Kraft-mygg is the largest developer of renewable energy in Norway – E24

Kraft-mygg is the largest developer of renewable energy in Norway – E24

Small hydropower plants make up a large proportion of the energy developed in Norway at present. – It's a bit strange, says Terje Vidler at Småkraft AS.

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Nearly half of the new renewable energy production currently being developed in Norway are small power plants of less than 10 MW.

CEO Terje Vedeler of Småkraft AS points this out. He meets E24 after a presentation at the Pareto Securities Energy Conference, and points out number From NVE (see table).

– Our company represents 24 percent of the development that takes place today, not only in hydropower, but in renewable energy in general, says Fideler.

– Are you someone who builds a lot or someone who builds little?

– He says that others are the ones who build little.

The 20 projects Smokecraft has under construction, according to Fiedler, will be able to provide about 0.27 terawatt-hours of electricity annually.

If you look at all the power plants that were under development in Norway as of the third quarter, they would provide an annual production of 1.12 TWh, according to NVE numbers.

Norway's total annual electricity production is about 155 terawatt-hours.

Smaller power plantsSmaller power plantsPower plants with a capacity of less than 10 megawatts In Norway it provides a total of about 12 terawatt hours of energy per year, According to NVE. This is roughly equivalent to wind power, which provides about 15 terawatt-hours per year after significant expansion in the past decade.

– A bit strange

At the end of the last decade, there was a boom in wind energy development in Norway, partly driven by foreign funds. Investments have declined since then, after strong opposition and a longer pause in the licensing process.

– The Energy Commission, Government, NHO and LO are talking about huge energy needs. What do you think is really happening in the energy sector?

– When I'm at conferences like this and I hear about plans and opinions, I think it's a bit strange that the delivery is so small than the big one. “Those of us who work on a smaller scale persist and succeed year after year, but if we want to get there in 2030, something has to happen,” says Fiedler.

The Energy Commission, NHO, LO and the Norwegian Environment Agency have all said that a significant amount of energy is needed if Norway is to meet climate targets and develop new industry.

-We are a small contributor to this, but we will do what we can. But then everyone has to make an effort to get to the finish line. There are also limitations to processing and accessing cases online, Fiedler says.

– But I think it's strange that we, as a small company with 30 employees, are actually the largest developer of renewable energy in Norway today. He says it's a bit strange.

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– I think it'll come loose now

Energy Minister Terje Aasland (AFP) was also among the speakers at the Pareto Energy Conference last week. He is not concerned that too little power is being developed.

“I think the matter will be resolved now,” Åsland tells E24.

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It will likely be some time before more wind energy arrives. But Åsland points out that Parliament promised municipalities more power and money, and allocated a share of the income to the affected parties. Before Christmas, there was a settlement in the Storting over the ground rent tax.

-So the wild winds will come. We see energy upgrades in hydropower coming, Statkraft has delivered their projects, and Lyse, they are working on several projects. “I hope everyone sitting on stored water does that,” says Aasland.

Many hydropower players have promised investments worth tens of billions in modernizing and expanding their facilities. Among them are Lys, Statcraft, Eveny and Oh energy.

Energy Minister Terje Aasland (AFP).

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-You must do better

According to the Småkraft manager, there is a greater marginal return in small power plants than in large ones.

-The smaller the power plant, the lower the return. He says that the returns we have achieved in recent years are not viable, and we must provide better than what we have provided historically.

– Now we are getting some help from prices which all analysts believe will remain at higher levels than before. But we must also continue to make operations more efficient in order to get a more sustainable return, says Fideler.

– What type of return did you deliver?

– It varies greatly from year to year, but in recent years there has been a low single-digit return, around 2-3 percent.

– Is it because you have long-term price protection agreements?

– In recent years you have destroyed a lot for us. We are not alone in that. But we very much look forward to completing this part during 2025, and to be able to achieve results more in line with expectations.

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CEO Thierry Vidler at Småkraft AS.

Småkraft AS is owned by APG, where many Dutch people get their pension money, as well as a German insurance company and a fund managed by Aquila Capital.

– The reason there are so many foreign owners in this business is because they have lower return requirements and longer-term return requirements than Norwegian investors, says Vidler.

In total, Småkraft operates more than 200 small power plants in Norway and Sweden. The company's power plants produce a total of about 2 terawatt-hours.

Before the new year, the company submitted a request to develop 16 more power plants with an annual production of 0.165 terawatt-hours.

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Hanisi Anenih

Hanisi Anenih

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