A mAgAzine for people in StAtkrAft I no. 3 2010

TheCeOleadsThewayFrOm pigeOnhunTer TO FriendOF The ClimaTemeet environmental bossTormod schei

Contains450 000little fish

Tending TOThe waTerMarilyn Marskar makes surethe hydropower is clean

2 statkraft

This is a very exciting autumn for Statkraft.Just before summer, we presented a more

targeted strategy which will free up resourcesand equity for our core areas. It will also ensurecontinued growth adjusted to our financialframework.Hydropower will remain as the basis of our

operations, both in Norway and internationally.We will further develop the flexibility inherent inhydropower and gas power. We will also con-tinue our wind energy initiatives in the Nordiccountries and in the UK, as well as our effortsin district heating, but with reduced invest-ments. We will maintain our major industrialownership in Norwegian regional companies.This autumn, we will carry on with our efforts

to make this strategy even more specific. Thevarious business and staff areas will continue

to refine their strategies which also becomepart of the overall company strategy and workout their organisational details.Large parts of the organisational structure

have been presented in recent weeks. In ad-dition, it is our goal to simplify and improve themanagement systems and reporting structures.This will strengthen our confidence that we

have selected the cor-rect strategy to growwithin our focus areas,and develop Statkraftas a competitivecompany.

Christianrynning-tønnesenPresident and CEO

a competitive company

Fotodagspant

Pages14 To

19 areover-

flowing wiT

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PhoTos!

editorial

3people & power

no 3.2010

Contents

editor-in-chief: hanne aaberg

editor: Christer giljechrister.gilje@statkraft.com

editorial staff: Birger Baug, irenemacCallum, lars magnus günther,anne joeken, linn Bakke, helena ainaZissis, gunilla lundén

design and production:red kommunikasjon

cover: marilyn marskar, environmentaladviser, pg

cover photo by: ellen johanne jarli

Print: rk grafisk as

circulation: 5000

feedback and tips aregreatly appreciated:pp@statkraft.com

04 The CEO sharpens his pencilChristian Rynning-Tønnesen leads the way.

06 The instrumental friendRecently hired Executive Vice PresidentSteinar Bysveen loves the piano, golfclubs and management.

08 Cutting powerIn four years all of Statkraft’s Norwegianfacilities will use 35 percent less energy.

10 New look caused dancing feverSN Power is changing its look, and theemployees notice the difference.

12 An orderly dayWith Emendo, nothing ends up inthe big, black beyond..

14 Cultivation daysThe future of the river is in the net cage.

22 The wind is in the willows …… the water and on land. Water flowregulation is not just a piece of cake.

32 Synchronised watchesEveryone was dressed when CDMemployees from around the worldfinally got to meet.

34 Dove hunter turnedclimate friendDid you know that VP of Environment Tor-mod Schei has sung at Royal Albert Hall?

38 ”Disaster” strikes in GermanyFull-on action for 240 employees.

4 statkraft

“This is not a major departure from what has been, butrather a more targeted and more clearly communicatedstrategy,” says Christian Rynning-Tønnesen

Current affairs

5people & power

strategy

what are the most importantaspects of the changes tothe strategy?“The most important aspectof focusing the strategy is

that this will free up resources across theorganisation, so we can go full speed aheadwith the projects inside the strategy. We arein a dialogue with the owner on dividendsand equity, and the outcome of this dialoguewill define our financial framework. Until thisreview has been completed, the board andcorporate management will operate withinthe current financial framework.”

how necessary was it for statkraft toprioritise and define its core operations?“It was natural to make an assessment of ourpriorities at the time when I joined the com-pany and changes were made in the corporatemanagement. This is not a major departure fromwhat has been, but rather a more focused andmore clearly communicated strategy.”

did you have any doubts as to removingentire technologies?“Of course, we discussed how wise it would beto exit a technology investment altogether ratherthan down-scale. In terms of solar power, we de-cided it was best to exit that technology and thusfree up resources and capital for other areas. Interms of wind energy and district heating on theother hand, we decided to maintain a significantinvolvement, but with reduced investment plansfor the next few years.”

what is your view of the company’sinnovation section in the time ahead?“We will have further development within flex-ible hydropower and gas power, international

hydropower, wind energy and district heating.The main focus of our innovation initiatives willbe to support these areas. But there will also beroom for a certain amount of innovation beyondthis, for instance within osmotic power. Due tothe nature of innovation, the framework can’t betoo tight. What defines innovation is the ability tocome up with solutions we didn’t have when westarted, and that you can’t predefine everything.”

Can sn Power-boss øistein andresenentry into the corporate managementbe interpreted as a sign that sn Power’soperations will be more integrated?“Yes, SN Power’s operations have always beenimportant to Statkraft, but the fact that we nowown 60 per cent of the company and have theopportunity to buy still more and the appointmentof Andresen to the executive management aresignals that Statkraft wants to keep internationalhydropower developments close to the group.Still, it is important that the activities continue tobe managed and operated independently, so the

enterprise is given the opportunity to develop inparts of the world outside the parent company’score areas. It is our ambition to be able to exploitsynergies within engineering and HSE.”

in norway, there is a political divide ongas power. why is it then right to pursueinitiatives for gas power on the continent?“In Germany, gas power is regarded as oneof the most eco-friendly alternatives in powergeneration, and Norway is also one of the largestgas suppliers to Europe. From this perspective,it is only natural for Statkraft to be involved inEuro-pean gas power. We have considered thevalue of having flexible gas power available innorthern Europe against other Group initiatives,and our conclusion is that we wish to keep thisarea and further develop both flexible hydro-power and gas power as part of our core activity.”

when will we know more about thespecific changes to the organisationas a result of the changed strategy?“We recently presented the organisationalstructure and appointed leaders for variousareas under the corporate management, andthat in itself has provided a great deal ofclarification. In the months ahead, there willbe a process in each business and staff areato define their plans and how to best utilisethe resources. Additionally, here at the headoffice, it will be particularly important to definethe roles and tasks of the staff in the Group.”

for you, what is the most importantthing to accomplish this autumn?"That would be to complete the review of theorganisation, so that all business areas and staffhave clearly defined roles, and that all employeesknow the goals they are working towards." ●

just before the summer, president and Ceo Christian rynning-tønnesen presented a new and more focused strategy. he nowtalks about the background for the changes – and the directionin which the corporate management wants to take the company.

text: Christer gilje photo: hans Fredrik asBjørnsen

to lead the waypresident and Ceo

FacTsstatkraft’s new, targeted strategy was

presented on 18 june. it calls for greater emphasison the group’s core expertise within flexible andrenewable energy generation, and the companyhas defined the following focus areas:

flexible energy generation and marketoperations in norway and Western europe.

international hydropower

wind energy in norway, sweden and the uk

Focused growth within district heating innorway and consolidation of the operations insweden

statkraft will continue its role as an industrialowner of regional companies in norway.

6 statkraft

øistein andresen

Civil engineer (electricity). Formermanaging director of sn power.

areas oF responsiBility:sn power, southeast europe, interna-tional hydropower.

the Best thing aBout statkraFt: thecompany is leadingwithin eco-friendlyenergy, has a global growth strategy andcore values that i can identifywith - and it

is inspiring to have somanygood colleagues.

motto som leder: Fokuser påmulighetene, ikke problemene.

New faces in corporate managementsteinar bysveenCivil engineer and businesseconomist. Former presi-dent of energy norway.

areas oF responsiBility:production and industrialownership.

the Best thing aBoutstatkraFt: the opportuni-

ties, the expertise and all the nice people.

leadership motto: there is no limit to whatyou can’t achieve when you don’t want to.

hilde bakkenCivil engineer in petroleum, has beenwith statkraft since 2000.

areas oF responsiBility: hse, hr,corporate social responsibility, com-munications, corporate audits.

the Best thing aBout statkraFt:our highly competent employees andour plans, which we can be proud of.

leadership motto: thorough and systematic work willyield results over time. i hope my actions will be my mostimportant leadership tool. (see separate interview withhilde bakken in the portal.)

“My body needs me to play golf,” says new ExecutiveVice President in Statkraft, Steinar Bysveen

Current affairs

7people & power

new exeCutive management

who heads what?the managers on the level below corporatemanagement were introduced in August. Much ofthe organisational structure was also introducedat the same time, and it will be further developeduntil 30 November. The work on the group strategy,the group management process and reporting anda comprehensive HR process will run parallel withthis. You can follow the processes through theCEO’s information meetings and in the portal.

Do you want to see who heads what? Go to theAbout us section on the intranet.

New on the boardsvein aaser has been elected the new chairmanof the board in Statkraft AS, replacing Arvid Grun-dekjøn. Aaser is a partner in the consultancy firmInFuture, and chairman of the board for the NordicSki World Cup 2011 and the National Museum. Heis a former CEO of Den Norske Bank, DnB NOR,Nycomed, Storebrand insurance, NORA food pro-ducts, as well as president of the Confederation ofNorwegian Enterprise (NHO) from 1992 to 1994.

