Smart Renewables

Closing remarks by the Minister of Petroleum and Energy, Mr Terje Riis-Johansen in Shanghai, 26.05.2010.

Ladies and gentlemen,
It is an honour for me to give some closing remarks at the seminar today.  Arriving in Shanghai this morning, this is my first visit to EXPO 2010.  I am very impressed by what China has achieved in building this enormous EXPO- site and organising the necessary logistics. This is proof of China’s capability to organise giant events, like the Olympic Games I visited two years ago. 

I would like to thank Intpow, the organizer of the seminar today. I had the pleasure of giving the opening address at the official launching of Intpow in June last year, and am pleased with their achievements so far. Intpow is charged with the important task of promoting Norwegian renewable energy capabilities in international markets.  My Ministry is an active partner and main sponsor of Intpow.

There has been a close co-operation between the Ministry of Petroleum and Energy and China for many years. In September 2006, NDRC and MPE signed a Memorandum of Understanding on Enhancing Cooperation in Energy Conservation and Renewable Energy.
With the Ministry of Water Resources we signed a Letter of Intent on Cooperation in the hydropower and water resources sector in 1997. On Monday in Beijing, we will take this cooperation one step further by signing a Memorandum of Understanding on Cooperation in the field of Water Resources. 

The role of renewable energy

Why are more renewable energy and energy efficiency so important?

One fifth of the world’s population lacks access to electricity. At the same time the world faces a serious climate change challenge, which to a large extent is caused by the increasing demand for energy.
The twin challenges posed by climate change and securing enough energy for people are the most important challenges of our lifetime.

Energy use is an absolute necessity in order to maintain and increase the standard of living. But because energy is also a big part of the total climate change challenge, we must work simultaneously on a wide range of issues.

Energy efficiency, carbon capture and storage, as well as the further development of renewable energy options are all part of the solution.
These measures will benefit the environment and improve security of supply.

Increased use of renewable energy is one very important part of the answer to these challenges. Currently, renewable energy provides about 18 per cent of the world’s electricity. There is a substantial potential for increasing this share.

With more than hundred years experience as an energy nation, Norway’s focus is on responsible and efficient management of our natural resources.

Together with oil and gas, water is one of Norway’s major natural resources.  Norway is in a fortunate situation when it comes to renewable energy. We are Europe’s largest and the world’s 6th largest producer of hydropower. The result is that the share of renewable energy in Norway’s total energy consumption is about 60 per cent.

However, our numbers are quite small compared to Chinas more than 200 000 MW installed hydro capacity and a continuous development of 10 -15 000 MW per year.

Large reservoirs are vital for Norwaysenergy security but also provide the peak power for our neighboring countries during the rest of the year. Actually, close to 50 per cent of the reservoir capacity in Europe is located in Norway. Thus Norway is the “Renewable Battery of Europe”.

Hydropower works very well in synergy with other renewable sources such as wind and solar, as well as base-load fossil sources. Hydropower will help maintain grid stability and energy storage, which can increase system reliability and balance the intermittency of energy derived from renewable energy sources.

Further development of hydropower with storage either from traditional reservoirs or pumped storage could therefore play a major role to enhance energy and water security.

An efficient utilization of the overall resources isnot only limited to improved technical installations and waterways. An effective electricity market is crucial for securing the necessary and most cost-effective investments.  Since 1991, we have very good experiences with a market-based power exchange in our Northern-European region, benefiting both consumers and the environment. The foundation for this has been a strong grid, good interconnections and smart software solutions.

International cooperation will play an important role. To illustratete, nine European countries have signed the declaration «The North Seas Countries Offshore Grid Initiative». Norway has joined this cooperation. The goal is to coordinate the development of an offshore grid in the North Sea and connecting installations on the mainland.

Since the start of the 20th century, hydropower has been the backbone of our power supply and the key tool for our industrial development.

Many of our hydropower plants have therefore reached a mature age, and we are now entering a phase of upgrading and extension projects. New and more efficient equipment will often lead to an increased output of 15 to 20 per cent. The manufacturers have played an important role in striving for ever higher outputs. Working with and in China, like Rainpower has done for many years, should be of mutual benefit.

Closing

The themes you have discussed today sums up very well the major issues connected to an efficient power system or “Smart grid”. Getting more power out of existing hydropower plants will contribute substantially amounts of new electricity. Hydropower with storage capacity will help balance the system and pave the way for developing more intermittent power such as wind and solar. Strong grid connections and efficient operations and handling of power in a market oriented way will give the right price signals and increase overall efficiency.

It is my hope that this event and the events and what will follow during my stay here in China will strengthen the co-operation between Norway and China in the field of clean power generation and smart grids. This will benefit our common environment and China’s and Norway’s economic development.

Thank you for your attention!