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Bio energy: Bio energy is the most important contributor to current new renewable energy supply in Norway. The total recorded consumption of biomass in 2000 was 16 TWh, of which the wood processing industry used 7 TWh. Wind energy: In spite of Norway’s large wind power potential, only 13 MW of wind energy generation has been installed so far. The Norwegian Water Resources and Energy Directorate (NVE), a directorate under the Ministry of Petroleum and Energy, has granted concession to a number of new wind parks. Heat pumps: Heat pumps have become popular in recent years, 30000 heat pumps were installed by the end of 2000, and heat pumps are now the fourth largest contributor to heat supply with 4.5 – 5.0 TWh per year. District heating: There are 30 district heating plants in Norway. Preliminary estimates indicate a gross production of 2.0 TWh in 2000. About half of the net supply was produced in waste incineration plants. District heating amounts to 2 % of the energy used for heating purposes. Indication of price level of electricity and petroleum products at end users (household, industry) Cost is a critical factor in the development of renewable energy in Norway, where it must compete with fairly low electricity prices. Total price for electric energy, VAT and grid rent taxes included, was 0.597 NOK/kWh (7.46 eurocents/kWh) in the 1st quarter 2001. The taxes constituted 48.6 per cent of the price of electric energy for households. As the electricity supply system in Norway is almost entirely based on hydropower, the generation and hence the spot prices depend on the annual hydro inflow. In a year with normal hydro inflow, the current generation capacity is about 118 TWh and actually about 6 TWh less than the consumption last year. So in normal or dry years, Norway must import energy from its neighbouring countries. In wet years however, there may be a surplus generation for export. As a consequence, quite dramatic variations in the spot prices are observed, ranging from an average of 0.10 NOK/kWh last year to 0.25 NOK/kWh in 1996. In the years to come, similar variation in prices must be expected, though the average level is anticipated to rise. At rather conservative assumptions, and excluding the effect of possible CO2 taxes or quotas, the average price for year 2010 is estimated to be around 0.18 NOK/kWh. Even though the energy cost of renewables in some cases is lower than conventional technology, decision-makers tend to choose the conventional systems. The reasons could be lack of knowledge, high investment costs, buildings without water-borne heat distribution systems or higher risks because these are new technologies. Degree of liberalisation in the energy markets in reference (role of utilities, free access for investors to engage in renewable energy projects etc.) The Norwegian Energy Act of 1990 liberalised the electricity sector and opened up this market to competition. At the spot market contracts are traded daily for physical delivery in the next 24-hour period, and the price is fixed by the balance between bids and offers from all market participants. Development of new markets paying a premium for “green energy” may of course change this to the better for wind energy. The roles of the utilities have changed. New investors can supply energy to the market and compete with more conventional utilities. To what degree are environmental benefits of using renewable energy important in the debate?PDF Image | Organisations in Different Renewables
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