Inge Ryan and Silvija Seres were elected newmembers of the board, replacing Hilde M. Tonneand Bertil (Pertti) Tiusanen.Svein Aaser

how are you today?” Steinar Bysveenasks as I enter his office.”Thanks, I’m fine,” I reply.”I’m under quite a bit of stress,”

he says with outstretched arms.”There’s so much I need to learn!”But I quickly understand that this isn’t a com-

plaint. Bysveen has indeed landed his dreamjob. After 25 years in the energy industry, andseven years as president of the industry associa-tion Energy Norway, he began to think about hisnext move, and at the top of his wish list wasStatkraft. Around Easter, he told ChristianRynning-Tønnesen about his thoughts, and a fewmonths later, his dream came true. And this iswhere we return to the busy work day. It may behectic, but it is also happy.”There are so many nice and highly competent

people here!” says Bysveen.”When I talk to people and when I read on the

intranet about all the exciting things we do inStatkraft, I think to myself that this is somethingI would love to tell the entire world!”

Flexibility is the solutionHis drive to tell the world comes naturally. Aspresident of the energy industry’s own association,he worked to convince politicians, media andthe general public how Norway’s energy shouldbe managed. He will now be managing much ofStatkraft’s production. And he has already setsome clear goals for the future.

“We need to develop more renewable energy,and in many countries, this means wind energy,”he says. “But what will we do when there’s nowind? Or when the wind is blowing, but con-sumption is low? The solution is flexible energyproduction. Therefore, one of my most importanttasks will be to increase the effect we achieve inhydropower, through pumped storage energy inNorway and gas power in Germany.”Bysveen is focused on explaining this need to

the general public. The big debate this summeron transmission cables in Hardanger was anexample of influencing attitudes towards energydevelopment.“There has been a gradual development since

the time when developing hydropower and thepower grid equalled building the nation. It is stillimportant that we have the general public onour side,“ he stresses.

a complex fellowCommunicating with the public and the au-thorities has been very important for Bysveenthroughout much of his career, but he also hassolid technical and economic expertise. He hasan engineering degree and a degree in businesseconomics, and his energy career started inSaga Petroleum.“I learned a lot about project execution, the

ownership role and business developmentduring my time there,” he says.” I also worked alot with gas. I continued working with gas when

I worked to develop gas power in IndustrikraftMidt-Norge until I started in Energy Norway,where regulatory work is very important.”“The energy industry is about technology, eco-

nomics and politics, all at the same time. Andit is this that makes it such an interesting sector.”Although Bysveen practically has the energy

business in his blood, he is not an industry geek.He tries to get a round of golf in every weekendfor example.“It is a physical need,” he explains. “And when

my wife looks at my body, she agrees that theneed is real.”When he is not at the golf course, he is trying

to befriend musical instruments.“I have a background from marching bands

and big bands, and I do still play a bit, but mostlyfor my own amusement. The family claims itis just myself I amuse, but I’m not giving up. Istarted taking piano lessons when I turned 40,and the hope lingers that the piano will be myfriend one day.”But before that happens, there are plenty of

other friends to make.“I will meet a lot of Statkraft employees this

autumn, and travel to the various units I’mresponsible for, in order to get to know thembetter. I will be in charge of many very differentparts of the company, both in terms of size andtasks, but my hope is that I’ll manage to adjustto the various needs, inspire employees anddefine the road ahead.” ●

new exeCutive management:

energetic bosssteinar Bysveen is mostly smiles when you meet him.perhaps because he has landed his dream job?text: Christer gilje photo: erik thallaug

8 statkraft

statkraft’s Norwegian facilities,including power plants, officebuildings and stock fish facili-ties, consume a total of about100 GWh of electricity annually.A study of the facilities carried

out by Norconsult, shows that it is possible tocut energy consumption by 35 GWh annually bymaking profitable investments in managementsystems, operations monitoring and energymanagement in connection with lighting, venti-lation and heating.The study forms the basis for the project

”Energy Efficiency in our own facilities,” whichis a part of PG’s ongoing work to improve tech-nology and processes in order to achieve envi-ronmental benefits and efficient energy use.

No more free energy”Since the early days, our own energy has beenregarded as cost free and was carried as a lossat the power stations. But increasing focus onenergy efficiency and rising energy prices havealso put a price on this consumption and createda potential for profitable investments. In total,we are looking at investing NOK 86 million until2014. Enova will contribute NOK 14.6 million of

Cutting power atthe power plantsBy 2014, all of statkraft’s norwegian buildings will use35 per cent less energy than they do today due to energyefficiency measures. in addition to saving both energyand costs, these energy efficiency measures will make apositive contribution to the climate, by freeing up moreclean energy.text: lars magnus günther

Current affairsFrom the Nedre Røssåga power plant (Archive photo)

9people & power

this, ensuring that the project’s profitability cancompete with other investments in the group,”says project manager Leif Larsen.Phase 1 of the project got under way this

autumn with installation of new equipment at theNore, Aure and Rana Power Plant Group, as wellas staff training. The first stage of the projectwill run until the summer and is carried out inpartnership with Norconsult as consultants andYIT as the installing contractor. The plan is thento carry out similar investments at all remainingNorwegian facilities by 2014.Leif Larsen, himself the former power plant

manager at Aura, has often thought that some-thing should be done about the energy use atour facilities, but until now, focus has been onimprovements to production. He now looks for-ward to getting to work on the energy efficiencyof the buildings themselves.

No one will feel cold“It is exciting to work on this and confirm as-sumptions regarding cost savings. At the sametime, it is really great to experience the enthu-siasm the power plant managers have when wepresent the project,” Larsen says.He stresses that no one will feel cold or work in

the dark due to the measures.“Energy efficiency will not come at the expense

of either comfort or the working environment.Quite the opposite, our employees will find thatlighting, heating and ventilation will all be betteradjusted to the work at hand.”Installing company YIT is also very pleased

with Statkraft leading the way and taking on thischallenge.“It is great to see Statkraft going for build-

ing automation, not just improvements to theproduction facilities, and that it is done for allof Norway,” project manager Tord Solvoll of theinstallation contractor YIT, says. He believesStatkraft will be successful in this highly ambi-tious project.

Potential for improvementThe innovation department has been a key

internal contributor to the project.“The energy efficiency project has change

as one of its success criteria. The goal requiresthat local expertise and knowledge of the facili-ties come together with new technical solutionsand practical implementation. Statkraft hasthe potential to improve both processes andsystems in this project, as well as making acontribution to an improved result for our coreactivity," says innovation advisor Hege Brendeof Statkraft.She is involved in the project group with a

special responsibility for following up commun-ication and training of the employees, as wellas assisting in project coordination for Statkraftwithin these areas.“The potential in energy efficiency boils down

to behaviour and energy awareness throughdaily, practical work,” she says. ●

kraFtkutt

“The project has a profitability that can competewith other investments in the Group,” says projectmanager Leif Larsen. (Photo: Leif Betten)

it is great to see statkraft going forbuilding automation, not just improve-

ments to the production facilities, andthat it is done for all of norway.

10 statkraft10 statkraft

our employees notice thedifference. People have

said that they now feel a partof a global company.– karin greve-isdahl, CommuniCations direCtor, sn poWer

the sheringhamshoal offshorewind farm willconsist of 88 windturbines. Withan annual energyproduction of anestimated 1.1 TWh.They will be able tosupply 220 000British householdswith electricity.

the norwegian Waterresources andenergy directoraterecommends thatthe norwegianministry of petroleum and energy grants statkraft alicense to construct the ringedalen power plant in oddamunicipality. the power plant will generate enoughelectricity for 2 700 households.

2700

Current affairs

11people & power

sn Power

11

”Image is important,” says Karin Greve-Isdahl,communications director in SN Power. ”The newprofile is fresher and looks more professional, atthe same time as it is attractive and user-friendly.It is all about how we want to look as a company.”

Global imageThe correct branding is important, also whenrecruiting new employees. SN Power wants tohave a more uniform look. The company hasnow incorporated the design elements used byStatkraft, and has the same look in all countrieswhere it is represented.“The employees have noticed the difference.

Many have said they now feel more part of aglobal company,” Greve-Isdahl says.Cecilia Torres of SN Power Peru, is one of those

who appreciates the new look.“It has been very demanding to make the change,

but we are really enthusiastic about it,” she says.“The new look is modern and innovative. It is

also friendly, with soft colours. I feel that I’mnow a part of a much greater company workingtowards a common goal. To invest in projects inrenewable energy and work towards sustainabledevelopment.”

