The third energy market package agreed between EU and EEA/EFTA states

The Third Energy Market Package – EU energy market rules, were incorporated into the EEA/EFTA Agreement last week. Norway and the EU are closely connected through the energy market – by including the Third Energy Market Package into the EEA/EFTA Agreement, Norwegian actors are secured access to the EU-market. 

NSP 18-05-2017

The aim of the Third Energy Package is to improve the functioning of the Internal Energy Market. The package separates energy supply and generation from the operation of transmission networks, and strengthens the independence and cooperation of energy regulators. It also covers cross-border cooperation between transmission system operators and increases transparency in retail markets to benefit consumers. The Joint Committee Decision (JCD) contains substantial adaptations necessary for the participation of the EEA EFTA States in the Internal Energy Market. The approval of the Third Energy Package – by both sides – is the result of constructive discussions between the EU and the EEA EFTA States.

25th anniversary – The EEA Joint Committee provides a forum for the EEA EFTA States and the EU to exchange views and take decisions by consensus to incorporate EU legislation into the EEA Agreement. The meetings last week marks the 25th anniversary of the signing of the EEA Agreement since the first one in Porto, Portugal. The Agreement brings together the EU and EEA EFTA States in a Single Market, ensuring legal homogeneity. Since its entry into force in 1994, a lot of  acts have been incorporated.

EEA – The European Economic Area (EEA) brings together the EU Member States and three of the EFTA States (Iceland, Liechtenstein and Norway). It was established by the EEA Agreement, an international agreement which enables these three EFTA States to participate fully in the Single Market. The objective of the EEA Agreement is to create a homogenous European Economic Area. All relevant EU legislation in the field of the Single Market is integrated into the EEA Agreement so that it applies throughout the whole of the EEA, ensuring uniform application of laws relating to the Single Market.

NSP 18-05-2017 - v2

Renewable energy sector – The Third Energy Package Agreement between EEA/EFTA and EU is also of importance for the renewable sector in Norway – this means that there will be a close connection to the EU renewable energy market.

NPA funded GREBE and TARGET Projects meet at the Technology Festival of Northern Norway (TINN)

Target & GREBE
Norwegian project leaders, both from Narvik: Dr. Wei Deng Solvang (TARGET) and Fred R. Johansen (GREBE)

TARGET is a NPA-project designed to enhance the capacity of manufacturing companies to innovate and embrace new technologies – making regional manufacturing globally competitive. Partners of the TARGET Project were recently in Narvik to discuss how to deliver state-of-the-art technological supports to local businesses in the NPA-regions. This time, in collaboration with the GREBE project partner – Narvik Science Park at the  Technology Festival of Northern Norway (TINN). Partners concluded that renewable energy (GREBE) and digitalization (TARGET) represent two key factors in the global market competition.

Bulding regional competencies

Manufacturing in the NPA region has many important strengths. These include regional and niche specific competencies that are world leading in specific sectors unique to the region. However, the majority of manufacturing companies are predominately small in size and face considerable challenges like geographical isolation from major markets and a lack of the benefits offered by more populous and urbanised economic urban clusters. When combined with global trends that see a shift in manufacturing to lower cost and developing economics with rapid advances in new technologies, this means that support measures are needed to strengthen the manufacturing sector.

TARGETs Partners are:

  • South West College, Northern Ireland (Lead Partner)
  • UiT – The Arctic University, Campus Narvik – Norway
  • Centria University of Applied Sciences, Finland
  • Luleå University of Technology, Sweden
  • Cavan Innovation and Technology Centre, Ireland
  • Local Enterprise Offices Cavan and Sligo, Ireland

Target project

A collaborated competence platform

The focus area in the TARGET- project is to provide a toolbox to facilitate manufacturing companies´ application of innovation and embracing new processes and practices such as virtual and parametric design and simulation, reverse planning, modelling and 3D printing, remote monitoring and programming of NC machines and robots, 3D measurements, application of digital data and vision based quality assurance. Coupling these with key market analysis skills such as trending, testing and integrating products into a whole cycle of service delivery will build the competitive advantage and value of manufacturing firms. The key is to converge all of these technologies to produce an integrated, automated and highly efficient manufacturing environment – putting the knowledge economy into manufacturing.

