2009: Development driven by the world’s need for pure energy
In 2009, Statkraft has continued and reinforced the development trends that have characterised the company since the turn of the millennium. We have taken another giant step on a road that will increase our international scope while continuing to invest in Norway. Statkraft is powered by the positive dynamics of employees with high expertise and markets which recognise and need our competence. We ourselves are driven by the world’s need for pure energy.
Great leap at sea. Last year saw Statkraft become a major international player in offshore wind power. We were given plenty of attention when we, joined by Statoil and two other partners, were awarded exclusive rights to develop the enormous wind resources on the Dogger Bank – in the middle of the North Sea. Our voyage out to sea may seem bold - but it is only the continuation of an already long journey. Statkraft is well underway with the construction of the Sheringham Shoal wind farm in shallow waters 20 kilometres off the east coast of England. At the same time, we are already an established player in land-based wind power in both the UK and Sweden. In Norway, our investments in wind power are handled through SAE Vind. The lack of flexibility in wind power creates more demand for flexible hydropower, opening up the prospect of a long-term export market for Norwegian hydropower on the Continent and in the UK. Combined with the long-term perspectives for the Nordic market, this emphasises the need for more cables between Norway and other countries.
Growing through hydropower. Statkraft's future hydropower production expanded substantially in 2009. In Albania, the development of a major hydropower project has already started, and construction of the first of six plants in Turkey is underway. Back home in Norway, hydropower is flourishing. Major capacity expansions at Svartisen power plant are in progress, and pre-engineering projects have started for development of new plants in Nordland and Sogn og Fjordane counties. Our small-scale hydro involvement has shown impressive growth in the past year. Seven small-scale power plants have come online, eleven are under construction and more are on the way.
Strengthening the organisation. Last year also saw the integration of 217 employees from the power and district heating plants in Germany, Sweden and the UK into Statkraft's organisation. This took place following the transaction with E.ON, which brought Statkraft a large portfolio. It has been very gratifying to see how smoothly the integration of our new colleagues has progressed, and the expert resources Statkraft has gained through this process. Statkraft's growth strategy has also resulted in the Group continuing to hire new employees, both in Norway and abroad.
An attractive partner. Norwegian industry, which is Statkraft's largest customer group, had a tough year in 2009, and the collaboration to achieve good long-term solutions for our customers and partners remains an important priority. Through close dialogue with municipal co-owners, we have continued the development of the regional power companies Skagerak Energi, Agder Energi and BKK in 2009.
Green global growth. In 2009, Statkraft increased its shareholding in SN Power to 60 per cent. SN Power is responsible for new initiatives outside of Europe. One of the strategic pillars of SN Power's activities is to enter into local partnerships to obtain local knowledge and perspectives. During the past year, we therefore established a joint venture with the Tata Group, India's largest industrial conglomerate, for the development of hydropower in India and Nepal.
Creating substantial value today. In 2009, Statkraft has both fortified and strengthened its position as Europe's largest producer of renewable energy through new growth initiatives and consolidation of the organisation. Through power deliveries, results and investments, the company contributes to substantial value creation for Norwegian society. Statkraft has demonstrated that the company's expertise and experience within power production make it a Norwegian industrial flagship and one of the most valuable companies in Norway. We have achieved this position through the creation of value for, and in cooperation with, industry, expert sectors, local communities and society in general. We are proud of this and we intend to continue on this course!
Creating substantial value tomorrow. Being the leader in renewable energy in Europe requires continued investments. During the past year, Statkraft presented an investment plan worth NOK 90 billion for the period until 2015. We believe that realising this plan will secure substantial value for our owner and more pure energy for the world.