Everything is changedThe new logo was launched for all the Peruvianemployees during a gathering at the end ofJuly. The office has now changed their businesscards, letterhead, templates, presentations andother information material. Banners have also

been made, which will be used during variousevents in the local communities where SN Poweroperates. Now the work starts to begin using thelogo and other parts of the new visual identity onfacades and signage at the facilities.Torres is very pleased that the different offices

were allowed to take part in the process.“We’ve been in a continuous dialogue with the

head office regarding the change, and providedinput and feedback on what the changes wouldentail for our communication work.”

Online freshnessOne of the changes that most people notice isthe new SN Power web pages. Experience fromthe launch of Statkraft’s new web pages lastyear was put to good use, but separate solutionshave also been developed. One of these is aglobe seen from a southern perspective, in otherwords, the countries where SN Power operates.Using the globe, web surfers can find out moreabout where the company has activities.The employees have also made a visible contri-

bution to the new web pages.“We worked very closely with the design

agency, but the different offices were also giventhe opportunity to give us feedback,” says Greve-Isdahl.“Specifically, we had more than 400 submis-

sions for a photo contest earlier this year. We’renow using many of these photos on the webpages, so the employees have really made agreat and visible contribution to the pages.” ●

sn power getsnew looksn power is getting a face lift, and that means thateverything from business cards to power plants signagewill be replaced.text: Christer gilje photo: andrea gianella

First foundation in placethe first wind energy generator foundation has been installed at Statkraft andStatoil’s offshore wind farm Sheringham Shoal, off the coast of Norfolk, England.The so-called monopole was put in place by the heavy-lift vessel “Svanen." A monopole

is a steel tube which forms the foundation for the wind energy generators. Then the transi-tion piece between the foundation and turbine tower was lifted into place. The work on thefoundation is carried out by the construction company MTHøjgaard.“Svanen” will carry on installing the 89 remaining foundations this autumn, before the

88 wind energy generators and the two transformer stations are installed in 2011.Each foundation consists of a tubular steel monopole, driven 32 to 36 metres into the

seabed, and a transition piece mounted on top. The monopoles are between 50 and 55metres long and weigh from 400 to 600 tonnes, while the transition pieces are 22 metreshigh and weigh about 200 tonnes each.

DanceD

for new

Design

12 statkraft

emendo is an electronic non-conformanceand improvement system which willbe implemented in all Statkraft units.Power Generation (PG) will start using

Emendo by 1 January. At the same time, theLight Bulb and JobTech will be phased out.

improved overviewAnders Mathisen, a specialist consultant forhealth and safety in PG, says there are two mainobjectives for using Emendo.“First of all, it is to ensure that each report

is handled in the best possible manner,” saysMathisen. “For instance, the system instantlyprovides the name of the person who, at anygiven time, is responsible for a report, and whois responsible for the actions. Furthermore, theperson who created the report will receive up-dates on the issue through e-mail, and be ableto continually check the status until it has beenclosed. This clear and concise overview willmake it easier to process an issue in the bestpossible manner. At the same time, employeessee that their involvement does matter. Theissue does not disappear into the big, blackbeyond, and will be finalised.”“The second main objective for Emendo is that

employees will learn from one another, acrossunits and responsibility boundaries, so that weslightly improve all the time,” says Mathisen.”But for people to be able to learn from theircolleagues, it is vital that they actively use thesystem when they report a non-conformanceor have an improvement suggestion. This is theonly way the information quality in Emendo willbe good enough to create an apparent transfervalue. My impression is that Statkraft employeesdo care about each other, even the ones they

don’t know personally, so I hope and believe itwill happen.”

Easy to useIn order for the threshold to report in Emendo tobe low, users must find the system easy to use.And it is user-friendliness when reporting issuesthat scored highest in the first assessment of thepilot study at the Ulla Førre power plants."You enter through the portal, and a few easy

clicks later, you find the form you want," says HSadvisor Bente Gudmestad Løland in Region WestNorway. "Not only that, but the form is easy tounderstand. The whole process is very efficient."Employees without daily access to a computer

can make a written report to a colleague withcomputer access. The remaining follow-up of thereport will, of course, be the same.Løland says that about two-thirds of the

reported incidents in the pilot study dealt withphysical non-conformances or improvementproposals, such as an escape route door beinglocked, or loose rocks that could fall from a tun-nel roof. The remaining reports mainly dealt withnon-conformances in various audits and reviews.

Graded by seriousnessAll non-conformances and suggestions aregraded by degree of seriousness. This will makeit easier for a colleague to get useful informationif they want to prepare a report on a subject ad-dressed by several other employees.“Emendo is user-friendly, both when you want

to make a report on a non-conformance, andlater, when you want to use this information,”Løland says. “Therefore, this is a system whichwill be a great benefit in creating a better andsafer working day in the entire company. ●

Creating a betterworking dayBy using emendo, statkraft employees in all unitswill help each other create a safer working day.the system has been tested in a pilot study, andthe feedback is positive.text: Cato gjertsen photo: alF Berg

“The system iseasy to use,” saysHS adviser BenteGudmestad Lølandin Region WestNorway.

my impression is that statkraft employeesdo care about each other, even the ones

they don’t know personally.anders mathisen, speCialist Consultant For health and saFety in pg.

Current affairs

13

abOuT EmENdO:a non-conformance and improvement system developed for, and to

be used by, the entire statkraft group. emendo will be available innorwegian, english and german. the system is integrated with the sapmaintenance system.

the pilot study was carried out at the ulla Førre power plants from 7 juneto 2 july 2010.

the preliminary assessment shows that users find it easy to report issuesin emendo.

emendo will ensure that every reported incident is handled optimally, andthat users learn from observations made by others, across countries andresponsibility boundaries.

no persons must be named in the system, because all employees havereading access. reports naming specific employees will be rejected.

people & power

statkraft should be praised forits international hydropower initia-tives. I find the strategy to develophydropower abroad reasonable.It will replace much of the fossilenergy currently being used.Statkraft is also very involved inwind energy, and if I was the boss ofStatkraft, I’d continue these efforts.But I would have focused on offshore,not land-based, wind farms. Thiswould spare coastal landscapes.I’m also not very enthusiastic

about major hydropower developments these days. I believe the impactof all current projects represent a threat to bio diversity, just as majorhydropower developments in the past did. It is much wiser to focus onenergy efficiency rather than new developments and power lines. It isnecessary to move way from development and towards efficient use ofthe energy we have!I participated both in the Mardøla protests in 1970 and in the Alta

protests a decade later. At the time, I participated in an attempt tostop development in bothplaces, and I would havedone exactly the same today.Neither the Mardøla nor theAlta development shouldhave been carried out. TheMardøla development hada major negative impact onthe local population in the Eikesdalen valley, and basically destroyed themagnificent Mardøla waterfalls, among our tallest and grandest water-falls. The Alta development is a classic example of unwise decisions, andeven former Prime Minister Gro Harlem Brundtland has admitted that itshould not have been carried out.The development had major consequences for salmon fishing and

Sami interests, and destroyed one of the most amazing landscapes inNorthern Europe.There are certain gains to be achieved from using alternative energy

sources, such as bio energy and wind energy, and I see a distinct develop-ment within solar energy and wave energy. However, it is more importantto focus on energy efficiency, where the potential is great. Reports fromthe construction industry indicate that it is possible to reduce energyconsumption in the construction industry by 12 terawatt hours over 10years. This equals almost 10 per cent of our total energy production. Weshould also provide more support to regular people, so they can replacetheir electric heaters with heat pumps and insulate their homes.

– Per Flatberg

In each issue, we provide various environmental experts in Norway and

Europe with the opportunity to present their view on the energy solutions

of the future. Many have protested against the development of power lines

in Hardanger this summer. Former secretary general of the Friends of the

Earth Norway, Per Flatberg (73) was a key figure in the oppositionagainst the Mardøla and Alta hydropower developments 40 and 30

years ago respectively. We invited him to give us his view on hydropower

developments today.

i would havefocused on

offshore, not land-based, wind farms.this would sparecoastal landscapes.

the environmental exPert

“Would have doneit all over again”

About two-thirds of the reported incidents in the pilot study dealt withphysical non-conformances or improvement proposals, such as looserocks that could fall from a tunnel roof.

emendo

statkraft14

Photo essay

Project manager Daniella Brakstad (in front) andfacility manager Monika Klungervik at the Rossåafish facility in northern Møre og Romsdal countyhandle the net cage which will go in the river. Thesmolt will remain in the cage for two or three daysto get accustomed to the new conditions, beforethe hatch on the top is opened and the fish’snew lives can begin.

