SFFE – our research, competences and technologies on renewable energy

SFFE Senter For Fornybar Energi

recommendations our research, competences and technologies on renewable energy in a national, European and global context

Senter For Fornybar Energi

NTNU Clean

SINTEF Energy

IFE For

UiO All!

SFFE SFFE

Senter For Fornybar Energi

recommendations Senter For Fornybar Energi

recommendations

our research, competences and technologies on renewable energy in a national, European our research, competences and technologies on renewable energy in a national, European and global context and global context

2014

Senter For Fornybar Energi

NTNU Clean

SINTEF Energy

IFE For

UiO All!

who are we: Centre for Renewable Energy (SFFE) is an ‘umbrella organization’ created in 2004, with a common goal to create more added value for society by working together with a broas range of partners to increase the quality, efficiency and amount of education, research, development and innovation within renewable energy in Norway. SFFE is owned and financed by the partners NTNU, UiO, SINTEF and IFE.

our activities include: influencing: Our Centre engages itself and works actively towards central decision-makers, authorities, and industry to strengthen research, development and realization of renewable energy in Norway.

network building and coordination: Our Centre contributes to improved cooperation and coordination between central research groups and research institutions in Norway and internationally.

communication and information: Our Centre communicates information and contribute to increased knowledge and understanding about renewable energy in Norway.

recruitment: Our Centre contributes to promote ‘renewable energy’ as an attractive career possibility for young people.

contributors: Anita Fossdal

SINTEF

Anne Grete Hestnes

NTNU

Annemie Wyckmans

NTNU

Ånund Killingtveit

NTNU

Are Lund Arild Gustavsen

SINTEF NTNU

Arild Underdal

UiO

Arne Bredesen

NTNU

Asgeir Tomasgaard

NTNU

Bernd Wittgens

SINTEF

Erik Marstein

IFE

Espen Flage-Larsen

UiO

Gabriella Tranell Hege Brende

NTNU NINA/CEDREN

John Olav Tande

SINTEF

Magnus Thomassen

SINTEF

Martin Kirkengen

IFE

Michael Musculus

NTNU

Odd Jarle Skjelhaugen

UMB

Ole Gunnar Dahlhaug

NTNU

Otto Paans

TiC

Paul Inge Dahl

SINTEF

Petter Nekså

SINTEF

Petter Støa

SINTEF

Rolf Golombek

Frischsenteret

Steffen Møller Holst

SINTEF

Terje Jacobsen

SINTEF

Turid Worren Renaas Vebjørn Bakken

NTNU UiO

editing and concept: Gabriella Tranell & Otto Paans

A successful transition to clean and efficient energy for all

will

demand new knowledge, new technology, new solutions and new innovations, which must be implemented to meet this global challenge.

SFFE - our vi s i on a n d m i s s i o n

Energy is not just about money and economic growth. It is far more important than that. Energy is essential to the lives of the people on this planet. Because we need energy to secure essential human needs, such as food, clothing, house/shelter, transportation, health and recreation – in short all the things we need to live a good life on this planet.

By the end of this century, the countries of the world must collectively make substantial reductions in the emission of green-house gases and other strains on the environment and climate. During the same period several billon new world citizens will join around the ‘global dinner table’. So how to provide SUFFICIENT energy and CLEAN energy to ensure a peaceful and sustainable society in the future, where everybody may participate in the successful development, is one of the largest challenges facing the global society today.

A successful transition to clean and efficient energy for all will demand new knowledge, new technology, new solutions and new innovations, which must be implemented to meet this global challenge. The solutions implemented will reflect local resources and conditions.

The Norwegian partners in Centre for Renewable Energy - NTNU, SINTEF, IFE and UiO – have teamed up to play an active role in this process – by supplying the scientific and technological knowledge, innovations and people needed to bring forward new clean solutions based on renewable energy. The aim of this 2014 report is to share our views on approaches to sustainable energy development, important research topics and policy needs.

our common vision is:

sufficient, clean and efficient energy for a sustainable and peaceful society

‘clean energy for all!’

con te nts To w a r d s n ew s o c i e t a l h o r i z o n s

S u s t a i n a b l e e n e r g y s y s t e m s

12

14

T h e g r e e n s y s t e m 1 8

W i n d p o w e r 2 0

H y d r o p o w e r 2 4

M a r i n e p o w e r 2 8

S o l a r e l e c t r i c i t y 3 2

G e o t h e r m a l p o w e r 3 6

P u m p e d s t o r a g e h y d r o

39

B i o - e n e r g y 4 2

B i o r e f i n e r y 4 6

H e a t p u m p s 4 9

T h e r m o - e l e c t r i c i t y 5 2

B a t t e r y t e c h n o l o g i e s

54

H y d r o g e n a p p l i c a t i o n s 5 6

E n e r g y e f f i c i e n c y i n t h e i n d u s t r y

60

Tr a n s p o r t 6 2

B u i l d i n g e f f i c i e n c y 6 7

S m a r t c i t i e s 6 9

con te nts Measures for sustainable societies

74

N o r w a y a s a p r o v i d e r o f f l e x i b i l i t y

76

T h e p o l i t i c a l d i f f i c u l t y

78

G r e e n i n g t h e e c o n o m y

80

N ew r e c o m m e n d a t i o n s f o r p r o g r e s s

N o r w a y a s a c o u n t r y

82

84

N o r w a y i n E u r o p e 8 6

N o r w a y i n t h e w o r l d

88

E n d n o te s

90

C re d i t s

92

12

towards

new societal horizons

13

There are different possible pathways to a low carbon economy. Clearly, no single measure or technology will suffice, and the precise mix in each country will depend on the particular combination of political choices, market forces, resource availability and public acceptance.

- EU SET Plan, 2009

14

s u s tainable en ergy s ys tems

Education, research and development perspectives in a global context

Renewable energy will in the near future become available for an increasing number of people.

This positive development takes place in a competitive environment, so in order to maximize the benefit for all, careful planning is needed.

With the projected global population growth, the energy

renewable energy research and education have high

demand will increase to provide for essential human

ambitions for what they would like to achieve and

needs such as food, materials, heating, cooling and

contribute in Norway, in Europe and the World in the years

power to carry out mechanical work. Coupled to the

to come towards these goals. Education and research in

Intergovernmental Panel for Climate Change (IPCC) [1]

the energy area are closely connected to contemporary

and other organizations serious outlook for the global

societal- and economic needs, as well as to industrial

climate, it is apparent that large, fundamental changes

agendas. As renewable energy technology sees a hard

have to take place in the energy system in the very near

global competition, national business interests direct us

future to slow the rate of GHG emissions. The transition

to focus science and technology development on areas

from a linear economy of waste to an energy efficient

where we are strong enough to compete internationally.

circular economy has to be made in the coming decades.

As acknowledged by the International Energy Agency

That being said, unexpected scientific discoveries or

(IEA) [2], these changes cannot take place by the growth

market developments may quickly turn the focus around,

in single green technologies alone but rather through a

emphasizing that fundamental and ‘blue-sky’ research

holistic interplay between sustainable energy generation

is a prerequisite for radical innovation and adaptation.

and storage technologies, a restructuring of economic

The figure on the right page illustrates the value chain

systems and incentives – ‘greening the economy’ and by

for competence development, innovation and value

human behaviour in terms of energy use/savings.

creation and the roles of different actors to achieve this value chain under the stimulation and constraints

Said in another way - at the same time as we implement

of societal needs and political measures. In Norway, the

new renewable energy sources, we must ensure that

R&D institutions have access to a variety of instruments

we do it in an efficient way, in a more energy efficient

in partnership with commercial actors along the path

society. Recently conducted scenario studies of energy

from basic research towards commercialisation. The

mixes for future electricity production to minimize global

increase in national resource allocation through the FME

warming 2, 4 or 6 degrees respectively illustrate (next

centers has built a solid Norwegian R & D platform that

page) the need for a mix of renewable energy sources,

has placed Norway on the international map and made

energy efficiency and Carbon Capture and Storage (CCS)

us interesting as partners for project- and commercial

- all in great global scale, with corresponding market

development. The SFFE partners are active in the

opportunities for technology and knowledge industry.

majority of FME centres as well as in a wide range of other important science and technology areas within

Norwegian scientists and leaders in various areas of

energy generation, conversion, storage and use.

15

Connections between research, industry and market

societal needs

actors

instruments

deliverables

<<

>> basic research

maintain and develop critical competences

>>

theses, theory and ideas

exchange

>>

studies & reports laboratories & cases

exchange

researcher projects, postdoc, PhD, SFF

<<

universities and university colleges

KPN, FME, SFI industry-PhD, tax-deductable research, FORNY

<<

universities, university colleges and research institutes

research institutes, consultants

applied research

stimulate towards active research

demonstration

secure access to results and implementation

>>

demonstration and test riggs/sites

exchange

tax-deductable research, SFI, IPN, contract research

<<

>>

validation, prototyping/pilot

exchange

NCE, OFU/IFU, BIA, RCN, Innovation Norway

<<

commercialization

secure realisation of solutions that meet the industry’s needs

value chain of competence development innovation and value creation

Concept by Hege Brende, adapted by Otto Paans and Gabriella Tranell

suppliers

16

s u s tainable en ergy s ys tems

Main topics of this report

This report is structured along four main themes: production, conversion, storage/distribution and end use. Each of these four main themes will be dealt with in a number of chapters. This overall structure is connected in what we call ‘The green system’, a metromap-like structure that links these four themes together into a coherent structure.

R es ou rces a n d p ro d u c tio n •

Wind Power: Expanding on existing expertise and market development. Supported by FME Centres NOWITECH and NORCOWE.

•

Hydro Power: Careful exploitation of an abundant resource. Power production and energy storage. Supported by FME Centre CEDREN.

•

Solar energy: Solar electricity – the fast mover. Supported by FME Centre Solar United.

•

Bio mass: Production of chemicals, fuels, combined power-heating. Supported by FME CenBio.

•

Geothermal power: Deep drilling technology (experience from offshore oil and gas).

Con vers i on •

Heat pumps using new cooling media to utilize renewable ambient heat for heating purposes in houses and to make industrial processes more energy efficient.

•

Biorefineries to produce fuels and chemicals.

•

Thermoelectric elements to convert thermal gradients to electricity.

S t orage an d tr a n s p o r t •

Batteries to store energy on large and small scale for stationary and mobile uses.

•

Hydropower system.

17

•

Hydrogen as an CO2-free energy carrier.

•

Smart electric energy transportation and distribution (Smart grids).

E n d u se •

Energy efficient Buildings Integrating engineering, materials and building concepts. Supported by FME Centre Zero Emission Building (ZEB)

•

Smart Cities – Interacting with the built environment Optimized energy efficiency and attractive outdoor spaces customized to local conditions. Systems for optimized management of energy demand, production and storage. Solutions for production of decentralized renewable energy in the urban infrastructure Solutions for increased energy efficiency through synergy with systems for water and waste management.

•

Industrial Use – Efficient Utilisation of waste heat.

