The new 420 kV Sima-Samnanger power line came online in December 2013. The project was completed on schedule and in accordance with the budget stipulated at the time of the final investment decision.
The power line is important both for security of supply to large parts of Hordaland in western Norway and for facilitating development of new renewable energy in the area.
In cold and dry winters, the electricity supply to parts of Hordaland and Bergen has been very vulnerable. In this situation, a single fault on one of the power lines could have resulted in extensive, long-term power outages. The new Sima-Samnanger interconnector has increased security of supply in the area.
Varangerbotn-Skogfoss in operation
The new 132 kV power line between Varangerbotn and Skogfoss in northern Norway entered service in October 2013, and the high-voltage facilities in Varangerbotn and Skogfoss have been modified. The project is scheduled for commissioning in late summer 2014, as some minor substation work still remains. Construction has been ongoing since March 2010, and several local subcontractors have been involved.
The power line in the county of Finnmark is part of the next generation main grid, and will increase security of supply in eastern Finnmark. This is particularly significant for the Kirkenes area, which is one of the future key growth centres for industry in northern Norway.
New subsea cables in Ytre Oslofjord
In November 2013, the Ytre Oslofjord facility entered operation with six of nine new cables. The final three oil cables will be installed in 2014. The subsea interconnector is important for security of supply in eastern Norway, and is an update of a facility dating from 1981. The new subsea cable facility in Ytre Oslofjord is part of the 420 kV interconnector Rød-Hasle.
Final licence awarded for Ofoten-Balsfjord
In August, Statnett received a final licence for the construction of a new 420 kV power line from Ofoten to Balsfjord. The power line will be 150 kilometres long and is part of a planned interconnector to Skaidi/Hammerfest. The power line will improve security of supply in northern Norway and facilitate increased value creation in the region. Construction is scheduled to start in spring 2014.
The new power line will eliminate a bottleneck in the main grid between Nordland and Troms, and is vital for securing a reliable supply of electricity north of Ofoten. We are already now experiencing periods with reduced grid security. The reinforcement is also necessary because of the anticipated increase in consumption and plans for greater industrial activity in northern Norway.
Statnett has applied for licences for two international interconnectors
Statnett has signed partnership agreements for the construction of international interconnectors to both Germany and the UK, and submitted an application for a foreign trade licence for both projects to the Ministry of Petroleum and Energy in May 2013. Statnett has been working on the two cable projects for several years and the projects are scheduled for completion in 2018 and 2020 respectively.
Interconnector to Germany
NordLink, owned 50-50 by Statnett and the German company TenneT and KfW, will link the Norwegian and German energy systems through a 1400 MW subsea cable. On the German side, the parties have entered into an agreement with the regional authorities in the German federal state Schleswig-Holstein relating to a speedy implementation of the licensing process for a converter facility, cable route and subsea cable within the 12-mile boundary from the German coastline.
Interconnector to the UK
The North Sea Network (NSN) cable project will be developed and owned 50-50 by Statnett and the British company National Grid. The subsea cable will have a capacity of 1400 MW, and will be installed between Kvilldal in the Norwegian county of Rogaland and Blyth in the UK. In 2013, the companies entered into a joint project agreement, and received a renewed facility licence from the Norwegian authorities. The cable will be the longest subsea power cable in the world.
New progress plan for Ørskog-Sogndal
The planned 420 kV power line between Ørskog and Sogndal is essential for security of supply to central Norway and for realisation of new renewable energy production in Sogn og Fjordane.
Statnett aimed to complete the Ørskog-Sogndal interconnector by the end of 2015. However, the project has been delayed as Statnett has not yet received licences for all sections of the route. Statnett has adopted a new schedule, where the Ørskog-Høyanger section will be commissioned over the course of 2015, and the Høyanger-Sogndal section will be completed in 2016.
The project will continuously facilitate realisation of renewable energy projects as the power line is being commissioned from the north and southward.
New head office
In March 2013, Statnett's new head office moved from Huseby to Nydalen in Oslo. In May, Statnett assumed ownership of its new head office at 33 Nydalen Allé by exercising the purchase option negotiated in connection with the initial lease agreement with Avantor.
The main office is a new building with a floor space of 22 000 m2, housing 800 workstations. The reason for the move was a need for more space and more flexible premises as a result of increased activity. The new building is an energy class A office building.
In 2013, Statnett and Lyse Sentralnett AS signed an agreement for Statnett's acquisition of a 50 percent shareholding in Lyse Sentralnett AS. The transaction was carried out on 3 February 2014. The parties have agreed that Statnett will have controlling influence in Lyse Sentralnett AS.
Lyse Sentralnett owns the main grid facilities in the Lyse area. As part of improving security of supply to the Stavanger area, Lyse Sentralnett has applied for a licence for a new 420 kV power line between Lyse and Støleheia. Statnett will be responsible for the construction of the new power line.
Statnett has an option to acquire another 25 percent of Lyse Sentralnett once a licence has been granted for Lysebotn-Støleheia and the remaining 25 percent upon completion of the line.
2013 Grid Development Plan
The Grid Development Plan (NUP) shows how Statnett will realise its plans for the next generation main grid. Statnett confirms investment plans of NOK 5-7 billion annually in new grid capacity in the next decades. The planning horizon is 20 years, and there are specific plans for construction of power lines and substations in the first decade.
Injection of equity
On 2 January 2014, Statnett received NOK 3.25 billion in equity. This was decided at an extraordinary enterprise meeting on 17 December 2013. The Fiscal State Budget for 2014 assumes that no dividend will be paid for the 2014 fiscal year, in accordance with Statnett's request. Furthermore, dividends of 25 percent will be disbursed in 2015-2017, which is half of the owner's long-term dividend policy. The equity injection contributes to securing the development of the next generation main grid.