15people & power

rossåa

millionstwo million roe, 450 000 little fish, twogene banks and a nok 26 millionbudget. Cultivation work instatkraft is no joke.photo: dag spant text: Birger Baug

sPawning

16 statkraft

we also want to be involved with thefish after it has left the facility, even

though statkraft’s responsibility ends whenit has been introduced to the wild.seCtion head, Fish and Cultivation, statkraFt, rume limstrand

Skilled worker Bjørnar Aasbø collects smoltready for tougher conditions in real life. Fromhere, the fish are placed in the trucks whichtransport them to their new home.

Bjørnar Aasbø operates the hose, followed byDaniella Braktstad. Skilled worker Pål VidarOlsen (right) is at the back, ready to transfer thefish from the tank to the net cage, while ErikSjølland has been seconded from the powerplant group to be the driver for the day.

Photo essay

17people & power

Monika Klungervik keeps a watchfuleye on Pål’s hands, as he gentlyreadies the smolt for transport.

rossåa

18 statkraft18 statkraft

the ultimate goal is that therivers and stock will be self-

reproducing, and we must givethem the best possible conditionsin order to achieve that.seCtion head, Fish and Cultivation, statkraFt, rume limstrand

The Rossåa fish facility is located in scenic surroundings at the very end ofthe Todal fjord. In the background are Bjøråskaret and Skjerding mountains,with peaks of 1 500 metres above sea level.

Photo essay

19people & power

“in total, we are 24 full-time employees allover Norway, with one facility in Finnmark county,two in Nordland, two in Møre and Romsdal andone in Hordaland. We’re also involved in severalother facilities around Norway,” says head of thefish and cultivation section in Statkraft, RuneLimstrand.“We also do fish farming and cultivation in

a number of other Statkraft countries, but wehaven’t quite decided yet on how to organise andpossibly coordinate the work being done in thevarious countries.”Roe and fish restocking is one of the regula-

tory requirements for Statkraft being permittedto develop river systems and produce energy.Good results help build a good reputation,and local governments are on board towardsa shared goal.“In addition, the gene banks safeguard endan-

gered salmon stocks. We operate these bankson behalf of Norway’s Directorate of NatureManagement (DN). The ultimate goal is that therivers and stock will be self-reproducing, and wemust give them the best possible conditions inorder to achieve that,” Limstrand says.One of the major projects Statkraft is involved

in, is to identify measure to prevent a largenumber of salmon dying in the transition be-tween river systems and fjords.“We also want to be involved with the fish after

it has left the facility, even though Statkraft’sresponsibility ends when it has been introduced.If the fish die in the sea, we will never reach ourgoal of self-reproducing stock.”

Limstrand and his colleagues want to makesure that the lack of return of fish is not due tothe Group’s power generation or fish restocking.“It is sad to stock fish, only to see that so

many die when they enter the sea. One of theproblems is the salmon louse which thrives inthe farming industry’s net cages and infects thewild salmon. We hope to get the fish farmers inon a new research project which will addressthis issue.”In any case, Statkraft’s cultivation history

dates back to the 1950s. The list over positivecontributions made by the fish department islong, but one of the most positive is the Alta river

system, where the development sparked mas-sive protests towards the end of the 1970s.“This is very much a success story for

Statkraft. The local salmon production is nowhigher than before the development, when theriver is seen as a whole. This story should reallybe promoted as a gigantic success,” a verypleased Limstrand says. The same can be saidof the reestablishment of the rivers Rana andRøssåga, after they underwent rotenone treat-ment due to gyrodactilus salaries.“These rivers have now received the green light

after receiving material from our gene bank inBjerka,” Limstrand says. ●

Pål Vidar Olsen (at the back) and Espen Sjøl-land have introduced a few thousand fish tothe wild over the course of their careers.

The salmon operations tend to attract specta-tors of all ages. Perhaps the boys are planninghow to get the salmon back out of the water…

rossåa

20 statkraft

wiNd Farm a hiT wiTh ThE wElshstatkraft hosted an open day at the alltwalis wind farm in Wales this summer.More than 1 100 local residents turned up for a grand day out, with activities foradults and kids alike.

”Our goal was to strengthen the relationship between Statkraft and the local community,and let the locals experience the wind farm up close. In this regard, the event was a hugesuccess,” says Eivind Torblaa, who recently stepped down as head of Statkraft UK Ltd.

The wind farm is located in idyllic surroundings on a hill just outside the village ofCarmarthen, with sheep grazing between the wind energy generators. The area had beentransformed in to a bona-fide fun fair for the occasion, with a bouncy castle, rodeo, facepainting and circus skills workshops, as well as a number of other activities.

A band from the local school held a concert, and several local organisations wereinvolved in the programme for the day. Visitors received a tour of the facility, and couldenjoy a barbecue, ice cream and popcorn on the stunning summer’s day.

Several sceptics left the event with a different view of the wind farm, after having seenthe wind energy generators up close.

“They look amazing on the hillside,” one visitor said, while another was surprised by thelow noise levels. The event was covered by local paper Carmarthen Journal and BBCWales.

A number of activities helped set themood during the event at Alltwalis.

50 new employees in Sweden next yearPower generation in sweden (Pgs) decided at the end of 2009 toin-source operation and maintenance of Swedish power plants.

Since then, the project team has continued its work, and it has nowbeen confirmed that about 50 employees at contractor E.ON-ES haveaccepted the offer to become Statkraft employees. They will becomeour colleagues on 1 January 2011.

“We are pleased that so many accepted our offer,” says PGS regionalmanager Per Nordlund. “We regard day-to-day operations and inspectionsas an important strategic requirement for continuous improvement andreinvestments, so that we, in the longterm, can realise the full potentialof the facilities. The fact that the majority of the crews have their day-to-day work at the facilities, improve these conditions.”

410000

Current affairs

statkraft’s traders in trondheim have now takenon all responsibility for all physical and financialpower trading for Fjordkraft. this entails ensuringelectricity for more than 410 000 customers.

21people & power

statkraft blowsONs awaystatkraft had a highly visiblepresence at the renewableenergy Park, the renewableenergy section at the ONS energyfair, held from 24 to 27 August inStavanger, Norway. More than40 000 visitors attended ONS,which is one of the largest energyexhibitions in the world.

King Harald V opened theRenewable Energy Park, right nextto Statkraft’s stand, and chattedwith President and CEO ChristianRynnning-Tønnesen. Rynning-Tønnesen also met with the BritishMinister of State with specialresponsibility for energy, CharlesHendry, before they both attendedthe Pure Energy for More Peopleseminar, hosted by Statkraft.

The main theme of theseminar was offshore windenergy, and the Britishminister spoke aboutthe UK’s significantinitiatives in this field.The wind energy de-velopment potential is30 000 MW, equal toa quarter of the UK’selectricity consump-tion, and at least half of

this is planned for develop-ment within 2020. Hendry

stressed that it is importantthat companies such as Statkraftinvest in this development,promising predictable frameworkconditions.

Generatorparty inalltwalis

Germany strengthens communicationsthe düsseldorf communications team has now received localsupport from the German power plants. Five employees have receivedtraining in Group policies regarding branding and design, media contact,sponsorships and Statkraft’s information channels (such as intranet,People&Power and brochures). They now have a complete understan-ding of Statkraft’s processes, regulations and guidelines.

This means that employees can seek advice from their localcontact, or the Düsseldorf communications team, regarding theircommunication needs.

“We have seen good results already after two months,” says AnneJoeken, communications manager for Germany. “We will definitelyexpand the network further.”

at smøla the eagle populationhas now increased to 65-70 pairs,and some individual birds, makingthe total population about 150 seaeagles. Since the completion of thewind farm in 2005, 35 dead eagleshave been recovered, but the popu-lation is now healthy and growing.

150New communicators, from the left, Stefanie Hauke (Landes-bergen), Sabine Reisz (Hürth-Knapsack), Michael Hans (Ger-man hydropower plants), Nesrin Schierling (Hürth-Knapsack)and Stefanie Buss (Emden).

made Norway cup historyfor the first time in the history of norway Cup a Nepalese boys’team participated in the football tournament. Statkraft, SN Power, BKKand HPL sponsored the team’s participation.The Kirne NC team 2010 is a local team, comprising players from two

villages called Kirne and Devitar in Nepal, near the small communitythat was created when Statkraft started construction of Khimti I. Thepower plant has been in operation for ten years now, and has Norwe-gian ownership interests through SN Power and BKK, as well as anoperations and maintenance contract through Statkraft.As part of the ten year anniversary, it was suggested we sponsor

a team for Norway Cup. Players were also treated to trips to theHolmenkollen ski jump, the Royal Palace, Tusenfryd amusement park,Hunderfossen amusement park and a boat outing on the Oslo fjord.The boys are from a poor agricultural area, where the residents earn

barely enough to feed their families. Most of the houses are made fromrocks and red clay, while some of the boys live in bamboo houses.And now football. The team’s goal was clear. They wanted to advance

to the knock-out stages. They started brilliantly with a 10-0 victory intheir first match. The following games were a bit slower, but the teamdid make it to the knock-out stages. However, they lost their first match,but still had a great debut in the world’s largest football tournament.Caption: The team played a brilliant starting match in Norway Cup,

and reached its goal to advance to the knock-out stages.