Target project - image1

Global competitiveness

The TARGET project will develop supports to build future global competitiveness of NPA region manufacturers giving them a new influx of innovation, technology and novel processes. This will open up new and promising opportunities and reduce the competitive and knowledge gap through the introduction of new processes, techniques, knowledge and skill and will demonstrate the benefits to be gained through the application of these supports to position NPA manufacturing industries as world leaders in their sectors and building sustainable competitive advantage.

GREBE Project holds green business & renewable energy workshop in Norway

Narvik Science Park (NSP) hosted a green business/renewable energy workshop from 21th to 22th March 2017 – with focus on new policy mechanisms and the policy agenda in different sectors of renewable energy. A registration of 110 participants means that renewable energy is hot also in the Arctic areas. 

Policy workshops

The arrangement of policy workshops in the GREBE-Project is to provide information on the existing policies and business support funding mechanisms in each partner region, which relate to developing business opportunities in the renewables sector – and (for the Narvik policy workshop) also to provide access to professional contacts/networks in Northern – Norway (NPA Region), in order to disseminate information on new policy models and business funding options.

The workshops are a fundamental part of identifying the existing policies and business support funding mechanisms that already exist in each partner region, and in assessing how effective those policies and mechanisms have been. The work will then concentrate on identifying new initiatives which will further promote renewable energy business development in each partner region – and ensure that interventions are made.

Key objectives

  • To identify and promote opportunities for policy to provide an effective supporting framework for sustainable renewable energy business.
  • To promote awareness and understanding of funding support, mechanisms available to assist renewable energy businesses, start ups and SME enterprises in NPA regions

The seven sectors below were represented at the workshop:

  1. Co2- capture and storage (CCS)
  2. Hydro Power
  3. Electricity Distribution
  4. Energy Efficiency
  5. Solar Cell Technology
  6. Wind Technology
  7. Small Hydro Power Plants

Further information about GREBEs policy and funding mechanisms analysis can be found on the publications page of the project website http://grebeproject.eu/publication/

 

 

New Norway – Scotland electricity cable proposed

nsp-24-02-2017

The North Connect Consortium plans to apply for a Norwegian licence to the Norwegian energy ministry for its planned interconnector between Sima in Norway and Peterhead in Scotland. The cable would make it possible to export the large electricity surplus in Norway and to import wind power from Scotland to Norway. It is estimated that the net annual power exports from Norway could be between 5-9 TWh.  

Industrial relationship

NorthConnect is a project company owned by four partners in Norway and Sweden. The companys directive is to plan, build and operate an cable interconnector between Norway and the UK. The project is now preparing for an application to the regulator for a financial arrangement which governs revenues on the 650km interconnector. The NorthConnect partners strongly feel that the project offers good value to the UK consumer and once built would help forge a strong complementary industrial relationship between Scotland’s world class wind sector and Norway’s hydro capacity.

On the Scottish side of the project, the development team is now preparing a planning application for subsea infrastructure works and near shore connections on the Aberdeenshire coast. These offshore works, if consented by Scottish Ministers, would hook up with the already consented onshore electricity converter station near Boddam and Longhaven.

Inclusion of a fibre-optic cable

The NorthConnect consortium is also assessing the feasibility of laying a fibre optic broadband link, alongside the power cable, to connect the north east of Scotland and Norway.

NorthConnect has investigated the inclusion of a repeaterless fibre-optic data cable in the project, and initial findings show it will be technically feasible and very cost-effective when combined with the power cable design, manufacture and subsea installation. The commercial aspects are being examined further, but NorthConnect has a unique geographic advantage where it meets the Norwegian and UK coastlines, crossing strong, existing fibre-optic links.This will also provide a significant opportunity to Norway and Scotland for the development of data-centres.

EU – Network Development plan

NorthConnect has been included in the EU’s 10 year Network Plan and ranked among the most important projects with PCI (Project of Common Interest) status for Socio-Economic welfare, CO2 reduction and integration of renewables across Europe.

The projects are ranked and scored across a number of technical, environmental and economic criteria, and NorthConnect shows up as one of the highest rated projects in Europe for Socio-Economic Welfare, CO2 Reduction and Integration of Renewables. A number of other independent studies over the past 3 years have also shown very high welfare value, carbon savings and renewables facilitation for up to 4.5 Gigawatts of interconnection between Great Britain and Norway.

The rumours are true – Norway and Scotland have an affair !

