegian Commission for cooperation.

One important feature for such a commission will be to strengthen cooperation on energy, environment and development – perhaps as a special forum inside the commission.

Such a forum can consider new projects, we can exchange views on policy and we can consider more cooperative action in multilateral fora for sustainable development, including questions related to climate issues.

Such a forum should not only include governments, but also open its doors to business, research institutions and NGO’s.

The theme of this conference falls well inside such a scope. Other areas could be oil and gaz exploration, but also development of alternative energy sources such as bio-energy.

We may have experiences of interest to the Indian side. And you do have experiences of interest to us. Together we can also join our forces to assist other developing countries in their strive for developing more environmentally friendly energy sources.

Before this visit I said that my main purpose was to encourage a Norwegian rediscovery of India. This seminar is a welcome contribution.

I wish you an interesting dialogue. I wish you a successful Indo-Norwegian Power Conference.