Laget gjorde en strålende førstekamp i Norway Cup, og klarte ogsåmålet om å komme til sluttspillet.

CEO Christian Rynning-Tønnesen hadmuch to discuss with the UK Ministerof State, Charles Hendry.

22 statkraft

feature

23people & power

Biotopes, introducing roe, mountain seeds,wild reindeer, condition reviews and camping.Utilising energy from a river is a complex task.

By Cato gjertsen, ellen jarli (photo), suldal muniCipality (photo) and torgeir sollid (illustration)

river systems and the environment

24 statkraft

hydropower is a renewable resourcethe world wants more of. Many wouldtherefore claim that Statkraft shouldproduce at maximum capacity, sothat the company fully realises its

potential, and at the same time maximises profit.“However, producing renewable energy does

involve some negative local impact in connectionwith reduced water flow in rivers and changes tothe water level in reservoirs, as well as aspectswhich may impact tourism and bio diversity,” saysMarilyn Marskar, environmental adviser in PowerGeneration.On the other had, reduced flood risk, increased

accessibility to hiking areas and municipal taxincome are examples of positive local impact.Using knowledge and experience, Statkraftbelieves it is possible to balance the various inter-ests in connection with renewable power genera-tion and local environmental considerations.

20 reviews until 2022When licenses are granted for river systemregulation, the terms which define how the watersystem is to be regulated are also set. A total of340 hydropower licenses could, under Norwe-gian legislation, be up for review by 2022. About20 of these belong to Statkraft. Together withlocal governments and other stakeholders, Mari-lyn and her colleagues will find the solutions thatbest combine the need for renewable energyproduction and local environmental concerns.These reviews primarily provide the opportunity

to set new terms to alleviate environmental dam-age as a result of hydropower developments.Each license contains a set of terms regardingthe production, and which state everything fromwater flow to the lowest level in the reservoir at agiven time during the year. During the reviews, itis these terms that are looked at, not the actuallicense. Issues such as fish restocking, clearing

and refilling restrictions for reservoirs are dis-cussed and reviewed. The actual river regulation,with the maximum and minimum regulated waterflow rates (water flow regulations) can not bechanged however. Neither can civil law issues orbusiness interest issues.In the end, it is the government, after recom-

mendations from the Norwegian Water Resourcesand Energy Directorate (NVE), and the Ministry ofPetroleum and Energy (MPE) who decide how tobalance the need for renewable energy produc-

tion with local environmental impact, by settingthe terms which, after a comprehensive review,are in the best interest of society.

From the 1950sThe license term reviews apply to licensesgranted before or during the 1950s.“In the 1950s, other considerations were made,

and there was a different focus on environmentalconsiderations than today. These change withthe term reviews, but the stricter the regulationsbecome, the less flexibility the power plants willhave in terms of maximising the energy production.This is a balancing NVEmust do, based on inputfrom all involved parties, with the host communities

and Statkraft as two of the most important,” saysMarilyn Marskar.She is one of several employees who are

in dialogue with municipalities, commissionstudies and assess the working of Statkraft’sfeedback to NVE. Marskar says one of the mostexciting aspects of her job, is that in every stepof the process, she faces major considerations.“How far should we go in promoting certain

environmental measures, when we at the sametime seek to maintain our production basis andflexibility? Is it better that we suggest solutions

Water anguishmarilyn marskar works on challenges that, no matterthe solution, will affect statkraft’s power productionin norwegian river systems for decades ahead.

there’s a longlist of dilemmas,

and we almost neverhave an answer that’s100 per cent right orwrong.environmental adviser, poWer generation,marilyn marskar

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25people & power

river systems and the environment

“despite the already very strict regu-lations from the authorities, Statkraftcontinuously works to find out how we cansafeguard the environment even better,”says section head for the environment andlicenses, Vegard Pettersen.There is hardly any other country in the

world, besides Norway, with as strictlegislation to regulate the energy industry toachieve the most sustainable development.Under this legislation, the water resourcesand environmental authorities in Norwaycan demand changes in river management,and order companies to implement improve-ment measures, restock fish and carry outenvironmental studies.Still, in some cases, Statkraft chooses

to go beyond the regulatory requirements,according to Pettersen. Through voluntarymeasures, studies and self-imposed restric-tions, the company emphasises making anextra effort for local communities and theenvironment.Pettersen says the self-imposed restric-

tions are closely tied to how Statkraft hasbeen formed by its history. He points outthat ever since the start, Statkraft has hada strong local involvement with the variousriver systems. And locally, one always hadto keep in mind how to limit the negativeimpact.“It is important to us to be a good neigh-

bour. Since we constructed the facilities,we have constantly acquired new expertise,which we use to improve the sustainablepower production. When we now see newopportunities to use and expand this exper-tise, it sometimes results in a self-imposedrestriction or a voluntary measure. By doingthis, we would like to show the world that weare conscious of our environmental respon-sibility, at the same time as we unite thiswith financially sound power generation. Inthe long term, we therefore safeguard thepossibility of continued high sustainableproduction,” Pettersen says.

One step ahead

that would reduce our production ability, ratherthan NVE deciding it for us? And how wouldvarious solutions affect how people regard us,locally and in general?” “There’s a long list ofdilemmas, and we almost never have an answerthat’s 100 per cent right or wrong. We focus onshowing that there are a number of measuresthat can be introduced, without weakeningthe flexibility of the energy production. Veryimportant measures include restocking fish andimproving spawning conditions for fish. It is alsopossible to facilitate camping and fishing. Not

least, other measures could be introduced forother species impacted by the development,such as in Aura, where a solution was foundto make it easier for wild reindeer to cross theAursjø reservoir,” Marskar says.“Each river regulation is unique, with different

requests and local demands. We want to have agood dialogue and so it remains to see what theauthorities change. Regardless, their decisionswill be one of the most important guidelines forStatkraft’s activities in Norwegian river systemsin the decades to come.” ●

26 statkraft

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1

3

45

7

8

8

2

Working the river systemstatkraft uses a wide spectrum of measures in regulated river systems.here you can learn about some of the most important ones.

27people & power

1goals for fish-related workFacilitate self-reproducing stock, and

introduce fish where restoration measuresare not enough.

2measures to imProve biotoPesMeasures to maintain the biodiversity

of river system. The measures promotenatural processes in the river system andimprove living conditions for fish.

3 oils adaPted to the environmentAt the Pålsbu power plant, oils adapted

to the environment are used. These oilsdegrade quicker. Any leaks will, as a result,have less impact on the environment.

4studies of freshwater biologyHydropower production impacts living

conditions in the river. In order to gain suf-ficient knowledge, studies are carried outat 20 Norwegian salmon fishing rivers andseveral reservoirs.

5roe PlantingIn order to simulate a natural spaw-

ning pit, roe is placed in grate boxes.Planting roe provides young fish that arebetter adapted to the river system than withnormal restocking.

6fish CultivationStatkraft’s six fish cultivation facilities

in Norway and Sweden produce fish androe which are introduced to regulatedareas. Statkraft also operates two ofNorway’s three salmon gene banks.

7mountain seed bankA mountain seed bank is being

developed in order to revegetate damswith local flora. The bank safeguardsbiodiversity and reduces the negativeimpact of alien flora.

8fishing and CamPingThe “Along the river” project will

increase accessibility to river banks.Shelters, fishing spots, hiking trails, bridges,rest areas and swimming areas are beingconstructed.

9wild reindeerMapping wild reindeer migration

patterns and grazing areas. The project willincrease knowledge of the consequencesinfrastructure could have for wild reindeer.

river systems and the environment

6

9

28 statkraft

For a long time, the old LågaBridge was an important thor-oughfare between the com-munities on opposite sidesof the River Suldalslågen,but due to increasing decay,the bridge was closed to alltraffic in the 1990s. Many

wanted the old bridge reopened, but Suldalmunicipality gave priority to a larger and “moreimportant” bridge instead. Supporters of theold bridge had to face the fact that there werenot enough funds to restore their belovedmast bridge.

“means a lot”But then word of the “Along the river” projectreached the municipality. The Ulla-Førre plantsare located near the Låga Bridge, and Statkraft

decided to support a restoration project. Thetotal cost was NOK 600 000, and with a NOK150 000 guarantee from Statkraft, the fundingwas in place. Restoration work started, and inNovember 2009, the mayor could finally reopenthe Låga Bridge to traffic.Project manager Bjarte Skipevåg in Suldal

municipality is very happy with Statkraft’scontribution.“The bridge would almost certainly have

remained closed had it not been for Statkraft,”Skipevåg says. “Through this, the company hasdemonstrated that it takes on an important re-sponsibility for the local community and the peo-ple who live here. The feedback from the localshas been unanimously positive. In fact, I can’trecall ever being part of a project that has beenso well-received by all. That says somethingabout the position the bridge has locally, and

why Statkraft’s contribution is so important.”