Renewable Energy Technology Development: Short Term Policy Recommendations for Nordic Countries

nsp-26-01-2017

There is a clear technological and economical pathway for the Nordic region to push towards a more near carbon-neutral energy system in 2050. The Nordic countries want to send a strong signal to the global community that the ambitious aims of the Paris Climate Agreement are achievable. This is the conclusion from the; Nordic Energy Technology Perspectives Report 2016 – from The International Energy Agency and Nordic Energy Research.

The ambitious pathway outlined by the Nordic countries, who specifically wants to act in four key areas:

  1. Strengthen incentives for investment and innovations in energy technologies.
  2. Boost European cooperation on grid infrastructure and electricity markets.
  3. Reduce process-related emissions in industry
  4. Accelerate transport decarbonisation

 

1.Strengthen incentives for investment and innovation in energy technologies.

The Renewable Energy Policy should accelerate the  roll-out of key flexibility technologies and  incentivise their utilisation for flexibility through market mechanisms and regulation. Markets must also adequately compensate flexibility services such as demand response in industry and  buildings, as well as the flexible operation of small power plants. Information technology (IT) infrastructure (smart meters) and IT platforms (consumer Apps or control systems) will be important  in achieving a rapid penetration of these flexibility services.

2. Boost European cooperation on grid infrastructure and electricity markets.

Coordinated effort to strengthen domestic grids and install new transmission lines is needed to  establish the future Nordic and European electricity system (‘The Green Battery Strategy’).  Regional collaboration on infrastructure planning is needed to ensure optimal investments and avoid bottle-necks in the grid. Coordination among Nordic governments is vital to ensure that policy accelerates  technological and regulatory progress in order to reduce total costs. Cooperation in reforming the common Nordic electricity market to allow greater flexibility and accommodate higher shares of variable renewables will also be important.

3. Reduce process-related emissions in industry.

The Renewable Energy Policy should take steps to ensure long-term competitiveness of Nordic industry while reducing process-related emissions. More variable and potentially higher electricity prices will put additional pressure on energy-intensive industry in the Nordic region, stressing the need to step up low-carbon industrial innovation. Governments should act to reduce the risk of such investment and use public funding to unlock private finance in areas with significant emission reduction potential.

4. Accelerate transport decarbonisation.

Even as Nordic countries pursue different technology strategies in parallel, they should not wait to draw on  the wide range of available policy instruments to stimulate fuel efficiency, low carbon technologies and shifts to more efficient transport modes. Governments should build upon positive experiences with measures such as congestion charging in urban settings, differentiated vehicle registration taxes, bonus-malus regimes, and altered parking fees, while also stepping up investments in infrastructure  for cycling, public transport and rail. Policies should also incentivise modal shifts from road freight to sea and rail, and from cars to public transport and cycling.

Nordic and European collaboration on energy policy can play a role to reach the ambitious aims of the Paris Climate Agreement.

Could Norway become a hydrogen nation?

h2-hydrogen

Local businesses in Narvik says yes – we both can and shall become a green hydrogen nation. “Let’s use the surplus and trapped renewable energy to produce hydrogen – and distribute the hydrogen and make it accessible to growing zero emission markets in Norway and the rest of the world”. This is the conclusion from the Hydrogen meeting in Narvik arranged by Narvik Science Park.

The Renewable Energy Directive 

The EU Renewable Energy Directive establishes an overall policy for the production and promotion of energy from renewable sources in the EU. It requires the EU to fulfill at least 20% of its total energy needs with renewables by 2020 – to be achieved through the attainment of individual national targets. All EU countries must also ensure that at least 10% of their transport fuels come from renewable sources by 2020.  In November 2016, the Commission published a proposal for a revised Renewable Energy Directive to make the EU a global leader in renewable energy and ensure that the target of at least 27% renewables in the final energy consumption in the EU by 2030 is met.

National action plans

The Directive specifies national renewable energy targets for each country, taking into account its starting point and overall potential for renewables. These targets range from a low 10% to a high of 50%. EU countries set out how they plan to meet these targets and the general course of their renewable energy policy in national renewable energy action plans – and the progress towards national targets is measured every two years when the EU countries publish national renewable energy progress reports.

The Directive promotes cooperation amongst EU countries and with countries outside EU (Norway) to help EU meet their renewable energy targets.

Norway – Hydrogen nation?

Norway would have a close cooperation with EU and will adapt to the Renewable Energy Directive by making national plans for Norway – especially for Hydrogen, where Norway would start to make a strategy for Hydrogen production and establishing Hydrogen Fuel stations  across the country from January 2017.

