Statkraft, Deutsche Bahn | The Statkraft agreement with Deutsche Bahn does not contribute to a weakening of the balance of power in Norway

There is no actual delivery of hydroelectric power from the Mågeli power plant to the German railways.

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stimulate increased investment

In 2021, Deutsche Bahn entered into a fixed-rate agreement with Germany’s Statkraft to purchase electricity supplied from German power generation over a ten-year period starting in 2023.

In addition to the fixed-price agreement, Deutsche Bahn also purchased a guarantee of origin from production in Mågeli, which certifies that the same volume they receive from Germany’s electricity grid is being produced renewable at Mågeli. A guarantee of origin is the guarantee that a certain amount of renewable energy is produced at a particular power plant, but that does not mean that physical electricity is delivered from there.

Unless you’re physically connected to the production plant, you can’t tell which power plant(s) the electricity you’re using comes from. Since an electron cannot be traced in the power cable, power and certificates are sold separately.

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One certificate corresponds to 1 MWh of production, and is recorded so that one certificate can only be used once. Certification is an EU approved method where you as a consumer can prove that your electricity consumption corresponds to a quantity of renewable origin. The purchase of guarantees of origin is voluntary and more common on the continent than in Norway, but it is becoming more prevalent here as well.

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The scheme aims to stimulate increased investment in renewable energy by ensuring that the money the company pays for guarantees of origin goes to the product. In this way, companies can exercise consumer power and contribute to the development of more renewable energy.

There is no “suction pipe” at the Mågeli . power plant

Thus, Deutsche Bahn does not have a “suction pipe” at the Magili power plant. The energy produced at Mågeli is fed into the power grid with production from other power plants.

This will also be the case after the start of deliveries to Deutsche Bahn in 2023. On the other hand, Deutsche Bahn bought guarantees of origin specifically from the Mågeli power plant, which is why it states that its power comes from there though Guarantees of origin are a financial agreement, not a physical agreement.

It is Statkraft in Germany that has entered into an agreement with Deutsche Bahn. Electricity is purchased on the German market and comes from the German electricity grid.

Read more of the Norwegian discussion here

Thus, the Statkraft agreement with Deutsche Bahn does not involve any actual export of energy from Norway to Germany, and therefore does not contribute to a weakening of the balance of power in Norway.