•

Transportation based on electricity and sustainable chemicals/gases (Biofuels/Hydrogen)

•

Political, Economic and Societal Energy Aspects are supported by FME´s CenSes, CREE and CiCep

The figure below visualises the main topics and subtopics of this report. In the figure on the following pages, an envisaged, interconnected green energy system based on these main topics and subtopics is illustrated. As with any modern ‘metro system’, it is possible to get from point A to B following several different paths – with a green result!

S F F E

r e p o r t

1

2

3

4

5

production methods

conversion

storage and distribution

end use

influences

wind power

heat pumps

battery technologies

energy efficiency in industry

sustainable energy systems

(pumped storage) hydropower

thermo-electricity

hydrogen applications

transport

providing flexibility

solar electricity

bio-energy

building efficiency

political frameworks

smart cities

green economy

geothermal power

biorefinery

18

t h e g re e n s ys tem

Resources, production methods, conversion, storage, distribution, end use and goals

S F F E

goals

resources

r e p o r t

1

2

production methods

conversion

wind power

electricity

(pumped storage) hydropower

heat pumps

marine power

thermo electricity

solar electricity

heat

geothermal power

bio-energy

wind

fresh water reduced resource use

tidal waves reduced emissions

sun energy effiiciency

geothermal heat

biorefiner y

biomass

19

3

4

5

storage and distribution

end use

influential factors

batter y technologies

hydrogen applications energy effiiciency in industr y

sustainable energy systems

transpor t

providing flexibility

building effiiciency

political frameworks

smar t cities

green economy

district heating

pellets

biofuel

chemicals

20

w i n d powe r

Expanding on existing expertise and market developments

The utilization of wind power is rapidly growing on an international level. Increasing the investments, research opportunities and demonstration opportunities for wind power will greatly benefit the Norwegian position on a European and global level. Especially offshore wind farms present great potential. To succeed, Norway needs to set ambitious R&D targets to face the global competition.

Offshore wind energy represents a golden opportunity

and connected to the transmission grid with a joint

for Norwegian developers and suppliers in the

transformer station. Wind farms may range from a few

international market. The market is large and growing

tens of MW onshore to GW sizes offshore.

with major developments in the North-Sea, mainly

The globally installed wind capacity was 282 GW by

within UK and Germany waters, but also expanding

end of 2012, of which about 5 GW was offshore. The

outside Europe with especially China, Japan and USA

development is rapid, about 45 GW of new capacity was

having ambitious targets. Norway has a strong standing

installed in 2012 [1], and predicted to continue: IEA [2]

in this development building on expertise within the

assumes in their scenario for limiting the global heating

energy and petro-maritime industries and with the FMEs

to 2 degrees Celsius that wind farms shall provide for

NOWITECH and NORCOWE as spearheads for research.

about 15% of the global electricity generation by 2050,

Nevertheless, the international competition is strong

roughly corresponding to a total of 2000 GW of installed

with ambitious programmes for development. Thus, to

wind power. Large areas with good wind resources

progress as a competitive supplier and offshore wind

offshore, and increasing pressure on land space, indicates

farm developer in the international market, Norway must

that a significant part of this will be offshore, possibly

enhance research and industry incentives, including a

overtaking the land-based development. In Europe alone

strong programme for testing and qualification of new

the goal is 150 GW of offshore wind capacity by 2030.

technology. Wind power on land is more mature in terms

[3] Statoil and Statkraft are active as developers in the

of market and technology, but still with potential for

UK offshore market with Sheringham Shoal (317 MW)

research, albeit less compared to offshore wind power. t

in operation, Dudgeon (402 MW) in development and Doggerbank (9-13 GW) in planning.

| Te c h n o l o g y S t a t u s The installed wind capacity in Norway is 704 MW (2013) On- and offshore wind turbines are today very similar in

giving an annual generation of about 1.5 TWh, all onshore

design, basically all according to the classical horizontal

except for the floating wind turbine HyWind (2.3 MW).

axis wind turbine (HAWT) concept. Unit sizes are up to

The possibilities and interest for development of new

7 MW with rotor diameters approaching 160 m, but also

wind farms are significant; alone on the west-coast of

larger units are in development. Wind farms constitute

Mid-Norway building permits are granted for installation

a number of wind turbines grouped together, typically

of 1.7 GW of wind farms. In total the expectations is 7-8

with some 5-10 rotor diameters between each turbine,

TWh of wind generation in Norway by 2020, all to be

21

realized as part of the joint Swedish-Norwegian green

efficient strategies and technologies for O&M and better

certificate market, ref. www.vindportalen.no. Likely these

solutions for grid connection and system integration are

will all be onshore wind farms, though the offshore

significant areas of research. There is also a need for

potential is huge. [4, 5, 6], but presently with significant

increased knowledge about wind and wave conditions,

higher cost of energy than land based wind farms. The

and better models for wind farm design with reduced

costs of energy from offshore wind farms vary currently

uncertainty and high yield.

between NOK 90-120 cents/kWh, compared to NOK 5060 cents/kWh on land. [8] Significant cost reductions

A main challenge in developing larger turbines is that

are however expected. The industry goal is 20-40%

the tower top weight increases more or less with the

reduction by 2020 and 50% reduction in costs of energy

cube of the rating, thus innovations are required for

from offshore wind farms by 2030. [7]

larger lightweight designs. Better models, use of new materials, improved blade designs and new generator

The industry for wind power on land is dominated by

concepts are key areas of R&D.

large wind turbine manufacturers such as GE (USA), Vestas (Denmark), Siemens (Denmark/Germany), Enercon

Grid connection and power system integration are

(Germany), Suzlon/REpower (India), Gamesa (Spain) and

challenging both on land and offshore. For on land

Goldwind (China). Norway has one wind turbine supplier,

wind farms, it is often so that good wind resources

Blaaster, currently testing their new direct drive 3 MW

and available land are in proximity to relatively weak

turbine at Valsneset test station for wind turbines. Other

electric grids, hence limiting the exploitation of the

Norwegian companies are involved in planning and

wind resource. Large offshore wind farms far from shore

resource assessment, site preparations and installation,

requires connection by HVDC associated with significant

grid connection and operation and maintenance (O&M),

costs and limited experience. On this, there is significant

though mainly for the Norwegian market only. For

international interest in developing an offshore grid with

offshore, the wind turbine suppliers play a less dominant

transnational lines serving both power exchange and

role as installation, substructures, grid connection and

connecting offshore wind farms. R&D efforts are prone

O&M constitute major parts typically handled by separate

to provide for large cost savings and reduced risks in grid

companies. In this market, Norwegian suppliers of goods

connection and power system integration.

and services have a strong international standing with companies like Fred Olsen, Aibel, Reinertsen, Owec Tower,

Operation and maintenance are particularly challenging

Olav Olsen, Nexans, Fedem, Fugro OCEANOR, Kongsberg

offshore. More resilient designs with less need for

and DNV GL. HyWind, the world’s first floating turbine

maintenance and repairs, systems for reducing need

in full scale was developed by Statoil, and the research

for access and vessels capable of accessing turbines in

centres (FMEs) on offshore wind NOWITECH and

rough weather are key areas of R&D.

NORCOWE deliver research of high international calibre.

In total some 150 Norwegian companies are engaged in

Development of wind turbine and wind farm control

the offshore wind market. [8]

systems is considered a promising area of research. Wind turbine control systems may be developed for better

Challenges

mitigation of loads and reduction in unwanted swings, whereas wind farm control can be made more advanced

The main challenges can be summarized as to achieve

for optimization of production taking into account wake

cost reductions, better integration in power system and

propagation, loads and grid requirements.

environment, and development of the supply industry.

Development of larger and more robust turbines

Substructures for offshore wind turbines are available

especially adapted to the offshore environment, new

for both bottom-fixed and floating turbines, but only with

and better substructures and installation methods, more

very limited experience for water depths exceeding 50

22

meters. There is a need to develop substructures capable

supplies that over the next few decades can become

of carrying larger turbines, and systems that makes the

comparable to the oil and gas supply industry. In Europe

installation process robust towards weather conditions.

alone expected investments are in the order of NOK

The latter may include development of new vessels able

1.000 billion for the construction of offshore wind farms

to operate in more harsh conditions or it may be new

over the next ten years. However,

concepts that can be assembled on shore. Concepts that

competition is strong, and the advantages we have from

require a minimum of offshore installation works are

our petro-maritime experience have limited duration.

prone to reduce risks and costs. Marine operations are

We therefore need a shift of priorities in our efforts to

considered a critical factor with significant potential for

establish an effective program for the development,

improvements through research and lab scale testing.

testing and demonstration of offshore wind farm

the international

technology. This is needed for the development of A major challenge for developing an offshore wind

technology and expertise that can reduce the cost of

supply industry in Norway is the lack of a home market.

offshore wind energy and secure future Norwegian knowledge-based deliveries to the international market.

Outlook

There are also opportunities and research challenges related to land-based wind power that should be

Offshore wind stands out to be a market in which

addressed, albeit the potential and effort proposed is

Norwegian industry has the potential to develop large

less than for offshore.

23

R&D recommendations:

• Establish test and demonstration

policy recommendations:

• Establishment of test and

projects on offshore wind energy, both

demonstration projects on maritime

fixed and floating turbines, with a total

wind energy, both for fixed and

size of 100 MW or more.

moving turbines, with a total size of 100 MW or more.

• Reinforce and continue the public support for the FMEs as spearheads

• Establish a regulatory framework that

for research on offshore wind in the

makes development of windfarms

international market.

attractive.

• Increase public funding for basic research, PhD education, and development of high risk-high gain ideas.

24

hyd ro powe r

Careful exploitation of an abundant resource

Hydropower will play a pivotal role in Norway’s energy supply in the forseeable future. By many, it is regarded as a mature technology that is an accepted sustainable alternative to fossil fuels. However, technological, societal and environmental developments require new research trajectories focused on the construction and optimal operation of hydropower systems.

Norway has during more than 100 years gained

a major hydropower producer, and occupies the sixth

considerable expertise in hydropower in all areas,

position in the world, behind China, Brazil, Canada, the

such as hydrology, environmental impact, construction,

USA and Russia. Developments in recent years have

and production as well as maintenance of mechanical

been

and electrical components and ways of operating. These

plants in Norway (here defined as power plants below

competences apply to both large and small hydropower

10 MW). The development of more small hydropower

plants. Especially, Norway has been a pioneer in

plants is expected to continue towards 2020, as there

the construction of underground hydroelectric plants.

are currently hundreds of applications processed by NVE.