Norway is in a unique position as it has a surplus of renewable energy production, annually 20 Terrawatt hours, and limited grid capacity for export – which means trapped renewable energy production that could be used for Hydrogen production. There also exists a political will to support energy intensive industries such as hydrogen production. This means that hydrogen could play a significant role in the future – both as export of hydrogen and as fuel for national land transport (Network of Hydrogen fuel stations).

Hydrogen meeting in Narvik

The Narvik Hydrogen meeting was arranged by Narvik Science Park in cooperation with the Hydrogen production company; Glomfjord Hydrogen and the Hydrogen technology company; NEL Hydrogen – just to look into the interest for establishing Hydrogen fuel stations across Norway – and the local businesses interest for investing in Hydrogen fuel stations. 20 local companies say yes to hydrogen technology solutions and that Norway should become a hydrogen nation.

From Spring 2017 there would be a close cooperation between Narvik Science Park and ENOVA – to look closer into how local companies can contribute to investments in hydrogen technology solutions and establishing Hydrogen fuel stations in the Narvik region – as a bit of a national plan to become a hydrogen nation.

New energy and climate technology in Norway

nsp-24-10-2016

New technology in general, and energy and climate technology in the industry in particular, has been subjects of increased focus for the Norwegian Energy Department and ENOVA in 2015. The goal of the technology projects is to harvest experience that will contribute to expertise development, innovation and spread of the technology – both nationally and internationally. ENOVA’s role is allowing new technologies to be tested in the market, and then the market can determine the winners. The GREBE-Project would follow the development and results of this programme closely.

ENOVA was established in 2001 in order to drive forward the changeover to more environmentally friendly consumption and generation of energy in Norway. ENOVA promote more efficient energy consumption and increased production of ‘new’ renewable energy via targeted programmes and support schemes.  A number of energy and climate and projects received support in 2015.

Technology projects often have relatively modest energy results compared with the support they receive. Untested and immature technology will usually be significantly more expensive than standard solutions. The support need will therefore also be higher than for projects based on well-tested technology. The total, direct energy result for 2015 is thus modest compared with the support of NOK, but these projects are expected to result in long-term ripple effects and positive effects for the climate.

Selection of the 10 largest projects within energy and climate technology 2015:

  • Wave4power AS – Full scale demonstartion of 100kW wave power buoy
  • Agder Energi Vannkraft AS – Small scale power turbine
  • Kildal Kraft AS – Mini power station installed in container
  • Lyse Elnett AS – Grid technology – reduction of grid loss
  • NEL Fuel Norway AS – Energy efficient hydrogen filling station
  • Eidsvik Offshore ASA – Installation of energy system (battery) in supply vessels.
  • Glencore Nikkelverk AS – One-stage electrowinning process
  • Arba Follum AS – Production of bio-gas
  • Tizir Titanum AS – Verification of new furnace technology
  • Posten Norge AS – Low-energy logistics building based on RE

Development and introduction of New energy and climate technology in the market  – in 2015 a total of 54 projects were granted funding commitments from ENOVA.  Overall, this amounted to NOK 1,4 billion.

Climate Agreement in the Storting in 2012 

The development of new energy and climate technology is very important in order to solve the global climate challenges. However, these new technologies must reach the market in order to have the desired impact.

In the Climate Agreement in the Storting in 2012 – the Storting look upon the primary goal of investment in new energy and climate technology as investments that should contribute to reducing greenhouse gas emissions and support the development of restructuring energy end-use and energy production in the long term by developing and utilizing technologies and new solutions – that can contribute to this.

With its capital base and proximity to the market – they saw ENOVA as a instrument to bring technology initatives from the pilot phase and over to market introduction.

From 2012 ENOVA has the responsibility for management of the Energy fund. The Energy fund is the instrument that the Stortinget suggested as a solution for getting ideas and pilot projects on their way to market.

From the pilot phase – to market

The way from the pilot phase to the market – is a critical phase for the projects, where they will demonstrate to the market that the technology functions under normal conditions. This is also a capital intensive phase. When ENOVA awards support to technology projects, this is with the expectation that many of them will be successful, but not all.

Making it through the critical introduction phase is no guarantee for success in the market. Some technologies succeed and gain a foothold which can be built upon. However, for many technologies, the first encounter with the market will reveal a need to test new approaches and concepts, which may entail having to take one or more steps backwards in the innovation chain. Other technologies are weighed and found wanting in the competition with other technological solutions.