Hydropower supporting other renewables

Opening address by State Secretary Sigrid Hjørnegård at the 6th International Conference on Hydropower in Tromsø, 01.02.2010.

1. Introduction
Dear ladies and gentlemen,
It is a great honour for me to give the opening address at this important conference. Hydropower is a significant and clean energy source, which in my opinion deserves even more public attention.

First, I would like thank the International Centre for Hydropower for organising the Conference. Through the International Centre for Hydropower the authorities, utilities, consultants and universities work together in order to share knowledge amongst themselves and with other interested parties. This Conference is one of many positive outcomes of this cooperation.

2. Climate change and hydropower’s role
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.

In mid-December I was present in Copenhagen at COP 15 where I followed the climate negotiations closely.

During the negotiations, we witnessed for the first time that world leaders sat together and negotiated solutions. Even though we did not come as far as we had hoped, the Copenhagen Accord reflects a political consensus on the long-term goal of limiting the global temperature rise to two degrees Celsius. In my opinion, the meeting it selves and the outcome of the meeting, is an important step in the right direction.

Within the context of adapting to climate change and the increasing variability of floods and droughts, the need for increased water-storage capacity is ever more pressing.

Providing clean drinking water, enough water for irrigation and a capacity to control floods will be huge challenges for water resources authorities all over.

Hydropower lies at the nexus of water and energy and has a key role in getting the optimum use of multi-purpose water storage schemes, often being an economic catalyst for their implementation by sales of clean, renewable and affordable domestic energy.

3. Norway and hydropower
Historically, Norway has been a major hydropower producer for more than one hundred years. Hydropower’s share of our electricity production is close to 100 per cent. We have installed 30 000 MW and we have an annual hydropower production of 125 Terawatt hours a year in average. This makes Norway the world’s 6th largest hydropower producer.

The result is that the share of renewable energy in Norway’s total energy consumption is higher than 60 per cent. If you compare this to the European Union’s target of a 20 per cent share by 2020, you will realise that Norway is very advanced in developing renewable energy.

Large reservoirs located mostly in remote mountain areas are vital for our energy security during cold and dry winters. They 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. This has led some to brand Norway as the “Renewable Battery of Europe”.

Sustainable hydropower development is important for Norway. We put a lot of emphasis on environmentally and socially sound hydropower projects. Other important aspects of the licensing system are transparency, public participation and benefit-sharing.

A farsighted legal framework ensures that the benefits generated by hydropower production are shared with the local communities. This has been very important for the development of our hydropower resources. Today, we enjoy the advantages of an energy source which is climate-friendly and domestic.

4. The future role of hydropower and other renewables
Renewable energy provides about 18 % of the world’s electricity. Hydropower is alone responsible for producing 16 per cent of the world’s electricity. This gives us an idea of the importance of hydropower amongst renewable energy sources.

Worldwide, there is a call for large-scale deployments of renewable energy. In particular, this is true for “traditional” sources such as wind power, solar power and hydropower.

 However, there is also an increasing focus on developing technologies to unlock the potential of other renewable energy sources such as floating offshore wind generation, wave – and tidal power, as well as osmotic power. Norway is actively engaged in developing these new energy sources.

Some think that developing hydropower here in Norway, is history. That is wrong! We will both develop new median size projects and upgrade existing plants to secure more renewable and clean electricity supply. There is also a huge interest in developing small hydro projects below 10 MW.

The services provided by large hydro, notably when storage is used, will increase the value of hydropower.

As I mentioned earlier, the European Union has set an ambitious target to reach a 20 per cent on average share of renewable energy within 2020.
To a large extent, this means large-scale development of wind and solar projects.  In contrast to hydropower with storage capacity, supply from wind and solar power will need some kind of back-up.

Furthermore, last summer the Ministry presented a strategy for developing offshore wind power. The potential for using this energy source is huge in Norway. Looking a decade or so into the future, I believe we can develop floating windmills which can harvest this resource. In Norway we have strong competence in the offshore petroleum sector and maritime sector. Offshore wind gives an opportunity to develop new energy-industry based on existing knowledge.

Coupled together with our hydro storage capacity and stronger interconnections, offshore wind from the Norwegian Continental shelf may become a major source of electricity to Europe in the future.

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.

I think it is important to have this in mind when we enter a period of massive deployment of intermittent energy sources and a changing climate.

Consequently, the theme for this Conference, “Hydropower supporting other renewable” is very well chosen and timely.

5. Norway’s international focus
Finally, I will like to highlight some of our international activities.

In January last year the International Renewable Energy Agency - IRENA – was founded. The founding of IRENA is further proof that the time is ripe for a major boost of renewable energy. Norway has already ratified the Statutes and is very much committed to work with other countries within the framework of IRENA.

Through the program “Clean Energy for Development”, the Norwegian Agency for Development Cooperation has substantially increased its funding for renewable energy in developing countries. The program targets areas where Norway has special competence, like in hydropower.

During more than a hundred years, Norway has developed expertise covering most stages of hydropower development. Throughout, there has always been a clear focus on finding efficient, environment-friendly solutions. We therefore regard hydropower, of all sizes, as a clean, renewable and climate friendly source of energy.

I am very pleased that several Norwegian companies have brought with them this tradition when working abroad.

I visited Chile just two weeks ago for the opening of SN Power’s first wind power plant ever, together with the president in Chile, Ms. Michelle Bachelet. During my stay I also visited SN Power’s two hydropower plants La Higuera and La Confluencia. These projects have meant, and will mean, a lot for rural development.

For me, this was trip to Chile gave me a good insight in how Norwegian companies develop renewable energy abroad. And I must admit that I was a bit proud when president Bachelet thanked SN Power in her speech. She did not only thank SN Power for what they had done – that means more green energy – but also for how they had done it; how they had taken social and environmental responsibility during the project.

There are several other Norwegian companies which are investing in hydropower developments in new markets and developing countries. You will hear more about their experiences during this Conference.

My visit to Chile gave me a very good first-hand experience of how we together can use the Norwegian model of developing hydropower in other countries.

There is no doubt in my mind that this approach will benefit the local people and the environment. The Norwegian Government fully supports this activity.

6. Closing remarks
I will now conclude by expressing my sincere belief in a bright future for hydropower.

I wish you good luck with the Conference and I hope you will enjoy fruitful and interesting discussions.

Thank you for your attention!