Approximately 60% percent of the energy consumed in

In addition to this expectation, there is a growing effort

Norway has been generated with hydropower. Although

in upgrading and refurbishment of older power plants, a

about 40% of the consumption is still generated by fossil

need that will increase sharply in the coming years, with

fuels, the utilization of hydropower remains a significant

a rapidly ageing fleet of power plants.

mainly focused

on

small-scale

hydropower

part of the national energy market. By 2020, renewable energy share will increase to 67.5%, reducing fossil fuels

Of the 1393 hydropower plants in operation 1/1-2012

share to 32.5%. It is assumed that Hydropower will

(30.008 MW), 540 plants have a capacity of less than

constitute a large part of this increase, together with

1 MW, 520 plants have a capacity that varies between 1

wind power.

and 10 MW and 333 plants have a capacity that exceeds 10 MW. The total generation capacity for all 1060 plants

Te c h n o l o g y s t a t u s

below 10 MW is about 8 TWh/year, while the 333 power plants with a capacity above 10 MW possessed a

The electricity power system in Norway in 2012 had

generation capacity of 122 TWh/year. Including new

a total capacity of 30.170 MW and an average annual

generation capacity put into operation in 2012 and 2013,

generation of approximately 130 TWh, accounting

and projects under construction, the existing capacity

for about 99 percent of total renewable electricity

increases to 31.500 MW and 132.6 TWh/year.

production. Since then, 600 MW (0.9 TWh) new capacity has been put in operation, and additional 750 MW (1.7

An

TWh) is under construction.

hydropower system is its large storage capacity,

important

characteristic

of

the

Norwegian

approximately 84 TWh, equivalent to 65% of the Seen from an international perspective, Norway is

annual

production. This represents almost 50% of

25

all electricity storage capacity in Europe, and offers

impacts, social acceptance and the challenges in a

great flexibility in production capacity. Regulated

changing climate. Internationally, there has been little

electricity production from hydropower is an ideal base

focus on research in the hydropower sector, probably

to complement and balance the other unregulated

because this has been regarded as a mature technology,

renewable electricity generation technologies, such as

and because other renewable energy sources have been

solar and wind power. The flexibility in the regulation of

given higher priority. For Norway, where hydropower

hydropower can help to ensure quality delivery of such

will account for the bulk of the energy supply in

renewable energy sources and thus increase the overall

the foreseeable future, it therefore is a challenge to

production capacity and security of supply.

provide expertise to build, operate and develop the hydropower system under new conditions both with

Challenges

respect to climate, market, environmental and social acceptance. The Energi21 process identified a number

Although hydropower technology is a mature technology

of key research challenges for the hydropower sector,

in many areas, there are still significant research

focusing on hydropower’s role in balancing power

challenges related to the long-term build-up and optimal

towards Europe. Challenges and research needs are also

operation of the current system. This applies not only

discussed in the “Energy report” (NOU 2012:9) and in

to technological solutions, but also to environmental

NTVA’s Energy Strategy 2013-2017.

26

peaking capacity or equipped with reversible pump

Outlook

turbines utilizing existing upper and lower reservoirs.

There remains at present an untapped hydropower

Here, the output potential is very large, exceeding a

potential of about 34 TWh/year in Norway, within a

capacity 20.000 MW.

development cost of 3-5 U.S. $/kWh, in addition to the approximately 50 TWh/year in rivers permanently

The hydropower sector (manufacturing) included 779

protected

development. The

companies with 10.897 employees in 2010, with a

potential for small plants (below 10 MW) is approximately

total value of 32.1 billion. This value chain includes

25 TWh/year. Currently, the construction or development

technology delivery, planning/engineering, development

permission has been granted for plants realizing a

and production of power. In addition to value added in

production of 3.7 TWh, while applications for a further

energy production, this also helps the supply industry,

7.4 TWh, are being processed. For larger plants (plus

consultancy and R & D institutions to create value in

upgrading and expanding existing power plants) there

the energy sector, which in hydropower amounts to 2.3

is a potential in the order of 7 TWh. In addition, many of

billion NOK in 2010. (NOU, 2012:9)

against

hydropower

the existing power plants may be redesigned for higher

27

R&D recommendations:

• Mapping and improving the

policy recommendations:

• In order to prevent Water Resource

understanding of the environmental

Conflicts, relations with the EU

impacts of river systems by changing

Water Framework Directive and the

operating conditions.

Floods Directive need to be established and improved.

• Design and construction technology for waterways under changed operating conditions.

• R&D focused pumped storage hydropower.

• Establish a new regulatory framework for the utilization of hydropower.

• Market design for hydropower use as balancing services.

• Efficient maintenance and refurbishing strategies for hydropower systems.

28

m a rine powe r

The emerging potential of tidal wave energy

Tidal waves generate enormous amounts of power, but this potential is rarely harnessed. New research and technological innovations gives an optimistic outlook for this way of producing renewable energy. Although the absolute production capacity for Norway is limited, Norwegian offshore expertise can be utilized to play an important role in this emerging field.

When the wind energy over the sea is transformed to

be a key investigation area for development globally.

wave energy, the energy density is increased. Just below the ocean’s water surface, the wave energy flow, in time-

Along the Norwegian coast the level of wave energy

average, is typically five times denser than the wind

transport is at 20-40 kW/m. The theoretical potential can

energy flow 20m above the sea surface, and 10 to 30

be calculated to approximately 400 TWh/year. However,

times denser than the solar energy flow.

only a part of this potential energy will be feasible for harvesting and a realistic estimate is close to 8 TWh/

Various technologies are utilised to convert the

year.

waves’ potential energy or forward kinetic energy into electricity. Devices include attenuators, pitching devices,

Te c h n o l o g y s t a t u s

oscillating wave surge converters, overtopping devices, point absorbers, submerged pressure differential devices,

The technology for wave power plants is still in early

and oscillating water columns (OWC). The most common

stages of development, and further research initiatives

technology used is the oscillating water column, in

are necessary. Pioneer work was carried out in the 80s,

which the wave, while cresting and toughing in a fixed

especially in Japan, Great Britain, Sweden and Norway.

housing chamber, displaces air at a regular pace. This

An overview of the Norwegian work from this time

air flow is directed to a turbine to generate electricity,

can be found in White Paper nr. 65 (1981-82) from the

in a manner quite similar to how wind turbines extract

Norwegian Storting, and in the review paper; ‘Wave energy

energy. A number of OWC devices have been constructed

utilization: A review of the technologies’ from 2010 written

in countries including China, India, Japan, Norway, and

by António and Falcão. Many different concepts for wave

the UK.

energy harvesting have been suggested. Over the last fifteen years there has been more commercial focus, and

Some commercial actors estimate that wave power

some of the largest energy companies in Europe have

could produce between 200 and 300 GW, using the most

invested in wave energy projects. Many countries offer

promising sites worldwide. If more areas were exploited,

stimulating economic conditions, and more test facilities

this estimated potential could be even higher. And since

for wave energy have been established, for example at

the waves producing the highest levels of energy are

the Orkneys, in Great Britain and in Portugal. Wave farms

found close to densely populated regions, including

with a total installed capacity of 170MW are actively

Western Europe, Canada and the USA, wave energy could

under development in Scottish waters.

29

The British work has resulted in wave power technology

power device in harm’s way carries a reasonably high

like Pelamis

which in 2004 was the world’s first

chance of having it torn apart by the very waves it’s trying

prototype of commercial scale to generate electricity to

to exploit. The necessary capital investments are huge

a national grid from offshore waves. The Pelamis device,

and the time to get to a commercial product is often

being developed in Edinburgh and tested off Orkney, is

longer than anticipated. The technology development

like a sea-snake, using hydraulics, a large scale device

faces significant struggles to find financial and political

optimised for off-shore installation where there’s more

support with patience and long-term perspectives to see

turbulence than near-shore, and waves come from

wave power devices through to commercialisation.

different directions. In 2009 the second-generation Pelamis machine, P2, was launched. The P2 design

Some estimate that only 155 TWh/year of tidal energy is

machine has been sold to utility customers E.ON and

extractable worldwide. Limiting factors include financial

Scottish Power Renewables and are currently tested for

considerations, the infeasibility of power stations

a number of commercial scale projects.

in certain areas, electricity transmission issues and efficiency concerns.

Following model tests in 2010, AWS Ocean Energy is working towards a full-scale 2.5 MW prototype of its

From 1973 Kjell Budal established a group for wave

Wave Energy Converter named AWS III. The device is

energy research in the Department of Physics at NTNU,

based on air-turbines using floating platforms that

and SINTEF also got involved. The wave laboratories

convert wave motion into pneumatic power. A full scale

of NTNU came to good use in the testing of various

demonstrator is planned to be tested in 2014, with full

models. Among the models tested were the concept

commercialisation to follow.

from Kværner Brug, installed in Øygarden in 1985.

Another test plant was built in the same place, based on

Aquamarine Power’s Oyster (part of SSE Ventures)

the tapered channel concept, developed in cooperation

wave power technology captures energy in nearshore

with at predecessor of SINTEF.After the oil crisis in

waves and converts it into clean sustainable electricity.

the 1970s, the energy prices fell and the funding for

Essentially Oyster is a wave-powered pump which

wave energy research were reduced. The Norwegian

pushes high pressure water to drive an onshore hydro-

development stalled, but some activity has now been re-

electric turbine.

established. After 2003 we have wave energy research at the NTNU-connected institutions CeSOS as well as in

In Norway the Storm Buoy from the company Ocean

various departments connected to construction, power

Energy is a concept that addresses the challenges of

engineering, energy engineering and industrial economy.

extreme stress caused by offshore conditions that the machinery must handle by automatic submersion of

Outlook

the buoy floating on the surface. With collaboration with Seabased AB in Sweden a full scale pilot is to be

Renewables are expected to produce 30% of Europe’s

tested on the Centre for Ocean Energy at Runde in the

electricity by 2020 according to EU targets. At the world’s

in Norway. Further testing in Gran Canaria is planned in

scale, in 2050, 77% of the world’s energy supply could be

collaboration with the Spanish research institute Plocan.

covered by the renewable energies. In this context, the development of wave energy has a bright future. Over the

Challenges

last fifteen years there has been more commercial focus, and some of the largest energy companies in Europe

Off the coast of Orkney the wave conditions can be

have invested in wave energy projects. Many countries

extreme and the waves carry five times the energy

offer stimulating economic conditions, and more test

density than wind. And add to this the corrosive salt

facilities for wave energy have been established, for

water. It’s a stressful environment. Putting your wave

example at the Orkneys, in Great Britain and in Portugal.

30

Wave farms with a total installed capacity of 170MW are

the wind, and the energy density is higher. The main

actively under development in Scottish waters.

technological challenges are connected to the harsh environment that sea water represents, e.g. installation

Tidal energy The revolving of the earth, moon and sun creates tidal

of the turbines in tidal streams and fatigue load from waves .

differences in the sea level. Tidal energy takes advantage of the energy that is created from the variation of the

Similar to the deployment of wave energy, tidal power

water level from ebb to flood, or from utilizing the fast-

projects are in need of large capital investments

flowing tidal streams that exist at some locations. The

and renewable incentive mechanisms in order to be

tidal barrages are dams that rely on the twice daily cycle

economically feasible. The technologies are immature

of the tides. They impound water at high tide, and let

and largely under development in relation to scale, LCOE,

the water ebb out through turbines at low tide. This

operation and lifetime.

type of ebb generation is generally reliable, but cannot occur continuously as power generation is limited for

A prototype of a tidal water turbine has been installed in

to less than 12 hours a day. In addition to harvesting

Hammerfest in northern Norway by Hammerfest Strøm

energy from tidal barrages, we can also derive energy

in 2003. This was the first tidal turbine utilizing the

from tidal and marine currents. The tidal stream is

tidal current that connected to the electrical grid. The

driven by changes of the tides while the marine currents

experience gained from this prototype lead to the the

by the global oceanic circulation and seawater density

development of a new prototype which is 1 MW, This

variations. Current technologies to extract tidal stream

turbine has been tested in 2012 at the European marine

power include horizontal and vertical axis turbines,

energy center, EMEC located on the Orkney Islands.

venture devices, and oscillating hydrofoil devices.