“along the river” reaches far“Along the river” is a project aimed at introducingenvironmental measures in and along regulatedriver systems, so that the utilitarian value in-creases for more people. Many of the measuresare also intended to increase biodiversity, byfor instance improving and expanding spawn-ing areas, and creating better hiding places foryoung fish.“Statkraft has opted for a wide interpretation

of the environment concept. This is why theproject also includes environmental measuressuch as new shelters and swimming areas whichrestore cultural heritage sites and facilitation ofvarious trail types in connection with Statkraft-regulated river systems.The project was initiated in 2007, and will run

bridging the gaplast year, residents of the suldal valley had an old and dear bridge reopened, due tosupport from statkraft. across norway, local communities are being helped by the”along the river” project. europe is up next.

The Låga Bridge restored to its former glory.

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29people & power

river systems and the environment

the good neighbouroften, statkraft believes it has the best solution for allkinds of challenges. But sometimes it is good to let others identify theanswers.This is the case with the “Along the river” project, where resources

will be spent on environmental measures in and along regulated riversystems. The first step in the process is Statkraft providing informationabout “Along the river” in local media, asking for input. Individuals, mu-nicipalities, organisations and associations then describe projects theyseek support for. When the list of measures takes shape, a joint reviewdetermines the measures that will have the greatest benefit for the localcommunity. If it is financial support, Statkraft will make the payment uponcompletion of the project.”We have received very good feedback from local communities on the

projects and how we go about assessing them,” says Kåre Paulsen, riversystem and environmental affairs coordinator in Region Western Norway.“Although we do have a significant presence in the regions, in the end, itis the local population who is best equipped to have an opinion on howthey wish to use their surroundings and areas at our power plants.”He believes the most important reason why “Along the river” has

been received so well is that the project has a distinct Statkraft brandto it, meaning that dialogue and transparency are at the forefront.“In addition to “Along the river”, Statkraft has regular meetings with all

its host communities,” Paulsen says. “During thesemeetings, we provide earlyinformation on any plans the company wishes to implement. This message canthen be communicated to the rest of themunicipality, so that we then can getfeedback and objections. It is important that Statkraft always remains openand by the book, so that the local population continues to trust us. The experi-encesmade during “Along the river” are a good tool in this regard.

for five years. During this time, Statkraft willspend about NOK 15 million on approximately50 projects, and also provide expertise andlabour from its own ranks,” section headVegard Pettersen of environmental affairsand licenses says.The project has been well received by the host

communities for the power plants, and Statkraftis also pleased with the execution and effect ofthe measures. In fact, the results have been sogood, that “Along the river” projects have been

approved in the company’s new regions in Ger-many, Sweden and Wales. In coming months,the company will take the lessons learned in

Norway, assess local conditions, and startintroducing measures at the top of the wish list. ●

in fact, the results have been so good,that “along the river” projects have been

approved in the company’s new regions ingermany, sweden and wales.

Statkraft contributed NOK 150 000to the restoration of the bridge.

“I can’t recall ever being part of a project that has been this well-received by all,” says project manager Bjarte Skipevåg in Suldalmunicipality (in front, left). Pictured here together with Mayor TorkelMyklebust during the opening of the bridge.

30 statkraft

statkraft is finally starting construction of its first windfarm in sweden. The Em wind farm outside Mönsterås will consistof four wind energy generators, with a combined installed capacityof 9.2 MW. Construction started in June, and will, according to plan,continue for nine months. The investment will be SEK 130 million.

The wind farm is a result of the collaboration with SödraSkogsägarna, which started last autumn. The agreement includeselectricity and district heating deliveries to Södra’s plants, anddevelopment of 600 MW wind energy on Södra-owned land.

Statkraft has also entered a partnership with Europe’s largest pri-vate forest owner, SCA, in central Sweden. SCA Vind AB has receivedlicenses for six wind farms with a combined installed capacity of1 140 MW in Jämtland and Västernorrland counties.

Statkraft has a total of 1 150 MW of wind energy in detailed plan-ning in Sweden, enough to supply 120 000 households.

all’s good that Ems well

statkraft powersTurkish homesstatkraft is now, for the first time, deliver-ing clean hydropower to the Turkish marketfrom its very own hydropower plant. The Cakitpower plant is Statkraft’s first hydropowerplant in Turkey, where the demand forelectricity is expected to double by 2020.Statkraft is planning several other majorhydropower plants in the country.

“Statkraft’s initiatives in Turkey havegood profitability and contribute more cleanenergy to Europe. Jobs and local developmentare also created,” says President and CEOChristian Rynning-Tønnesen.

The Cakit hydropower plant will deliverelectricity to the Turkish energy market.Cakit will have an annual average productionof 95 GWh, enough to supply 32 000 Turkishhouseholds with electricity. Statkraft isworking on an additional three projectsin Turkey.

teChnology & the environment

31people & power

Power on the riveris it possible to generate power from biomassusing a run-over-the-river plant? Well, notquite, but the power plant can at least provide someof the biomass.

Head of the German hydropower group, MaikThalman, has lots of ideas, and wants, quiteliterally, to get the most out of the powerplants. Every year, 1 000 tonnes of floatingwaste ends up in the debris catchers atStatkraft’s German powr plants. Thesecatchers collect waste and heaps of woodchips. In fact, 28 of 30 collected cubicmetres are biomass.The first theoretical and visible results

from the Robert Franck biomass powerplant confirm that the waste quality is

sufficient to be used in power generation.The time has now come to find out if the project

is profitable.“We really hope that the result from the ongoing trials

will be positive,” says Thalman.“It would be a pity not to use a valuable resource that,

quite literally, comes floating. Incineration of driftwoodresults in unexpected synergies and an eco-friendlycycle, so this would fit very well with Statkraft’s goals.”

this summer’s membrane confe-rence in san diego, which Statkraftco-sponsored, was a massive success.More than 100 participants from indus-trial and research communities workingto produce membranes for osmoticpower generation and clean waterproduction took part. There was a greatinterest in the experiences Statkraft hasgained from the osmotic power plantat Tofte.

The conference’s purpose was togather the top people within develop-ment and commercialisation of mem-brane technologies. Cooperation acrosscompany and geographic boundaries isvital if osmotic power is to be a techno-logy to be reckoned with in the future.It is worth noting that US authoritiescontributed both with speakers andaudience during the conference. A majorNorth American energy company, Hydro

Quebec, gave its support to osmoticpower as a possible next-generationsolution they wish to invest in during itsrepresentative’s speech.

Statkraft’s osmotic power bossStein Erik Skilhagen was impressedby the progress made since the firstosmotic power conference in Amster-dam in 2008.

“New research communities areemerging, and significant resourcesare being allocated to bring forth newmembrane solutions. The next osmoticpower prototype is already in thestart-up phase in Japan,” Skilhaugensays, adding that Statkraft is gainingwide-spread recognition.

“There are great expectations as towhat Statkraft is doing in this field, andthere is a lot of focus on the experiencesfrom the osmotic power plant at Tofte,”Skilhagen says.

OsmOTic POwEr, ThE amEricaN way

the height ofwind energygenerators isusually between63 and 70 meters.if you add therotor diameter,they becomealmost as highas the 117 metrehigh oslo Plaza.70

Providinglight for32 000turkish homes

record year foroffshore windduring the first half of 2010, 118 new offshore windenergy generators were connected to the power grid.According to new figures from the European WindEnergy Association EWEA, the 118 wind energygenerators have a combined capacity of 333 MW,well over half the 577 MW offshore wind energyinstalled last year. This proves that the growthin offshore wind energy is strong, despite thefinancial crisis. According to EWEA, an ad-ditional 151 wind energy generators (440MW) were installed, but not connectedto the power grid.

“The number of wind energygenerators connected to the powergrid in the first half of this year,are well over half the totalnumber of wind energygenerators installed lastyear, and I feel confidentthat this will be a recordyear for wind energy,"Justin Wilkies, policydirector of EWEA, says.

