1. No category

NORDIC ENERGY SUMMIT
Christian Rynning-Tønnesen
19 March 2015
Strong energy demand growth outside Europe
Electricity demand (indexed in 2000)
240
220
Peru
India
Turkey
Brazil
Chile
200
180
160
140
120
Nordic
100
Germany
80
2000

2
2004
2008
2012
Emerging markets have grown 70-100% during the last decade while European markets were roughly
flat
The world needs a climate agreement
Global temperature
↑ 0.68 ◦C
Carbon dioxide
Arctic sea ice
↑ 399.73
metric
↓-258 billon
tons per year
↓-13.3 per% change
decade
↑ 3.18 mm per year ↓ 1.5
3
ppm
Land ice
Picture: NASA - Source for vital signs: www.climate/nasa.gov
Sea level
Forest cover
million sq. km
EU Energy union
4

Continued decentralisation

Continued RES support

Market re-design

Well functioning ETS
Massive cost reduction in solar PV
Levelised cost of energy for PV in Germany
0,50
€/kWh
0,40
Power price for
consumers in Germany
0,30
0,20
0,10
Whole sale power price
0,00
2006
5
2008
2010
2012
2014
2016
2018
2020
Source: German Solar Industry Association / Bloomberg New Energy Finance
2022
2024
2026
2028
2030
Renewables are replacing fossil fuel in EU in 2014
New
10000
Decommissioned
5000
MW
0
-5000
-10000
Wind
6
Source: EWEA
PV
Gas
Coal
Biomass
Hydro
Waste
Fuel oil
Nuclear
Coal-fired capacity will be significantly reduced
Coal
2015
Closure
2025
7
Source: Statkraft
250
-29%
Hydro and wind is most competitive in the
Nordic market
Production cost in Norway (2014)
1,8
1,6
LCOE (NOK/ kWh)
1,4
1,2
1,0
0,8
0,6
0,4
0,2
0,0
Vannkraft
Hydro
Vindkraft
- land
Wind
- onshore
Opex
CapexInvesteringskostnader
Opex
8
Kullkraft
Coal
Kjernekraft
Nuclear
Gasskraft
Gas
Driftsvedlikeholdskostnader
Fuelog
and
emission costs
Source: NVE, report 2/2015, «Kostnader i Energisektoren»
Vindkraft
hav
Biokraft
Wind – -offshore
Bio
Brensels- og utslippskostnader
Sol PV
Solar
PV
Projected production mix
Yearly production in TWh
Renewables
2005
EU reference year
Nuclear
Germany
UK
Sweden
Norway
Fossil
Renewables
2025
Nuclear
Germany
9
UK
Sweden
Norway
Fossl
Statkraft overview
100 %
owned by the
Norwegian state
Sweden
1 511 MW
Installed capacity
18 200 MW1
Power production
A- / Baa1
56 TWh
from S&P and
Moody’s
99% renewable
energy
Panama
(project)
UK
243 MW
Germany
2 692 MW
Nepal 23 MW
Laos 50 MW
Albania
(project)
Peru
182 MW
(+ project)
Chile
105 MW
STATKRAFT
SN POWER/
AGUA IMARA
1Statkraft’s
Norway
12 988 MW
direct and indirect ownership in power plants
India
91 MW
Turkey
20 MW
(+ projects)
Brazil
101 MW
Zambia
6 MW
Philippines
146 MW
Strategic focus areas
European
Flexible
Generation
11
Market
operations
International
Hydropower
Wind
District
Heating
Innovation
Majority ownership in Desenvix, Brazil
74 MW Monjolinho

Large and growing power market

The acquisition provides cash flow and new greenfield pipeline for
the P&C unit

10 hydro power plants, 2 windfarms, transmission assets
12
Acquisition of majority in Pilmaiquén ,Chile
52 MW Rucatayo

Stable regulatory business environment with a low FX risk

The acquisition provides cash flow and new greenfield pipeline for
the P&C unit

Operating plant is 100% merchant allowing commercial flexibility

Located in an area with highly stable hydrologic history, providing
diversification to existing assets
13
Kjøllefjord
Statkraft’s onshore wind power
Hitra
Smøla
Under construction / operations
Stamåsen
Mörttjärnberget
Björkhöjden
Ögonfägnaden
Concessions / Under development
Baillie
Berry Burn
Andershaw
Alltwalis
14
Em
Tollarpabjär
Advancing to lead offshore developer
Offshore 150 km
Statkraft’s
capabilities
Offshore 50 km
Offshore 40 km
Offshore 20 km
Onshore
Onshore wind
Developer
10 projects in
UK, Sweden
and Norway
Sheringham Shoal
Partner in
construction
Operator in O&M
phase
- 317 MW
Dudgeon
- Integrated
partner in
development
and
construction
Triton Knoll
- Manager in
development
and
construction
phases
Dogger Bank
- 6 projects in
total
- Operator on
one of the first
four projects
- Up to
7200MW
- Up to 900MW
- 402MW
Project complexity
15
Biofuel development with Södra Cell

Ambition: Full scale commercial biofuel production
16
Statkraft has experienced strong growth
Equity development
+ NOK 29
billion in net
dividend
NOK 88 billion
NOK 75,6
billion equity
increase
NOK 12,4 billion
1992

17
Robust financial situation and ambitious capex program:
NOK 61 billion from 2014-2018
2014
Alternative financing models

Examples of alternative financing structures:
-
Statkraft International Hydro Invest
SN Power
UK onshore wind
UK offshore wind
67 %
50%
51 %
40 %

Statkraft’s ambition: Be the industrial partner in order to leverage key
industrial skills within O&M, energy management and trading operations

Partners also in new projects
18
Wind power in mid-Norway
Snillfjord
Fosen
Fosen Vind AS
19
MW
Storheia
250
Roan
240
Kvenndalsfjellet
110
Total, min
600
SAE Vind AS
Fosen
MW
Geitfjellet
200
Hitra 2
100
Remmafjellet
100
Total, min
400
Snillfjord
Opportunity for external investors in Fosen Vind AS
Statkraft
≥ 50,1 %
Agder Energi
≤ 20,9%
NTE
≤ 14,5%
Trønder Energi
≤ 14,5%
Investor
15-40 %
Service agreement
Fosen Vind AS
Roan
300 MW*
20
Kvenndalsfjellet
120 MW*
Storheia
220 MW*
* Production capacity in the concession
Summary
21

The climate challenge is increasingly
influencing energy policies

European energy transition from fossil to
renewable energy

Statkraft has a solid financial track record

Possibilities for investors to co-invest with
Statkraft in Fosen Vind AS and other projects
THANK YOU
www.statkraft.com