NTNU and SINTEF were involved in the development of Tidal power has an energy concentration of 500 to

a tidal turbine in cooperation with Hammerfest Strøm

1000 W/m on the Norwegian coast, and the Norwegian

from 1998 to 2008. The turbine blades was designed

coastline has many narrow and deep fjords where the

and model tests were carried out at NTNU in Trondheim.

tidal streams are very strong and with higher energy

The prototype has been installed in Kvalsund outside

density compared to i.e. wind streams. The technical

Hammerfest, and has produced electricity since 2003.

2

viable energy potential for production of electricity from tidal streams in Norway is estimated to 2 TWh/

Outlook

year, according to the Norwegian Directorate for Water and Energy. Thus, tidal power is not a substantial

Renewed interest in tidal energy is being driven by the

energy resource in Norway, but it can be viable in

global interest for renewable energy. Tidal energy is

certain locations, generally in the northern parts of the

an especially attractive option given its predictability,

country. However, the Norwegian competence in offshore

and impoundments are proven technology. Whereas

installations is considered to be of great value in the

freestanding underwater turbines designed to capture

development of new concepts for generation of energy

tidal currents are still being tested at the megawatt

from tidal currents.

scale.

Challenges

Capturing tidal energy using impoundments is facing increased interest in later years. In 2011 South Korean

Commercialization of technology for tidal energy is still

officials turned on a 254-MW ‘barrage’ style plant akin

quite new, and the use of tidal energy for electricity

to La Rance in France, surpassing it by 14 MW. Further

generation is still small in a global perspective. The tidal

tidal installations are in development in South Korea

streams are, however, more reliable and predictable than

and elsewhere, including the United Kingdom and

31

China.In Norway the difference between ebb and flood is not so large, but instead there is potential to utilize the kinetic energy in some tidal currents. The energy in such currents can be extracted in floating or bottomfixed turbines, which have much in common with wind turbines.

Except for South Korea, no other government in the world is really pushing tidal energy which needs massive government support at this stage of development. Small scale pilot plants are being built here and there but they will take a lot of time to become commercial in scale.

(The Massive Tidal Barrages being planned in Russia and Philippines will most probably never see the light of the day just like the Severn Tidal Barrage Project in England.)

Tidal wave energy is still a very nice technology with tidal barrages generating most of the electricity in a few power stations. Most of the tidal power plants using the modern tidal turbine technology are still in the pilot phase and generate relatively small amounts of energy.

However, tidal power stations have the potential to generate large amounts of energy in a non-polluting way. Though tidal technology is still in the infant phase of development, a number of companies are engaged in research in tidal technology and a large number of tidal stations are being built in Europe and USA.

R&D recommendations:

• New concepts for increasing efficiencies and life expectancy of wavefarms under severe conditions.

• Development of new turbine designs that utilise the kinetic energy in tidal currents.

32

s ol ar el ectr ic ity

The fast mover

Although the production and installation of solar panels has proven to be a commercially viable enterprise and a whole industry has developed around it, new opportunities as well as challenges arise for the next generation of solar cells. High efficiencies provide promising perspectives with regard to sustainability, but the PV industry finds itself at a crossroads of opposite financial, technical and environmental interests. To take the most sustainable pathway will need further research and technological development.

Solar electricity (also named photovoltaics) is a key

for about 90% of the international market and have

technology option for implementing the shift to a

increased their market share at the expense of thin film

decarbonised energy supply. Solar resources in Europe

cells in recent years. After the temporary silicon shortage

and across the world are abundant and cannot be

between 2004 and 2008, silicon prices fell dramatically

monopolised by one country. Even though PV has always

and the cost of wafer-based silicon solar cells decreased

been characterized by a huge potential, there were

very rapidly.

few people – not even 10 years ago - who would have predicted that by the end of 2012, the world would have

Commercial solar cells, and hence solar module

installed over 100 GWp solar cells worldwide.

efficiencies have continued to increase. Based on choice of wafer and solar cell and module production

With currently about 2% of Europe’s energy demand

process, efficiencies range from 12% to 21%, with mono-

generated through solar power, the growth of solar

crystalline module efficiencies ranging from 14% to

production in Europe has been enormous: 55% compound

21%,and multicrystalline modules from 12% to 18%.

annual growth rate (CAGR) over the last decade. In spite

The massive manufacturing capacity increases for both

of negative economic conditions for the solar industry in

technologies were followed by the capacity expansions

the recent years, market opportunities have never been

needed for polysilicon raw materials. Critical cost drivers,

better and the solar cells are now competitive with other

such as consumables (wear and spare parts), materials,

(non-renewable) power sources in many parts of the

and utilities are also technology drivers, to provide

world.

solutions for expensive wear parts such as crucibles (crystallization), slurry and wire (wafering) or critical

Te c h n o l o g y s t a t u s

materials, for instance: metallization pastes (cell), glass and back sheets (module), utility costs (energy plus water)

In the past 5 years, PV electricity system prices decreased

in crystallization, wafering and cell processing as well as

by over 60% in the most competitive markets, and

yield loss in wafering, cell and module manufacturing.

in an increasing number of markets the cost of PV-

Alternative solar cell technologies, particularly so-called

generated electricity is already cheaper than residential

tandem solar cells, show efficiencies up to 45% today,

electricity retail prices. As solar technologies have been

but their extent is limited by currently very high costs of

adopted, there have been major improvements and cost

production.

reductions. Currently, silicon-based solar cells account

33

34

Challenges

Outlook

The solar industry is more competitive than ever. Still,

In connection with energy efficiency in the building

the European solar industry is experiencing tough

sector, solar cells and installation technology are

circumstances, due to lower margins and oversupply.

relevant not only for the constructors, but also the end

The global industry has been marked by bankruptcies

users in Norway. This is especially important with the

and industry research budgets have been drastically cut.

introduction of future building standards with a focus

These developments affect the research sector, both in

on energy. We must improve our understanding of

terms of the size/volume of the research projects, and

solar energy resources in Norway and the effect of the

the requirements of industry participation for acquiring

Norwegian climate. It is essential that in the initial phase

state funding. Norwegian solar cell research has many

these developments will be facilitated by politicians to

advantageous features, such as its mix of short term

increase the use of solar panels in Norway.

research relevant for the existing industry and long term, high risk research towards novel materials and PV technologies.

The Norwegian PV research community has a significant expertise in solar technology based on both silicon and other PV materials as well as an extensive state-of-theart infrastructure. However, a key challenge is to preserve the investments in infrastructure and expertise, so that the academic community remains well positioned when the profitability of the solar industry returns.

For the radically new technologies, the challenge is in many cases, to demonstrate the high efficiency values that are theoretically predicted. Also, it is challenging to identify materials that are suitable to be used in a sustainable PV technology.

35

R&D recommendations:

• Increased materials research and

policy recommendations:

• Establish and/or strengthen pilot

development, for both silicon-based

and teststations to assess the realistic

systems and new material systems,

potential of PV systems in Norway and

as well as nanomaterials and-

to better understand the performance

structuring.

of stand alone and building integrated PV-solutions in Norway.

• Build on the international lead in silicon production and continue to develop environmentally friendly, cost- and energy efficient new methods for silicon production and refining.

• Develop new materials, processes and technologies for high efficiency solar cells and modules, including high quality wafers, and third generation concepts.

• Increase the activities in PV System integration, including competence building, ICT and system components, in order to prepare for the requirements from an increasing home market.

36

geot he r mal p owe r

Strategic challenges for Norwegian competences

Drilling technology has been developed mainly through the oil and gas industries, but with the shift towards sustainable forms of energy production, a new perspective develops. The expertise that Norway possesses with regard to drilling can be effectively utilized in the national and global markets, if sufficient care is given to overcoming a number of yet unsolved technological barriers.

For renewable energy it has been estimated that the

thought to have a poor thermal gradient down into the

energy reserves of geothermal energy alone exceed the

depths.

total global demand. However, the possibilities to access

Subsequent mapping and drilling samples, including

these sources outside volcanic areas are yet limited.

those from NGU, have shown that we are likely to have

Currently, drilling and well costs are some of the main

areas with higher thermal gradient than previously

obstacles that impede larger scale implementation

expected. This particularly applies to Svalbard where up

worldwide. Norway has today a leading role in

to 40 °C/km has been measured.

developing new technology for oil and gas production.

This is based on a strong industrial value chain and

In recent years there has been a fluctuating interest

the Norwegian model for research and research-based

for deep geothermal energy in Europe, partly due to

education. The combination of the industrial research

some seismic problems and lack of new cost effective

and the public funding schemes for R&D has resulted in

technologies for drilling and well completion of

an oil and gas cluster, made up of industrial companies

geothermal wells. The interest is, however, now on the

and international leading environments in universities

rise again, especially for plants that can produce heat-

and research institutes. Many players in this cluster

to-heat distribution and/or low temperature electricity.

see new opportunities in the development of technical

Geothermal

solutions for extraction of geothermal energy and related

currently harvested mainly in volcanic areas where high

industrial production of products for serving this goal.

geothermal values (300°C or higher) can be measured at

energy

for

electricity

production

is

1.5 to 3 km depth. A better utilization of this potential is Te c h n o l o g y s t a t u s

currently of great interest, particularly in Africa (countries bordering the Rift Valley) and around “The Ring of Fire”

Geothermal energy is traditionally divided into shallow

(Asia (Philippines, Indonesia, New Zealand, and Japan)

(down to approx. 300m) and deep geothermal energy.

and the Pacific coast of America).

Shallow geothermal energy is mainly derived from stored solar heat, while deep geothermal energy comes

Challenges

from radioactive fission and/or heat of the Earth. While Norway is advanced in the use of shallow geothermal

The problems related to exploitation of geothermal

heating (via heat pump systems), it has yet no deep

energy vary with geological and geographical location.

geothermal systems. Geologically, Norway has long been

In Norway, the drilling costs have traditionally been

37

the biggest hurdle for the mainstream use of shallow

exponentially due to equipment failure (materials

geothermal

changed

and electronic). In addition, drilling in hard rock lacks

significantly in recent years due to better equipment

energy. This

situation

has

technology for fast drilling (1-2 m/hr to 30-40m/hr in

and more players on the market. For deeper geothermal

sandstone). In volcanic/hot geothermal areas and at

drilling, costs outside volcanic or hoot geological areas

great well depth, chemical conditions are often also very

are currently so large that it is not possible to achieve

challenging (examples here are CO2, H2S, scale).

economic plants without subsidies (as is the case in

The geographic location of a suitable geothermal site

Germany).For deep geothermal plants, drilling and well

can be a major problem. In urban areas (most of Europe)

activities may account for 50-80% of the cost. Drilling

induced seismic activities due to geothermal plants have

and well completions are done mostly with traditional

to be avoided or minimized. In other parts of the world

oil equipment and procedures. This technology only

geothermal attractive areas may be located far from

applies sufficient to around 5000 meter depth and 200

major cities and infrastructure is poorly developed (e.g.

