Windpower Monthly rating 4/5
Our rating is based on a combination of project pipeline, political and policy support, investor confidence and structural readiness of the country in terms of grid infrastructure, permitting process and local supply chain.
Forecast of installed and operating wind power capacity based on the latest statisitics and measured against the Windpower Intelligence database.
The Norwegian government supports the expansion of wind power. A joint Norwegian-Swedish certificate market was established to incentivise renewable electricity generation, with projects that are finalised before the end of December 2021 eligible to receive certificates for 15 years. Over the same period, end-users are obliged to purchase certificates, such that renewables producers receive payment that exceeds the market electricity price.
Norway’s electricity supply is nearly 100% based on renewable sources — dominated by hydro with wind making up less than 2% share in 2016. The country also has a significant production surplus. However, with export capacity limited, at least in the short term, this makes for low electricity prices.
In the longer term, an increase in interconnector capacity should see higher prices in the Norwegian market and provided new wind farms benefit from the certificate market, investment in wind should be profitable. There has also been increased interest from foreign investors.
The Norwegian grid system is currently being upgraded and further developed in preparation for new generation capacity, while new interconnectors are also required.The Norwegian Water and Energy Directorate is also working to speed up the application process.
Norway's economy and wealth is built on the oil and gas sector, making it vulnerable to falling oil prices and a global shift from fossil fuels to renewable energies. Windpower Monthly looks at how state-owned Equinor and Statkraft are responding -- are they truly diversifying or just paying lip service?
NORWAY/UK:The first commercial floating wind project is close to reality with the turbines mounted on their foundations in Norway and the tugboats ready for the voyage to Scotland.
DENMARK: Virtually one third (33.2%) of Denmark's electricity came from wind during 2013, and the country is well on course to hit its target of reaching 50% by the end of the decade.
NORWAY: Although the first year of Norway's new incentive scheme for renewables saw only two turbines built, the market is very active and this should continue into 2013, with the first projects coming online by early 2014.
EUROPE: Wind power developers in Europe are looking northwards and increasingly exploring the east when choosing sites for future wind farms, while southern Europe is off the radar of most market participants.
Statkraft will not pursue wind power development in its native Norway following completion of the 1GW-plus Fosen and two other licensed wind farms, citing profitability concerns.
Developer Norsk Vind Energi (NVE) has submitted plans for a 1.5GW wind farm in western Norway that could be the largest project in Europe.
Statkraft's wind power business returned to profit last year, boosted by new operational capacity, and higher power and tradable electricity certificates.
The Swedish Energy Agency's (SEA) proposal to run the country's green certificate system until the end of 2030 could drive down prices and bankrupt early investors, the country's wind industry body has warned.
Subsea connector and distribution system supplier Unitech Offshore will take over ownership and operation of the world's first large-scale floating wind turbine from the start of February.