Energirådet Fornybar energi - store muligheter i

Fornybar energi - store muligheter i nye vekstmarkeder
Øistein Andresen, CEO
Energirådet
25th February 2008
1
Our context
2
Global energy demand
Two billion people have no access to
modern energy services
3
Global energy demand
The challenge lies in finding ways to
reconcile this necessity and demand for
energy with its impacts on the natural
resource base in order to ensure
sustainable development
United Nations
Division for Sustainable Development
4
Link between the power sector and
climate change
Total emissions =
40 Gt CO2
5
Source: IEA
Hydropower potential
75%
69%
7%
33%
56
mill
Millions of people without electricity
Source: WEO 2002
22%
1,042
mill
537 mill
49%
Percentage of hydropower potential that
has been developed
Source: World Atlas of Hydropower & Dams, 2002
6
SN Power is placed in the intersection of two
global megatrends
Demand for
renewable energy
Growth in emerging markets
7
Our business
8
Mission
”To become a leading hydropower company in
emerging markets, contributing to economic
growth and sustainable development”
9
Business objectives and strategy
9 Established in June 2002 Jointly owned by Statkraft (50%) and Norfund (50%)
9 Business objective: To invest in clean, renewable energy
projects on commercial basis in selected emerging markets
9 Long-term investment strategy
9 Capitalizes on its owners’ technical and financial strength and
international hydropower experience
10
SN Power presence
Established in Asia and Latin America
India
Nepal
Sri Lanka
Peru
Chile
Brazil
Philippines
Vietnam
Laos
Mozambique
11
Investment approach
9Industry returns
9Project finance
9Active ownership
9Partnership approach
9Balanced portfolio
9Environmentally and socially manageable projects
12
Portfolio & ambition
Net Portfolio (equity)
Operating plants
MW
548
GWh
2425
Construction
272
1086
Total
820
3511
Pipeline
1800
Ambition
8000
4000 MW
15 - 20 TWh
13
Supplying 6 million people with electricity
People supplied
12 000
10 000
1000 people
8 000
Partners
SNP
6 000
4 000
2 000
0
India
Philippines
Chile
Peru
Nepal
Total
14
The Clean Development Mechanism
A leading role in the hydropower sector
9 SN Power is committed to developing projects that contribute to reduced
greenhouse gas emissions
9 We seek to comply with CDM criteria on all new projects
9 Have registered the two largest hydropower projects to date
Hidroelectrica La Higuera, Chile
Allain Duhangan Hydro Project, India
Emission reductions of approx
Emission reductions of approx
478.000 tonnes of CO2 per year
495.000 tonnes of CO2 per year
15
SN Power Greenfield Pipeline (100%)
CO2 Reduction
1000 Tonnes CO2
12 000
10 000
8 000
6 000
4 000
2 000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
16
Our competence
17
Norwegian heritage
Strong hydropower expertise
International mindset
18
Hydropower experience and innovation
in Norway
9 International exposure
9 Attract young professionals
9 Strengthen hydro-cluster
19
Success Factors and Lessons Learned
20
Key Success Factors
9 Establishing SN Power as a special purpose
company
9 Strong owner commitments
9 Clearly defined business strategy
9 Thorough, consistent, yet efficient investment
process
9 Competent people make the difference
9 Ability to build organizational capacity in the
markets
21
Lessons learned
9 Entry strategy: acquisition of operating assets
9 Early local presence
9 Majority/controlling positions is key
9 Local partners pros/cons
9 Importance of ethics
22
Summary
23
SN Power has demonstrated a huge potential for
Norwegian hydro expertise
9Reconciling the need for development in emerging markets with the
global need to combat climate change
9Largest holder of certified emissions reductions quotas in the
hydropower sector and in Norway
9Profitable business based on Norwegian competence
in key emerging markets
9Need for continued innovation and joint efforts within hydro-cluster in
Norway
24
Thank you!
25