°C. At greater depth/temperatures the cost increases

Indonesia and Australia).

38

Outlook In Norway there is enough expertise in deep drilling and well technologies, new materials and electronics in order to develop ways and methods to facilitate the more effective use of deep geothermal energy. This position can be exploited by developing similar or new technologies as for the oil and gas industry, where for example the Node group in southern Norway is a world leader, manufacturing 80% of innovative new drilling equipment for oil and gas. The strategic challenge for Norway will be to change our technical competence and industry from oil and gas to deep geothermal energy as a major export article in the future.

R&D recommendations:

• Adaptation of existing technologies and know how (such as those in the oil and gas industry) for use in geothermal energy exploration development.

• Development of new electronics and materials for high temperatures and pressures.

• Development and manufacturing of new specialised equipment for deep geothermal drilling and well completion.

39

p u m pe d s torage hy d ro

Increasing versatility in hydropower

Hydropower is a versatile technology, and there are many ways to utilize water for energy production. Pumped hydro storage enables large-scale energy storage and thus flexibility for other, intermittent renewables. Planning and implemention of pumped storage plants could however prove to be challenging due to financial and environmental considerations.

Europe’s development of renewable energy in the EU

place of great height difference and small horizontal

is expected to increase by about 520 TWh from 2010

distance between. Construction of the new reservoir

to 2020, an estimated 305-400 TWh from wind power,

will be a significant cost if there are no natural lakes or

approximately 100 TWh from solar PV and smaller

existing reservoirs that may be used, and often creates a

amounts from bio- and hydropower. A strong continued

too large and controversial interventions in the natural

development is also expected after 2020, with visions

environment. Here the Norwegian hydropower system

of a near 100% renewable energy system in Europe by

has a big advantage because it will be relatively easy and

2050, according to the EU SET plan. Such large-scale

inexpensive to build new pumped storage hydropower

development of unregulated and highly variable power

stations without the need to build new reservoirs,

is expected to provide significant challenges to the

as would normally be required in the rest of Europe.

operation of the power system, and a growing need for

Balance power can also be produced by expanding

power generation that can cover consumption during

output capacity of a hydropower plant, without pumping,

periods of low wind and sun, so-called balancing power.

by shutting down production and collect water in the

It will also be necessary to store very large amounts of

reservoir in excess periods, and run extra hard in times

energy excess production during periods of heavy wind

of deficit. This is currently being done for example for

and sun, typically 5 to 10 TWh over periods of up to a

balancing wind power in Denmark.

week or two, which is a characteristic time scale for wind systems North Sea area.

Te c h n o l o g y s t a t u s

Since the purpose of the whole re-organization of the

Today, there are a few pumped storage hydropower

power system is to make the transition from fossil fuels

plants in Norway, but all of these are designed for

to renewable energy, we should also adopt the balancing

seasonal pumping, to allow for inflow during the spring

approach with the power coming from renewable energy

flood period in higher altitude reservoirs, and outflow

sources - such as hydropower. The most promising

production in the winter period. In Europe there are

renewable technology to meet both power and storage

about 170 pumping plants with 45.000 MW pumped

requirements for balancing power is the use of pumped

capacity, mostly aimed at balancing heat production

reservoir storage. A pumped storage hydropower station

around the clock, and therefore with very little longer

must have two reservoirs for the storage of water, an

term storage capacity. A typical European power plant

upper and a lower. These should preferably be at a

has a capacity of 200-300 MW and can pump water for

40

6-12 hours before the reservoir is full. There are specific

will be needed in the Norwegian hydropower system

plans for the construction of another 60 plants with a

in the coming years. Much of this power system was

total capacity of 27.000 MW by 2020

developed in the period from the 1950s up to 1990, and there is an ever increasing need for upgrading and

A capacity upgrade to existing power plants requires

renewal, not only for purely technical reasons but also

only one (upper) reservoir, while the power plant

because of market conditions and because society’s

should have an outlet to the sea, another reservoir or

views on environmental regulations are changing. In this

a large lake so that quick turn on/off does not create

context, the need to develop pumped-storage power

unnecessary problems below the outlet. In Norway , we

and construction of pumped-storage plants are only two

have more than 140 power plants with maximum output

of several drivers that will influence the development.

of over of 50 MW. Eighty-nine of these were part of a

Research needs for the development of the Norwegian

study of the potential for expansion of power production

hydropower system can be divided into three categories:

conducted by NVE. The power plants in the analysis

technological, market and environmental requirements.

have an average life of 3.900 hours and a total installed

Pumped storage hydro is a mature technology, but there

capacity of 17.000 MW. Doubling this capacity reduces

are special needs and challenges related to the type of

the total operating time with almost 2000 hours and a

development required for large-scale balance power,

significantly increases the operational flexibility.

with particular emphasis on finding optimal solutions for the construction and operation of large pumped storage

A survey conducted by NVE also shows that there are

power plant with long waterways under widely varying

over 100 reservoir-pairs that may be suitable for the

operating. This places special requirements on ensuring

construction of pumped-storage plants, 20 of these have

stability and opportunity for frequent adjustment

a reservoir capacity in both the upper and lower reservoir

without incurring damage to waterways and machinery.

of more than 100 million m3. Studies conducted by

Since the biggest cost will be the construction of tunnels

CEDREN for some of these plants in South Norway show

and underground spaces, it is important to optimize

that at least 20.000 MW of new capacity in technical

the planning and operation methods and ensure the

terms can be developed to produce increased power and

necessary capacity and expertise.

balancing power- while using only existing reservoirs and storage capacity- of several TWh.

The market challenges lies in developing solutions to ensure stable revenues, triggering the investments

Pumped storage hydro will generate revenue by

that are needed, both in pumping power plants and

“magnification” of unregulated power that might

transmission lines. In this context, the long planning and

otherwise be lost or sold at a low price. The development

construction time for hydroelectric power plants and

of 10.000 MW of pumped storage power plants will

transmission lines is a significant challenge. However,

require investments in the order of 30-50 billion NOK.

the biggest challenges are perhaps environmental and

In addition, investments in power lines and/or cable

in ensuring social acceptance for such developments .

connections to the continent will need to be taken into

There will be challenges and objections to such a major

account. This creates the basis for significant potential

development for the purpose of balancing production

employment both in the planning, development and

in Europe. The major conflicts are perhaps primarily

operation sectors.

related to the need for extensive development of new transmission system for power, both on land and sea

Challenges

cables. There will also be more adverse conditions in regulating reservoirs. In such reservoirs, there will be

It is important to see the development of new power

more frequent and greater variation in water levels and

and pumped storage plants for balancing power in the

studies of the effects of environmental conditions in

context of the overall renovation and upgrading that

these reservoirs is therefore an important task.

41

R&D recommendations:

policy recommendations:

• Development of a pilot project where

• Economic studies on income

an existing or new pumping plant

distribution, taxation, municipality/

will be equipped so that it can

landowner added value etc.

be actively used for research and teaching, studying and optimizing the technical solutions, both for electromechanical equipment and tunnels.

• Development of good environmental design, studies of global and local impacts and benefits.

42

b i o-e ne rgy

An all-round energy source

The utilization of biomass is currently well established, but needs to be developed strategically.

The effectiveness of conversion, the access of new areas for biomass production, as well as logistics and the interaction with fluctuating energy prices are challenges that need to be solved by more versatile means than only technological improvements.

Worldwide bioenergy is the most commonly used

There are about 100 district heating plants in Norway,

renewable energy, amounting to 15% of the total energy

producing 5 TWh of heat annually. The particle emissions

supply. In the Nordic countries bioenergy makes 20% of

are low, about 200 mg/m3 fluid gas. Also, technology

the energy consumption in Sweden and Finland, 12% in

reducing NOx emissions from non- woody wastes to a

Denmark and 7% (17 TWh in 2012) in Norway.

minimum have been developed. The energy efficiency is high, about 95% for the combustion process itself,

The Nordic bioresources are wood from forests and solid

the upstream and downstream chains not included. An

and liquid organic wastes from industry, households and

intelligent regulation system which takes the weather

agriculture. The biomass is mainly converted to heat

changes and customer behaviour into consideration can

used for heating buildings. A minor fraction is converted

help to avoid downstream waste of energy.

to electricity and liquid biofuels for transportation.

New technology and microbial knowledge has increased Te c h n o l o g y s t a t u s

the energy efficiency of biogas reactors from about 60 to 70%. Development of new thermal and enzymatic

Half of the biomass presently used for energy purpose

processes has opened for lignocellulosic biomass, which

in Norway is used in wood stoves and pellet stoves for

is hard to degrade, to be included in the biogas feedstock.

heating homes. The other half is input to district and

The biogas production in Norway is low. However, during

local heating plants and to wood processing industry.

the recent years 15 plants have been constructed or planned, some near big towns where food waste is being

Today, the wood and pellets stoves perform high energy

converted to fuel for buses.

efficiency, 80-85%, and low particle emissions, about 6 g/kg dry wood. Wood stoves may ensure heating in cold

Challenges

periods when the power is expensive and/or insufficient.

They have elegant design creating an attractive

There are three main challenges to overcome to meet the

atmosphere in the home. The trade of fire wood has so

target of doubling the bioenergy production. These are

far been without information on cost per unit energy.

the amount of available biomass, conversion efficiency

This may possibly be changed in order for the customer

and profitability.

to compare energy sources directly.

Increasing the forest biomass supply can lead to higher

43

44

logistics costs, if new areas are more difficult to access.

year is a realistic target, mainly based on forest feedstock

More efficient logistics can hardly eliminate the cost

without compromising sustainability.

increase, and higher feedstock price may be the result.

Increasing the municipal waste supply is closely linked

Europe is short of biomass and Norway, with its large

to public regulations and political decisions. Here the

forest biomass reserves, can play a role as supplier.

political power on municipality level is the main driving

International trade of chips, wood residues and pellets

force.

may grow due to the EU RES 2020 target. The highest growth is expected in wood fired CHP mills using

Improving efficiency means to match the characteristics

logging residues and wood pellets. To obtain best price

of the biomass feedstock (fire-wood, wood chips, pellets,

and minimum transportation costs, the energy density of

wastes) with the characteristics of the technology used

the biomass products must be high.

for energy conversion, and vice versa, calling for close collaboration between the biological and technological

The maximum biogas energy production in Norway is

sciences.

calculated to 6 TWh/year. Assumed improved profitability and energy efficiency one third of this potential might

The profitability for the district heating industry depends

be realized, as approved by the Ministry of food and

on electricity price, as stated in public regulations. This

agriculture.

means that low el-price gives low profit for the bioenergy sector. Persevering low price is a serious problem,

Another interesting possibility is to develop ‘smart energy

especially for new plants with high investment costs.

technology’ for industrial clusters – where energy is utilized by different industries within a local community

Realising a medium or large biogas plant involves

that may cooperate to provide and share electricity,

many stakeholders upstream and downstream, leading

heating and cooling in a smarter and more efficient way.

to collaborative and contractual challenges. Each stakeholder needs to quantify its profit and see its role in the consortium.

Outlook The worldwide potential for increasing energy production from forest virgin biomass, agriculture residues and waste is large. In Norway a doubling to about 30 TWh/

45

R&D recommendations:

• Analyse the profitability for the forest- to-heat value chains.