32 statkraft

vignett

32 statkraft

no more Pajama Partiesthey work in very different parts of the world, and eat in differenttime zones. Usually when project development and carbon creditsare on the agenda, at least one of them is still in their pJs. How-ever, here in lovely son, the sN power and statkraft carbon teamsare finally united in the same place, and at the same time.

text: helena aina Zissis Photo: dag sPant

Well done! When the carbon teams – at long last – were able to meet atthe same time, there was a lot that needed to be ‘aired’; as evidenced byour informal windmill test. Here Vinka Hildebrandt, Rodolfo Azanza, Mari

Viddal, Suman Basnet and Kristine Kjelaas test their lungs.

visit

33people & power

the carbon teams’ workcovers everything fromproject development to pur-chase and sale of carboncredits, to different types

of analysis. The discussions thattook place during the workshop atSon Spa covered all aspects of theactivities, and included exchangingopinions on how the carbon marketwill develop after 2012.This was the very first time that

Statkraft and SN Power employeeswere gathered in a single location.Nearly the entire SN Power carbonteam was in place, with its repre-sentatives from Nepal, the Philip-pines/Vietnam, Chile, Singaporeand Oslo. For many of them, theirdaily work involves working closelywith the local projects to facilitatethat the projects qualify for CDM.Therefore, the workshop was auseful opportunity to share experi-ences – over lunch!

dinner or Pjs?“The workshop is a great opportunityto bring together participants fromthe entire value chain in the carbonteams – from projects to trading.The on-site representatives try tohold monthly telephone confer-ences, often with one colleague intheir PJs and another just sittingdown to dinner, but there is nothingquite like a good, old-fashionedface-to-face meeting. This makesit easier to pick up the phone later,”says Suman Basnet, SN Power’srepresentative in Nepal.“Yes; not to mention the profes-sional input, which is great! Here,those of us who normally follow thedevelopment projects very closelycan sit and discuss things withrepresentatives from other parts

of the operation. This increasesour understanding of the process,”says Rodolfo Azanza from SN Powerin the Philippines.“Statkraft’s trading and analysisteam is also represented, whichadds an extra dimension to projectdevelopment, which we follow on aday-to-day basis,” adds Basnet.

wide-ranging marketexPerienCeThe participants have plenty to learnfrom each other – although experi-ence gained from a project in onecountry is not necessarily similarin a different project.“Many things are specific to theindividual countries. CDM is stilla young market in a small countrylike Nepal, which is why personalrelationships are still important,”says Basnet.“In Chile, one of the main chal-lenges is to explain how the CDMmarket functions in relation to theenergy market,” says Vinka Hilde-brandt, CDM manager in Chile.“SN Power has been a pioneerin the CDM market. We haveconvinced the UN to change themethodology for new hydropowerprojects and upgrades of existing

projects,” says Azanza, and adds:“Europe leads the field when itcomes to carbon trading, but themarkets in Africa and Central Asiaare developing rapidly, and it’simportant to be prepared.”

very benefiCial CooPerationAround the lunch table, everyoneagrees that the integration of SNPower and Statkraft provides goodopportunities for cooperation,precisely when it comes to futurepositions in new and existing car-bon markets.While SN Power is a direct de-

veloper of CDM projects worldwide,Statkraft contributes market sup-port, trading and analyses.“We benefit from each others’experience,” says Kristine Kjelaas,Director of Climate Programmesin SN Power.“The most recent updates andanalyses from the trading group aregood examples of useful information– particularly with a view towardsdevelopment of the carbon marketafter 2012,” says Mari Viddal inStatkraft. Cooperation betweenSN Power and Statkraft has beenfurther intensified over the last sixmonths in that she and Anne Bolle

have worked one day per week withSN Power’s CDM team. One of theirtasks was to assist in the processof obtaining approval for the CDMin the UN system.

a gathering of exPerts“Meeting as a group to discusschallenges and opportunitiesacross the value chain gives us thechance to strengthen our marketpositions in the future. It is verygood that experts at all levels aregathered and can explain theirfields to the other participants.This makes the work more inter-esting for everyone because yougain a better understanding ofthe entire process, and it helpsreinforce the feeling of being animportant contributor to the valuechain,” says Kjelaas.“Yes, this is excellent networking,”says Basnet; with a particular nodto the strong representation fromStatkraft’s trading and analysisdivisions.“For those of us involved in the

“first stage”, close to the develop-ment projects, it is very motivatingto hear about the experiencesof the carbon players who tradecredits in Amsterdam and Oslo.” ●

Carbon teams

lunch with:The carbon Teams insTaTkrafT and sn Power

The carbon teams in sn Powerand statkraft have completedtheir first joint workshop. Thetwo companies share many of thesame interests, with under-standing of the carbon market,particularly the clean develop-ment mechanism (cdm), andlarge-scale hydropower beingtwo of the most notable sharedissues. one of the results of theworkshop was an agreement todevelop a joint policy memo thatcan be used in the market.

… is People & Power’s informal lunch-room contest, where the question iswhich units have the highest lung capacity in the statkraft system. Theannual winner will receive a small surprise by mail.

ranking:1) The statkraft and sn Power carbon teams: 147.7 ma2) The employees at statkraft's hydropower plant in rheidol, wales: 110 ma3) The employees at statkraft's istanbul office: 100.4 ma

the Power Challenge …

147.7mafor the record: The result is thehighest recorded reading, statedin milliamperes.

Around the table, from left: Mari Viddal,Kristine Kjelaas, Suman Basnet, RodolfoAzanza, Vinka Hildebrandt.

34 statkraft

Tormod schei (60)Born and raised at torshov, oslo

Position: vice president of environment, statkraft

education: Biology degree, university of oslo

Civil status: resides in stevik, outside Fredrikstad.married, three children

outside of work: reads a lot, especially sciencemagazines, but is also fond of science fiction books.sings tenor in a barbershop group with a group ofmates. Can often be spotted on the fjord in his boat.representative for the liberal party on the planning andenvironmental Committee in Fredrikstad municipality.

Tormod Schei knows nothing better than donning hisblue cap and spending time on the fjord with his daycruiser. “This is the greatest cap in the world,” he says.“I’ve had it since ‘93, it floats, can be crunched up andhas a strap to go under your chin! I wrote a letter tothe manufacturer in the US, asking them to resumeproduction, but unfortunately, they said no.”

the Position

35people & power

tormod sChei

the man who wanted to

vice president of environment tormod schei strongly believes renewable energysources can replace oil and coal. he just needs to convince the rest of the world.having been on the stage at royal albert hall in london might come in handy.

TexT: sissel FantoFt PhoTo: ellen johanne jarli

36 statkraft

e greets us in the receptionarea at the head office in Lil-leaker with a big smile, andguides us to his small office.“I’ve been stressed over this

interview all week,”he says.

“I’m not too comfortable with the focus beingon me. But I have a great job that I can say a lotabout!”For 10 years, Tormod Schei was the senior

environment adviser in Statkraft. He holds abiology degree and has worked as a teacher.He has also worked in the municipality sectorand as a consultant. A year ago, he was giventhe managerial role in a separate environmentalaffairs department at Group level, with threesenior advisers.“We function as advisers for the entire Group,

and will safeguard Statkraft’s environmentalinterests,” he says. “We will take an active partin influencing the framework conditions, bothnationally and internationally, be present duringprojects and make sure the environment is safe-guarded. Developments in environmental affairshave been rapid in recent years, and Statkraftis at the very front. Our environmental approachwill make us more competitive and even provideus with new business opportunities!”

Great potentialTormod Schei is convinced the climate is chang-ing, and that this is at the hands of humans.“I think the climate sceptics have based their

doubts on the wrong foundation, and havegotten caught up in the details,” says Schei. “Oiland gas free carbon from subterranean storage,and when we release CO2 into the atmosphere,the greenhouse layer gets thicker. The result isa warmer, wetter and wilder climate. In addition,bio diversity is reduced and the seas becomemore acidic. Statkraft’s role in the fight againstclimate change is to deliver renewable energy.”He believes energy from sources such as

water, wind, sun and wave/tide probably couldreplace oil and coal.“The great thing about hydropower is its flex-

ibility,” says Schei. “When it clouds over, solarenergy is out, the same goes for wind energywhen the wind doesn’t blow. But water can bestored in reservoirs, and there is a great poten-tial here.”He leans forward, pleased to explain.“To take

one example, we’re involved in a project inLaos, where Statkraft subsidiary Nordic Hydro-power has a 20 per cent stake. The remainderis owned by the Laotian government and a Thaicompany. I was there in April and they’re doingsome really fascinating work. They alreadyhave a hydropower plant without a reservoir,a so-called run-of-the-river plant, and it isnow being expanded with a massive reservoir,which will ensure stable energy generationeven in the dry season. The process entailsmajor infrastructure projects, and several vil-lages will be moved. We are taking on the roleas the responsible owner to make sure that

people are treated well.The families get new housing, electricity, healthservices, schools and roads, and kitchen gar-dens and fields to provide them with increasedincome. This is a great example of a sustain-able hydropower development.”

