The government has an argument for offshore wind that is more important than anything else

The government has an argument for offshore wind that is more important than anything else

State Council Office (Netavisen): Oil and Energy Minister Terje Ösland (AP) sits down with Netavisen after a tumultuous few days.

Let’s talk about why Norway has to pay tens of billions in subsidies to build one of the most expensive forms of electricity generation. A type of product that warns of the effects of NVE.

At the same time, the government did not even allow research on nuclear power. On the other hand, Norwegians are very negative about sea breeze.

– Now I will try to explain why it is important, he says, and leans forward.

Bad news in a row

The background is not particularly happy: the government originally thought that Norway’s first offshore wind project would be profitable without subsidies. Now they are ready to put NOK 23 billion into the pot.

The huge sum did not convince the industry: last week several heavyweights pulled back from the build-up war, which It is uncertain whether there will be enough people to start the auction.

And then we got the answer to why: the UK is sending subsidies skyward in the offshore wind after experiencing a lack of interest in their previous bid.

The British are now willing to offer offshore wind generators guaranteed electricity prices of up to NOK 3 per kWh for several years.

It is much more expensive than the more expensive nuclear power plants. A scandalous project in Finland could cost as little as one kroner per kWh. NVE Estimating the cost of nuclear power Usually 78 øre.

Recently, NVE released a major report in which they strongly warned that not only is offshore wind more expensive, but it also leads to higher grid rents because you need more backup.

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Severe warning about electricity in Norway

There is a very important argument

Nevertheless, Ausland is unwavering in his belief in sea breezes:

– Norwegian offshore wind has three dimensions: more renewable energy and the potential to reduce greenhouse gas emissions. But the most important thing is that we are building a new foundation for the Norwegian supplier industry, which helps it take a place in the world market, says Ausland.

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While you have to spend a lot of money first on new electricity generation, Norway wants to get something other than electricity:

– If we are going to expand On the Norwegian continental shelf, this is an investment that, according to Sintep’s rough calculations, amounts to NOK 1,000 billion. That is the domestic market. It is incredibly interesting in terms of floating technology, composites, development of platforms and high voltage connections (HVDC). Ibel A good example of that, he says.

Or put another way: Norway knows a lot about pulling power cables to large installations far out at sea.

And, he points out, other countries need electricity: Europeans The North Sea market alone would be 10 times that. No one knows how big it will be globally, but:

– It’s going to be huge! This creates a huge future opportunity for the Norwegian supplier industry, says Ausland.

– Offshore wind investment will provide an enormous opportunity to sustain the supplier industry in Norway. With the expertise, experience and technology we have developed over 50 years, it is a good bridge between the oil and gas industry and offshore wind, especially floating wind.

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– Why is it so important for the government to stop us?

There is no Norwegian industry in nuclear power

The Minister of State then accepts the job as the person asking the questions:

– So let me ask you: What is the benefit of developing nuclear power in Norway?

He knows the answer to the rhetorical question: Nobody wants Norway to create Nuclear power should only buy off-the-shelf solutions from abroad.

– No development! There are no participating industries. There are some financial institutions to bring nuclear power plants to Norway. Someone is setting it up – foreign companies – and then there may be some operators who are here. But there is no industrial dimension in nuclear investment, says the minister.

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In the total account for a country, it is inherently important whether money goes to industrial development with jobs and exports, or goes out of the country to “buy goods.”

Price explosion – here and there

But to export a product, Norway must offer a price the world is willing to pay. With NOK 3 per kWh, the export market is limited.

On the other hand, Ausland refuses to be part of England’s new grants:

– I don’t agree with the NOK 3 price. I think the price is good under one kroner. But we have to industrialize, we have to scale, we have to start, so that the costs will come down,” says the optimistic minister.

– Norwegian expertise, with Norwegian engineers understanding design, assembly and offshore operations, will help Norwegian businesses reduce the costs of floating offshore wind. Ausland says quantum leaps can be taken to cut costs.

He also points out that it’s not just offshore wind that’s expensive.

– What we are seeing now in onshore wind is that many input factors have increased significantly in price. Ausland says turbines, cables, steel and more are expensive.

– In nuclear power, you have to use steel, you have to use clay that goes around, you need cables to carry the electrons. So be it an industrial project, offshore wind or nuclear the cost picture is demanding. “I don’t know if Norsk Kjernekraft got the option of cheap cable, cheap solutions or cheap steel,” he asks rhetorically.

The door to nuclear energy remains open

Nevertheless, the minister did not close the door on nuclear power, which has sustainable generation and high surplus heat:

– I am not saying that I reject nuclear power in the future, because nuclear power is being developed. Small, modular nuclear power plants (SMR) could come. He says with anticipation that they will be able to produce at a slightly lower cost.

He envisions nuclear power plants Primarily to be directly connected to industries that require the same stable electricity.

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– but he says that 300 MW of consumption can match the investment.

This is the type that Norwegian Nuclear Power wants to build in Norway. But Ausland has observed precisely this too Small Nuclear power plant.

– That’s a lot Small Power plant. 300 MW is not much. If you set something like this up in Greenland, he says, it wouldn’t be enough to cover the 550 megawatts Yara needs there.

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Do you need nuclear research to develop?

The Research Council’s exclusion of nuclear energy from a major call for environmentally friendly energy (FME) research has caused quite a stir. FRP tried in Storting to remove this restriction, without success.

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Nuclear research to begin in Norway

– Why don’t you want to research it?

– Because we direct our research efforts towards areas where we have industry experience and industry future opportunities. You say to yourself that there is no industrial future for nuclear power development in Norway. “There are no suppliers, no one who knows how we develop that capability,” he says.

He points out that Norway’s opportunities relate to offshore wind, hydropower and the oil and gas sector. Plans are being made for massive investment in “blue” hydrogen production with carbon capture, among others.

– So you are open to the fact that if someone wants to build nuclear power in Norway without doing research first, it can be built?

– We have a lot of nuclear expertise such as basic expertise and related research. Then we will now have a message from Norsk Kernecraft about a possible establishment in one location. Of course we have to deal with it seriously. my happiness Then we have to carry out studies on how this fits into the Norwegian power system. Will it be positive or negative? Will it contribute to price increases or lower prices?

Joshi Akinjide

Joshi Akinjide

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