• Analyse the energy efficiency and the profitability for small and medium biogas reactors.

• Develop bioenergy systems for low energy house standards.

• Identify links between bioenergy and other energies to ensure sufficient heat supply throughout the year.

• Describe bioenergy climate and environment impacts.

46

b i ore fine r y

Integrated production of chemicals and fuel

Production of biofuels and chemicals in an integrated biorefinery concept is commercially and technologically viable. In order to develop sustainable and effective methods of production, value chain analyses should be high on the agenda.

The production of biofuels continues to be a substantial

thermochemical conversion. Biochemical technologies

part of a strategy towards a more sustainable society and

include fermentation of biomass to biogas, bio-ethanol,

economy. Its importance is already being recognized by

bio-butanol or chemicals; whereas thermochemical

the International Energy Agency by establishing the goal

processes include pyrolysis and gasification of biomass

that in 2050, biofuels should fulfil more than 25% of the

combined with catalytic processes for the production

global demand for transportation fuels in order to reduce

of liquid fuel (diesel or jet fuel) from synthesis gas

the dependency on fossil fuels. Development in Europe

or pyrolysis oils. Currently, the commercialization of

targets the production of biobased fuels from non-food

biogas production is an ongoing process, however

sources and require a profound knowledge of advance

the production of liquid biofuels is mainly focused on

conversion technologies. The Norwegian industries,

first generation sources which are corn (in the US) or

universities and institutes have built up a considerable

sugarcane (in Brazil) for the production of ethanol.

knowledge on the production of fuels and chemicals from fossil fuels. This generic knowledge on advanced

Currently, processes are being developed for the

conversion technologies offers a strategic opportunity for

simultaneous production of both biofuel and chemicals

Norway in terms of collaboration, exchange of expertise

to improve the efficiency and profitability of biofuel

and the development of production technologies

production,

to ensure cost efficient and environmentally sound production of biobased fuels and chemicals.

This trend is analogous to existing refineries based on fossil oil. The technology of integrated bio-refineries

Te c h n o l o g y s t a t u s

for simultaneous production of biofuels is currently under

commercialization with a corresponding need

So-called first-generation biofuels (such as bioethanol

for comprehensive innovation through research and

and biodiesel) are being produced from sugar, starch

development. The EU has set as a target that 10%

and oily seeds in plants and are commercially available

of the fossil fuels have to be replaced by biofuels

in many countries around the globe. Second and third

by 2020. Norway has set similar goals for 2020. As of

generation biofuels are made from other sources, such as

today, biofuels cover approximately 4.3% of the total

wood, waste from agrarian activities, marine biomass and

Norwegian fuel production.

whole plants. This type of production is based on several key conversion technologies such as biochemical and

The energy consumption in the Norwegian transport

47

sector approximates 60 TWh/year. The Norwegian biofuel production areal growth rate is generally too low for profitable production of first-generation biofuels, but smaller amounts of biodiesel are being produced from rapeseed. Second generation biofuels can be produced from wood or marine raw materials such as macroalgae., which have a much larger potential production and thus a greater utilization potential but are as of yet not commercially produced as biofuels. Borregaard has a small but technically advanced production of approximately 20-25 Ml Bio-ethanol, of which only just 2Ml is utilized in Norway. The potential for the use of self-produced biofuels in the EU is estimated to be around 25-30%. To date most of the consumption is covered through imports from countries such as Brazil.

The market for biomass-based chemicals and materials is growing rapidly. Generally, chemicals that are produced from fossil raw materials can also be produced from biomass. On the world market, sales of around 25 Billion US$ for bulk chemicals are expected, approximately 10 Billion US$ for fine- and specialty chemicals and about 3 Billion US$ for bio-plastics by 2015 with a potential 10% increase in production per year.

Challenges A major non-technical challenge for the emerging industry is the competition with other uses of biomass.

Larger withdrawals and use of biomass for refinery and energy production will affect other market segments such as pulp and paper industries and thus the price structure. Production of both terrestrial and marine biomass for production of second and third generation biofuels must be sustainable to maintain biodiversity.

For the efficient production of biofuels and chemicals advanced integrated systems need to be developed which consider optimal utilization of both chemicals, electricity and heat. Currently, both necessary technological innovations and economical aspects can be considered as challenges. New optimized and sustainable processes will

require

extensive

innovative

solutions.

An

optimization of the product portfolio combined with the development of new cost and energy-efficient processes

48

and treatment technologies are key challenges for both

demonstrate their feasibility and profitability. Potential

thermo chemical and biochemical production.

effects on the environment and emissions should be investigated to ensure that the processes that are being

Outlook

developed are truly sustainable. A strategic chance is the development of large, fully integrated processing

Although the future for biomass based fuels and chemicals

plants that accommodate advanced energy efficient

is certainly bright and many possibilities will open up

conversion systems which enable the development of

due to technological advancements, specific research is

various value chains in parallel. This strategy will allow

necessary to ensure its effective production. Value chain

for the evolution of expert knowledge and the creation

analysis is one of the main topics that deserve further

of economic development by generation of advanced

research. The conversion of raw materials to an industrial

production technologies within a European framework.

feedstock, the conversion from biomass to chemicals,

Further, such development will reduce the dependence

biofuels, heat and electricity can be done in many ways,

on imported fuels and stimulating the national economy.

and the possibilities should be critically explored to

R&D recommendations:

• Develop suitable models for raw materials treatment and logistics.

policy recommendations:

• Demonstration and profitability of various value chains and production methods should be demonstrated and

• Development of advanced systems for the integration of thermo-chemical and bio-chemical conversion processes.

• Value chain analysis of biofuels, as well possibilities for co-production of heat and energy.

tested in plants of a sufficient size.

49

h eat pum ps

Broad applications for an established technology with development potential

By utilizing thermal gradients, heat pumps can substantially reduce CO 2 emissions. Waste heat can be more effectively utilized and industry clusters could use their excess heat to optimze heating, cooling and various production processes. These are only a few examples of the potentials of heat pumps. The technology is well-developed, but needs to be researched still further to work on an industrial scale.

Naturally, heat will by itself flow from a warm to a colder

transport heat from the indoor rooms and deliver it

place. Heat pumps possess the unique property, that

to the hot outdoor air, so that a comfortable indoor

they may take up heat from a low temperature level and

temperature may be sustained (‘climate cooling’).

transport it to a higher temperature. To achieve this, we must supply energy, most usual in the form of electricity.

The electric energy (or work) needed to operate heat

The ratio between the heat delivered and the electricity

pumps is substantially lower than the heat supplied,

spent, is called the heating factor. Heat pumps may be

because most of the heat delivered is collected ‘free

utilized successfully both in buildings and industry.

of charge’ from the ambient.The ratio between delivered heat Q and the electricity used W, is defined as ‘heating

Within the building sector we need energy BOTH to

factor’, which is used to represent the efficiency of the

supply and remove heat from the rooms to sustain a

heat pump. If the average heating factor is 4 over the

comfortable indoor temperature around the year, AND

season, it means that 75% of the heat delivered to the

to produce hot water for different purposes. Around half

building is gathered free of charge from the ambient,

of the 80 TWh energy spent in Norwegian buildings is

while 25% come from the electricity used to operate

used to support heating demands (40-45 TWh). In their

the heat pump. This electricity is converted and utilized

analysis ‘Klimakur’ has calculated that this will increase

by the heat pump.

to 50-55 TWh in 2030.

The heating factor is depending strongly on the Te c h n o l o g y s t a t u s

temperature difference between the room and the heat source – small temperature difference will give

Heat pumps constitute a technology that make it

higher heating factor. If we collect heat from cold

possible to support heating demands in an efficient

air, we get the lowest heating factor. If we can gather

way, so that we may reduce substantially the energy

heat from sea water or underground, where the source

use for these purposes. Heat pumps makes it possible to

temperature is higher, the heating factor will increase.

gather free of charge renewable heat from the so-called

Why technology for heat exchange with the ground

‘ambient’, that is ambient air, water or underground, and

receive more attention.

increase the temperature of this heat so much that it may be used within the house for ‘heating’. Likeways

The application of heat

pumps in Norway

was

the same ‘heat pump’ may be used in summer to

delayed for specific reasons, but it took off around

50

whereoff 5-6 TWh was gathered from ambient air and

technology possesses a large international potential.

water. Forecasts for 2020 show that heat pumps will

It could be mentioned that to-day there are almost 4

deliver around 20 TWh (12 TWh free of charge from

million tap water heat pumps (‘Eco-Cuto’) for individual

the ambient). Thus the ambient will be a substantial

houses in Japan based on Norwegian technology,

renewable energy source in future – also in Norway.

originally brought forward by Hydro Aluminum.

When heat pumps replace electric heating (based on

The competence on CO2-technology is strong in Norway.

hydropower), valuable electricity will be available for

This competence has already been utilized by Norwegian

alternative value creating activity; export or inland

companies that have developed tap water heat pumps

power refining process industry.

for larger houses and for super markets; cooling and heating equipment for cars; refrigeration plants on

When heat pumps substitute oil or gas fired heating

fishing vessels and several other areas of application.

plants (which receive high attention in the Climate Report), this will contribute to reduce CO2-emissions

Heat Pumps may also be utilized to make industrial

substantially, even when the electricity comes from

processes more energy efficient, and make energy

thermal power stations. Therefore heat pumps constitute

available for other purposes. The potential may be

an environment-friendly, efficient energy technology

substantially increased if we may develop better

both on the national and international market.

solutions for high temperature heat pumps; to utilize low temperature waste heat (20 – 100 oC) to cover heat

Challenges and opportunities

demand at higher temperature (100-200 oC). Solutions based on steam-compression-processes for natural

Heat pumps have environmental problems because they

working fluids (CO2, NH3, Hydro Carbons and H2O) could

used to utilize so-called halocarbons as working fluid.

also be developed to produce electricity, based on the

These are produced and supported chemical industry.

competence within CfRE. Further solutions based on

The ozone-problem (Montreal Protocol) was solved by

absorption

changing the working fluid from CFC to HFC. However

should also be investigated.

and

compression-absorption

principles

HFCs are strong greenhouse gases that were included in the Kyoto Protocole. In Norway we have made priority to

Another huge possibility is to develop ‘smart energy

develop technology that utilize so called ‘natural working

technology’ for industrial clusters – where energy is

fluids’ (CO2, NH3 etc.). This strategy was promoted by the

utilized by different industries within a local community

late professor Gustav Lorentzen, who also developed a

that may cooperate to provide and share electricity,

successful patent based on CO2 as working fluid. This

heating and cooling in a smarter and more efficient way.

51

R&D recommendations:

policy recommendations:

• Develop customized applications for

• Launch an initiative to develop CO2

heat pumps in the domestic and

heat pumps for warm tap water and

industrial sectors.

climatization of future ‘Zero Emission Buildings.’

• Develop high temperature heat pumps based on natural working fluids for industrial purposes.

52

t h ermo el ectr ic ity

Direct conversion of heat gradients to electricity

In the quest for energy efficiency, the utilization of thermo-electricy has emerged as a novel and promising alternative. Utilizing waste heat from industries is a potentially fertile ground for the electricity generation. Although the basic principles of thermo-electricity are well understood, the construction and scaling of installations proves to be challenging.