Nerve-racking processAll interference with the environment has posi-tive and negative consequences. Sometimespeople will have to move when new hydropowerplants are developed, for example. Sometimeswildlife is affected – at our wind farm on Smøla,for instance, sea eagles sometimes fly into thegenerators.“There is no energy source without any

negative consequences,” says Schei. “Societyneeds to decide what consequences are ac-ceptable And when these tradeoffs do occur,it is important to show that we take responsi-bility in everything we do. We try to systemati-cally improve all the time.”The UN climate panel, IPCC, is currently

preparing a special report on global renewableenergy strategies. Tormod Schei has preparedthe chapter on hydropower.“I’m both humbled and a bit anxious when

it comes to this,” he says. “After all, thereare a lot of people in Statkraft who know alot more about hydropower than I do. I wasnominated by Norwegian authorities, togetherwith hydrology professor Aanun Killingtveit. Thehydropower group comprises nine people fromall over the world, and it is a nerve-rackingprocess. The final draft will be submitted overChristmas, and I hope it goes well. This will bethe advice to world leaders on how to handlehydropower until 2100.”

long summers outdoorsWhen Tormod Schei gives advice to world lead-ers, it is based on a strong interest in nature,an interest he has had since his childhood”My mum died when I was still little, and my

dad, who worked at the tax office, was left withme and my brother, who has a brain injury,” heexplains. “Back then it was unthinkable that hewould have the sole responsibility for the two ofus, so my dad’s family took my brother with themto Western Norway, while I spent long summerswith my mum’s family in Fredrikstad.”Built at the mouth of the Glomma river, this

beautiful area of riverside trails, forests, bogs,hills and beautiful ponds is where his love affairwith nature, and with Fredrikstad started, so itcomes as no surprise that he made this town hishome 23 years ago with his wife and three kids.His early interest in nature and the environment

led him to earn a biology degree in the 1970s,and a major in ecology with specialisation infreshwater ecology and salmon.“It was a conscious choice to stop doing re-

search after my degree, because I rather wantedto use my knowledge of the ecosystems insociety,” he says. “Statkraft is the only place I’vebeen where I can make use of absolutely all myexperiences, so you could say this is my ideal job.”When he is not working, he reads a lot or goes

out on the fjord in his boat. As well, he sings in abarbershop group, and every other year, he andhis musical mates go on a boys-only trip.“We’ve been to London and Barcelona, and

the next trip will be Berlin. We sing on thestreets and in the pubs, we even sang at RoyalAlbert Hall! We were on a guided tour, andwhen we came to the stage, we sang a song.Not everybody can say that!” ●

there is no energy source withoutany negative consequences. society

needs to decide what consequences areacceptable.

h

The advisers in Statkraft’s environmental department say Schei is a great boss. He is pictured here together with ÅseRoen. “My leadership philosophy is to make sure the staff is stimulated at work, so that they can develop,” says Schei.“We have a great environment in our department, but I’ve been told I need to improve on keeping up with my e-mails.”

the Position

37people & power 37people & power

statkraftis the only

place i’ve beenwhere i can makeuse of absolutely allmy experiences.

tormod sChei

38 statkraft

hse

Before summer, statkraft held the largest disasterdrill in company history in landesbergen, germany.text and photo: judith tanninger

New hsE directorClaudia hauge is the functioning HSE SVP afterTorbjørn Lyngestad started in a new position in PowerGeneration on 1 June.“In Statkraft we have ambitious goals as regards

health, safety and the environment, both domesticallyand abroad. The HSE SVP position is both very excitingand challenging,” Hauge says. “Our goal is to avoidinjuries in Statkraft, and this applies both to our ownemployees and to contractors in consolidated and as-sociated operations. This means that we must improve

implementation of Statkraft’s HSE requirements withour suppliers in all projects, and to implement a systemfor learning from serious incidents, near accidents andhazardous conditions across the consortium,” Haugesays. She has plenty of experience with HSE. Her back-ground includes heading the health and safety section ofthe Group’s HSE staff, and she has more than 20 yearsexperience from working with HSE. Hauge started inStatkraft in 2007, and was appointed VP of health andsafety in July 2008.Mads Magnussen is now the functioning VP of health

and safety.

the drill was held at the city’sgas power plant and simu-lated a gas explosion with13 casualties. A total of 240emergency response workers

and employees were involved in the drill,which lasted several hours. This is thesingle largest drill ever held by Statkraft,regardless of country.

drill, drill, drillThe purpose was to check if the gaspower plant’s emergency preparednessfunctioned as intended, and just a selectfew were aware that a drill was at hand.Strengths and weaknesses with the planwere monitored and assessed, as were

the efforts by the plant’s own employeesand those of the emergency services.The preliminary results have alreadybeen applied to other ”what if” drills.”The best practice we can get for a crisis

situation – which we of course hope neverhappens – is to drill, drill, drill and thendrill some more. This principle appliesboth to the theory and practice,” saysHSE manager Stefan Rembges.

annual drills”We plan to hold one practical drill like thisat each power plant annually. This is theonly way employees will gain the expertiseand confidence they need if they face anactual disaster,” Rembges says.

the greatest”disaster” in history

39people & power

It was easy to see that the fire hose was one of thethings that worked best during the drill.

A total of 240 people were involved in the largest drill inStatkraft history.

statkraft …Statkraft is the European leader in renewableenergy. The Group develops and produceshydropower, wind power, gas power and districtheating, and is a major player on the Europeanenergy exchanges. Statkraft has more than3200 employees in more than 20 countries.

New chief security Officermorten h. rørvik will be the new Chief Security Officer in Statkraft,when Petter Sørensen retires at the end of the year. Until this date,Rørvik will be the assistant Chief Security Officer.Rørvik was hired in March 2009, as senior health and safety adviser

in the HSE Group staff. He holds a Master of Letter in Middle East Secu-rity from the University of Aberdeen, and a Master of Military Arts andSciences (eq.) from the Royal Norwegian Air Force Academy/NorwegianDefence Command and Staff College. Rørvik’s has extensive experienceas an air force officer and senior adviser in Flack Notec Crisis Manage-ment AS, including crisis management and preparedness planning/management, with special focus on strategy at the Group level.

There was plenty to do for emergency workers. Herewe see one of the 13 ”casualties” being brought tothe ambulance

trude frydenberg (47),senior adviser, TcT nn,sandefjord

"I paid close attentionwhen Statkraft acquiredFjordkraft’s portfolio thisspring. Fjordkraft is an end-user company, witha strong customer focus, and for this reason Ifeel I bring very valuable experience to the table.It will be exciting to be a part of Statkraft, whichhas experts in every part of the value chain. Ihave a mobile office, and will be travelling exten-sively to Trondheim and Oslo to keep in touchwith my professional environments.”

gordon lugsdin (30),Ports, vessels and logisticsmanager, reading, Uk

“I started in Statkraft to bea part of the Forewind consor-tium. I previously worked asPort Operations Manager in a UK company, butwanted a new challenge in a different companyand learn their values. Statkraft is an importantplayer in renewable energy in the UK, and I lookforward to being part of the company’s futureplans and ambitions.”

eirik mo (31),analyst, emd, Trondheim

“There was a pretty steeplearning curve, and I quicklyreceived operational respon-sibilities. I was well receivedby a department with four women. All five of usare very athletic, and I’m proud that we’re at thetop of the physical exercise competition “Energyfor Life”. I’ve already paddled home from workon the Nidelva River. As a doctor of statistics Ihope to be involved in developing better analy-ses of uncertainties in the price prognoses.”

julie advocaat lund (24),controller, Treasury depart-ment, lilleaker

“I graduated from the Uni-versity of Edinburgh in May,where I took business studieswith focus on finance. In June, I had my first dayin Statkraft. I already feel that this is a companywhere I can grow. I also feel that my position fitswhat I see as my career ladder in an exciting,future-oriented company, with focus on renew-able forms of energy.”

what is your view onstarting work in statkraft?

40 statkraft

the history lesson

a piCturesays morethan athousandWordsthis poster is from a timewhen power line constructionnot only had the backing ofthe labour Party, but of theentire population. the mes-sage seems to be as long aspylons are built, the nation canhave a bight outlook.

the labour election posterfrom the 1950s, dates back to whenStatkraft, the Norwegian WaterResources and Energy Directorateand Statnett were all one company.But today, when Statnett, now aseparate and very much lambastedcompany, wants to construct powerlines and cables, the reaction is quitedifferent. All of Hordaland Countyseems to be up in arms over the deci-sion by Statnett and the governmentto construct a number of large pylons,partly over and partly on the side of theworld famous Hardanger fjord. Peopledon’t want to see cables, but they agreethat securing a power supply for Bergenis a worthy goal.Perhaps this poster could help explain

the difficulty Labour has with seeing any-thing but massive pylons in Hardanger.Then again, campaign promises do havelimited shelf life. Which is perhaps whysome party members want to compromisewith the protesters and give the subseacable alternative a more thorough review.Illustration: Archives of theNorwegian Labour Movement.

Poster states:"Progress will continueThe Labour Party"

energetiCmotto