While the search for alternative sources of energy

which open new possibilities for applications and self-

continues, thermoelectricity has emerged as a highly

sustainability of integrated technology.

promising and novel alternative to traditional heat pumps and heat engines. The technology surrounding

Challenges

thermoelectricity relies on thermoelectric materials that make up the thermoelectric module. These special

Large scale commercialization of thermoelectricity

materials make it possible to convert heat gradients,

is today limited by too low conversion efficiency,

having one cold and one hot source directly into electricity,

commercial challenges such as up-scaling and high

or to apply electricity to these materials to heat or cool.

production costs, environmental issues due to the heavy

This technology works without relying on any moving

and toxic elements composing the module and finally,

parts or working fluids or gases. Thermoelectricity is

degradation over time.

thus a technology which excellent flexibility, scalability, portability and longevity. In addition to the recovery

The tightly interwoven relationship between electricity

of waste heat, thermoelectricity can also be used to

and heat is inherent to these modules and involves

generate electricity from heat sources where no other

the exploration of uncharted territories related to the

alternative exist or is suitable.

understanding of the basic principles in material science.

Further development of this technology depends on

Considering that the most common energy conversion

long-term research investments in order to obtain the

processes expel almost 60% of the input energy as

necessary knowledge to fully map these interactions.

waste heat, recovering parts of this energy would have tremendous impact on multiple levels. In this setting,

Recommendations

thermoelectricity is expected to contribute, particularly in areas where it is difficult to utilize the waste energy

Addressing these issues would put Norway on the map

as a direct heat source in steam engines, buildings or

internationally, not only as a nation developing state-

in general to heat water. Examples of this are waste

of-the-art technology at lab scale in Universities and

heat in the transport sector (including sea vessels and

Research Institutions, but also as a country that generates

airplanes) and waste heat from industrial processing

a breeding ground for venture companies outside the

plants. Furthermore, it is possible to generate electricity

oil sector. Most importantly, Norway will contribute by

from small temperature gradients of a few degrees,

taking responsibilities for the world’s need to use energy

53

in a more sustainable manner. We recommend that Norway pursues this path.

The challenges that need to be addressed are multidimensional and must to be executed on several levels. To develop a mature technology, investments in basic and applied research must be sustained over a period of decades. At the same time, funding need to be available in order to stimulate commercialization during this period.

R&D recommendations:

policy recommendations:

• Elevate current state-of-the-art

• Stimulate commercialization efforts,

efficiency by new materials solutions

particularly related to up-scaling

and concepts.

and the production of modules containing non-toxic and abundant

• Research to eliminate the us of toxic and non-abundant materials in thermoelectric applications.

• Reduce the degradation of modules and their materials.

elements.

54

b a t te r y techno lo gie s

Storage technology as enabler of flexibility

With the increasing efficiency of energy production methods (i.e. solar power, wind power...) and the emergence of electric vehicles the question of storage becomes increasingly relevant.

Batteries will fullfil an important role in any sustainable energy system. This means that research on battery capacity, materials, environmental effects and production methods will become of vital strategical importance.

The integration of large amounts of intermittent

this role. On the anode side, silicon is well known as

renewable energy such as wind and solar power and

a promising material with much higher density of Li

the management of complex interactions between

than carbon. As the capacity of current Li-ion batteries

suppliers and customers will be two core challenges in

is cathode limited, and the cathode has the highest

the operation of any electricity grid in the near future.

material costs, considerable research effort is being

Energy storage capacity on both long- and short-term

directed at increasing the cathode capacity, focusing on

basis will play an important role in these future grids.

environmentally friendly, safer and cheaper materials.

The transition from large, centralized power production

Nano-structuring of the active electrode materials

to a more decentralized system will require a range of

is seen as one promising path towards enhancing

new energy storage technologies.

kinetics and battery life. Whereas lithium ion batteries are commercially available today, there are several

Te c h n o l o g y s t a t u s

novel technologies that hold great promise, but still face technological challenges to be overcome prior to

The explosive growth of consumer electronics in need

implementation.

of electric energy have has during the last decade triggered massive investments in battery technology,

Among those suggested for automotive applications,

with major advances in battery capacity, power and

lithium-sulphur and lithium-air batteries are thought to

lifetime. The use of batteries in zero-emission transport

have great potential, but the use of elemental lithium

solutions and large scale energy storage will eventually

imposes challenges both technologically and with

yield significantly higher volumes and revenues than

regards to battery safety. Due to their potentially low

consumer electronics, but will require a stronger need

cost and the abundance of starting materials, interest

for longevity.

in zinc-air batteries has also been rekindled over the last few years. For stationary applications, completely

Although battery manufacturers today are concentrated

different battery chemistries, such as molten salt, liquid

in Asia, much of the value chain of the materials and

metal, sodium sulphur (NAS) batteries and magnesium-

chemicals for the batteries is still located in high-cost

based batteries have an advantage over lithium-based

countries such as USA and Germany. In electronics and

batteries due to their lower cost and more abundant

the electric car market, capacity is a primary requirement,

starting materials. Suggestions have also been made

and thus Li-ion technology is especially well suited for

to explore the re-use of batteries that can no longer be

55

used in cars as a niche market for stationary solutions.

related to the use of batteries in the offshore and marine sector, with particular emphasis on lifetime prediction and

Challenges

safety. The development of batteries that can withstand extreme conditions, such as high temperature and high

Batteries are complex systems that require the

pressure-tolerant batteries for offshore applications, low

combination

science,

temperature batteries for use in cold climates and very

electrochemistry, physical characterization, modelling,

of

expertise

in

materials

high longevity batteries for remote installation is also

thermal physics, and numerous other disciplines. Norway

likely to be a focus area in the years to come.

is well-equipped with relevant competence in these fields and there are currently several research groups

Outlook

with battery research activities. There are currently no battery manufacturers in Norway, but there are however

Batteries will eventually require large amounts of

large users of batteries, and manufacturers of several

materials, if they are expected to fill all proposed niches.

types of materials that could be used in batteries.

Eco-friendly and available materials, as well as re-use

The main challenges faced in Norway at this time are

and recycling of the materials will become increasingly

56

relevant, as the demand for capacity and production

for potential use in electrodes can fill niches early

increases. Future restrictions on the use of toxic solvents

in the value chain for batteries. To ensure flexibility

(e.g. NMP) in electrode fabrication are likely to be imposed,

in application, materials should be optimized for

creating a need for fabrication methods based on more

battery usage, for example through nano-structuring.

environmentally benign solvents. Introduction of larger

In particular, the production of silicon, aluminium and

battery packs in ever more demanding applications

magnesium, as well as mineral extractions stands out as

requires more advanced battery management systems to

relevant industries for further research into this field.

ensure good battery life, performance and safe operation.

Efforts aimed at increasing of volumetric capacity for

Norwegian researchers should establish themselves

automotive and portable applications, as well as more

as attractive partners for international research by

environmentally friendly manufacturing and recycling

developing expertise in strategic niches along the

methods is foreseen.

value chain, in collaboration with partners with broader expertise. Such cooperation will again demand long-

The existing Norwegian processing and metallurgical industries, as well as manufacturers of binder materials

R&D recommendations:

• Development of environmentally friendly material and component manufacturing solutions and recycling technologies.

• Development of battery chemistries for extreme temperature and pressure conditions.

• Development of methods for lifetime prediction and testing.

• Development of battery technologies for large-scale energy storage.

• Optimization of materials for higher performance, longer life battery solutions.

term initiatives.

57

hydro ge n a p plic atio ns

A key to the utilization of intermittent renewable energy

Renewable energy could be stored as hydrogen, and used as fuel in vehicles or in stationary power production. However, the full implementation of hydrogen applications on an large scale still asks for further research and demonstration activities.

Internationally

leading

auto

manufacturers

and

identified as critical for the successful implementation

European energy companies agreed that hydrogen will

of fuel cells (FC) in vehicles have all been solved. Start-

play a key role both as fuel for transportation as well

up and operation in temperatures down to -30oC has

as an energy storage medium for a steadily increasing

been demonstrated, the driving range of today’s FCEVs

share of renewable energy sources in stationary power

prototypes is 400-800 km and the refuelling time is

production.According to IEA’s Blue Map scenario hydrogen

reduced to 3 minutes. Moreover, the volume of the FC

must be implemented as fuel in transportation in order

systems has been reduced to a level at which the complete

to achieve the IPCCs 2oC goals. Moreover, the European

power train can be implemented without reducing the

Commission’s SET-plan concludes that hydrogen and

space in the vehicle. FCEVs have also shown operability

fuel cells constitute key enabling technologies to reach

in the harsh Nordic winter climate and since the FC in

the vision of a low carbon society.

addition to electricity also produces some heat (at ~80 °C) the driving range is not significantly reduced in cold

Hydrogen exhibits high gravimetric energy density

climate. According to US DoE FC systems for automotive

and can provide the required flexibility with respect to

applications (typically 80-100 kW) are already cost

both medium and long term (seasonal) energy storage

competitive with combustion engines when the number

and long driving range when hydrogen is used as fuel

of produced units reach half a million. Hyundai started

for transportation applications. Hydrogen may be

production of the first 1000 FCEVs already in January

produced by splitting water utilizing e.g. wind energy

2013 and Toyota and Honda recently reconfirmed that

during periods when power supply exceeds demand.

their FCEVs will be launched in the market in 2015 at an

When there is less wind (or sunshine), hydrogen is re-

affordable price.

electrified in fuel cells (FCs) and the power delivered to the grid. Alternatively, hydrogen is mixed into e.g. biogas

Although the main driver for the development of FCs has

and burned in combined heat and power plants or used

been the use in vehicles, many of the FC types are best

as pre-cursor for production of synthetic fuels (e.g.,

suited for stationary applications. Common for these FC

methane or methanol) or various chemicals.

types is that they usually operate at higher temperatures and that the systems are designed for the heat to be

Te c h n o l o g y s t a t u s

utilized. FCs for stationary applications can also operate on various fuels such as natural gas, LPG, biogas, and

The technological challenges which ten years ago were

methanol, featuring high electric efficiency (50-60%

58

even for small units), high grade heat utilization, and

technologies, very dependent on production volume.

CO2 separation and concentration as an integral part

Thus, in the initial phase of deployment the cost of

of the energy conversion process. Thus, carbon capture

FCEVs is expected to be significantly higher than that of

is simplified considerably compared with conventional

cars with combustion engines. Similarly, for electrolysers

combustion technologies, where CO2 is emitted in

and hydrogen storage technologies cost reduction is

diluted gas mixtures. Several 10.000 FC units (kW) have

required for commercialization.

been installed in Japanese households, MW-sized power plants are in operation in e.g. California and a 60 MW

Moreover, there are needs for further development and

FC based power plant is under construction in Korea. In

adaptation of system components, as the efficiency and

Germany large scale hydrogen production from wind for

reliability of today’s hydrogen systems suffer from the

grid stabilization is being pursued, facilitating increased

use of of-the-shelf components (pumps, heat exchangers,

utilization of renewable energy.

valves, etc.) developed for other applications. Tailor-made components are required to fully exploit the potential of

Challenges In general, hydrogen technologies have reached the

these novel technologies.

Outlook

maturity level needed to facilitate large scale introduction of renewable energy sources in stationary power supply

Particularly interesting for Norwegian stakeholders

as well as hydrogen as fuel in transportation. Current

is hydrogen production from unregulated renewable

prototype FCEVs are still somewhat heavier than

energy (wind and small-scale hydro) and from natural gas

conventional cars. However, more auto manufacturers

in power plants with carbon capture and sequestration

confirm that the FCEVs to be launched in the market in

(CCS). The use of hydrogen and FCs in maritime transport

2015 will have the same weight and load capacity as

and energy systems for remote areas with limited or no

comparable cars with combustion engines.

network access also represents a viable niche market segment.

The remaining challenges for hydrogen technologies are in general durability and cost, leaving the focus of R&D

Norway has played a pioneering role in hydrogen

activities towards new materials. The lifetime of e.g.

production since the late 1920s, as basis for large scale

FCs for cars and buses today ranges from 2500 to 4000

fertilizer production. Based on industrial as well as

operating hours, corresponding to 100.000-160.000 km.

academic competence Norway can play a central role

Hence, the lifetime must at least be doubled before FC

as supplier of technology to the growing market for

technology for automotive applications is competitive.

hydrogen technologies, early market for FCEVs based on the world’s most effective incentives and exporter of

The production cost of FCEVs is, as for most other

hydrogen in a 2030-perspective.

59

R&D recommendations:

policy recommendations:

• Development of new materials for

• Pilot- and full scale demonstration of

lower cost and durable hydrogen

cost-effective system-integrated

technologies, including electrolysers,

hydrogen production and re-

storage solutions and fuel cells.

electrification.

• Development of customized system components tailor-made for hydrogen applications.

60

en ergy ef fi cie nc y i n t he i n d us tr y

Improved industry competitiveness by improving energy efficiency

The utilization of waste outputs is a theme that underlies the notion of the circular economy.

An output stream that could be used to enhance industry effiency is waste heat. The potential amount of energy that could be recovered in this way is large, but effective utilization asks for technological and organizational measures.

The Norwegian industry emits a vast amount of waste

Waste heat is often available at temperatures which are

heat energy. This heat energy could in principle be

not useful for internal use in the industry producing it

utilized, but common challenges are that it is difficult to

or by potential users close to the industry. By utilization

utilize it close to where the industry is located and that it

of high temperature heat pumps the waste heat could

has a temperature level which is too low to be utilized. It

be valorized and delivered at a useful temperature

is three main possibilities to valorize this waste energy:

level. High temperature heat pumps able to deliver heat at temperature levels in the range 90-250°C is to a

•

Produce electricity by implementing a power cycle

•

Increase the temperature level by utilization of high

water (steam) heat pumps are implemented either in

temperature heat pumps

open vapor recompression systems or closed vapor

small extent available for industry. For larger capacities

compression systems. For medium to large capacities •

Establish industry clusters where heat demanding

there is a need to develop new technology based on

industries establish close to the industry having

environmentally benign working fluids.

waste heat available.

Both power cycles and high temperature heat pumps A further possibility to reduce the amount of waste heat

need to capture heat from the industry sources which

and/or to valorize the temperature level of the heat, is of

often requires specialized heat exchangers often

course to enhance the industry processes in itself.

operating in very challenging environments. This raises

Te c h n o l o g y s t a t u s a n d C h a l l e n g e s

challenges such as: •

Power cycles are being implemented in industries having

Handling of dirty gases causing particle deposition, scaling etc.

large amounts (MWs) of high temperature (>400°C) exhaust gas available. For medium to low (250-100°C)

•

Heat exchange close to industry processes limiting

temperature waste heat power cycles are implemented

the working fluids or heat transfer fluids that may

to a lesser extent, partly because the existing options

be accepted.

have a too low efficiency and partly because the systems are too expensive.

•

Heat exchangers and working fluids able to accept high temperatures

61

•

Specializes heat exchanger concepts, e.g. to capture

There exist successful examples of industry clusters, but

heat from cooling of process elements

so far they are more the exemption from the rule. The potential is large and should be explored.

This raises a need for developing reliable and cost efficient heat exchanger concept that can be implemented for

O utl o o k

heat recovery in industry The strong competence basis existing in Norway in Industry clusters

general, and at NTNU-SINTEF more specifically, related to refrigeration technology and steam power cycles should

Waste heat available from one industry may be utilized

be utilized to develop cost efficient power cycles for

by one or more industries in an industry cluster. In

lower temperature waste heat and for high temperature

principle this seems straight forward, but in practice

heat pumps. A considerable knowledge also exists in

there are several challenges, examples are:

the same competence environments regarding heat exchanger development and heat exchanging issues that

•

Coincidence of demand and supply of heat

can be utilized contribute in this area. The knowledge basis can further be utilized to initiate development of

•

Different owners of the different industries that

successful industry clusters.

may have different interests •

Risk if one or more of the industries are shut down

R&D recommendations:

• Increase the knowledge related to heat capturing technology in order to develop novel cost efficient heat exchanging technologies.

• Increase the knowledge related to heat capturing technology in order to develop novel cost efficient heat exchanging technologies.

• Develop more cost-efficient power cycles for low to medium temperature heat sources (100-250°C) based on benign working fluids.

policy recommendations:

• Develop industry cluster concepts to minimize emissions of waste heat.

62

t ra nspo r t

Alternative fuels and power sources to reach zero-emission transportation

Perhaps the shift towards a sustainable economy will be most clearly visible in the transport sector. New possibilities to use biofuel, hydrogen, electricity or combinations of these will undoubtly re-shape the future highway environment, travel and transport dynamics and also the landscape itself. Many promising technologies are on the verge of being implemented on a large scale - making long-term sustainability an important research agenda.

Transport contributes by around 25% to the global GHG

for the directive was launched January 2013, and the

emissions and comparably in Norway by 33%. The higher

general approach was adopted by Member States

share in Norway is primarily due to stationary power

December 2013.

generation being fully covered by hydroelectric sources, and secondly due to Norway’s demography and the

In the directive natural gas is also included as this will

massive coastal traffic. In Norway road transportation

provide environmental benefits with respect to emission

alone contributes by 25% to the total domestic GHG

of particulates and NOX when replacing diesel in some

emissions, and both road and maritime transport have

market segments, like in heavy duty vehicles and in

experienced a significant growth over the last decades.

maritime transport. This SFFE strategy will, however,

With an annual domestic energy consumption in

focus on fuels which are purely based on renewable

transportation of about 60 TWh and vast amounts of

energy and will therefore only consider electricity,

un-exploited renewable energy available the transport

biofuels and hydrogen.

sector represents a key area for GHG emission reductions in Norway.

When evaluating these alternative fuels’ potential contribution to emission reductions it is important to

The predominance of fossil fuels in transportation is

include the availability of resources. Although biofuels

still high although fuels based on renewable resources

according to the figure may be used in all market

have been introduced in some market segments. As part

segments, biofuels should (due to limited availability)

of the European Union’s ambitious strategy for reducing

be reserved for segments of transport where there are

the CO2-emission, a new directive is being introduced in

no or few other alternatives, like in heavy duty transport

order to secure the supply of alternative fuels through

over longer distances, maritime transport and aviation.

a parallel development of refuelling infrastructure

Furthermore, to secure optimal utilization of renewable

for natural gas, electricity, biofuels and hydrogen. It is

based electricity as well as biomass, it is crucial to realize

foreseen that various fuels and propulsion technologies

that stationary power production and transport are

will dominate different segments of transport in the

competing for these same resources.

future. (See figure on the opposite page).

Te c h n o l o g y s t a t u s The European Commission’s overview of which fuels are suitable for various segments of transport. The proposal

Electric propulsion of vehicles is nothing new. At the turn

63

of the 18th century, more battery electric vehicles (BEVs)

load, for which regenerative braking represents the

were sold than cars with internal combustion engines

major part of these savings. HEVs now take more than

(ICEs). During the late 1960s the first fuel cell electric

a 50% share of Toyota’s sales in Norway. Plug-in hybrid

vehicle (FCEV) was demonstrated, in which the energy

electric vehicles (PHEVs) have a larger battery pack than

is stored as hydrogen and converted to electricity upon

HEVs which may be charged from the grid. The number

demand. Since the (re-)introduction of the hybrid electric

of PHEV models on the market is increasing, but they are

vehicle (HEV) Toyota Prius in the passenger car market in

still selling in low numbers due to higher cost than cars

1997, most auto manufacturers now offer hybrid versions

with conventional ICE power trains.

of some of their models. Moreover, bio-based fuels have been utilised for almost a century, although initially at

Hydrogen

low shares. Europe is currently producing significantly

Hydrogen powered FCEVs are technologically mature

volumes of bio fuels and is targeting a 10% of biofuels

(see also the chapter Hydrogen applications) and will

in 2020.

in the period 2014-2017 be introduced to the market by several leading auto manufacturers; Hyundai,

Electricity

Toyota, Honda, Daimler, Nissan and Ford. The number of

BEVs are available from many auto manufacturers

vehicles is, however, currently limited to some hundreds

and are currently selling very well in Norway, totalling

globally. Several demonstration projects within public

20.000 vehicles registered by the end of 2013, related

transportation (buses) are also in progress. Political

to tax exemptions and a wide range of benefits for BEVs

engagement is increasing especially at regional level.

and FCEVs. High sales are also expected in the next

Application of hydrogen as fuel in maritime transport

years. HEVs combine a conventional ICE with an electric

has recently also received attention. Public support

drive-train and a small battery pack, thereby reducing

for establishment of hydrogen infrastructure is a

fuel consumption significantly for city driving at varying

prerequisite for FCEVs to take market shares.

road

urban

medium

long

rail

shor t

medium

long

air

water

inland

shor t routes

maritime

natural gas electricity

biofuel

hydrogen

European Commission’s overview of which fuels are suitable for various segments of transport. The proposal for the directive was launched January 2013, and the general approach was adopted by Member States December 2013.

64

Biofuels

sufficient supply of renewable energy for transportation

In Norway the agrarian crops growth rate is generally too

applications. Introduction of one fuel or new propulsion

low for profitable production of first generation biofuels,

technology alone will not solve the overall problem we

unless larger quantities of biodiesel is produced from

are facing.

rape seeds. Second generation bio fuels can, however, be produced from wood or marine raw materials like macro

Driving range still limits the widespread deployment

algae, which have a high potential in Norway.

of BEVs for intercity driving, but the establishment of a network of super-chargers along the main roads is

According to Statistics Norway (SSB) the potential for

in progress, extending the use of BEVs to rural areas.

utilization of Norwegian woods, biogas and seaweed

Despite tax reduction based on CO2-emissions for

as resources for biofuels all together cover 2300

PHEVs in Norway these are still more expensive than the

million litres fuel annually. [1] As comparison, the fuel

corresponding vehicles utilising conventional ICE power

consumption for coastal traffic is 1800 million litres/

trains.

year and for the domestic air traffic 1000 million litres/ year. The total fuel consumption for transport in Norway

Limited access to and high initial cost for hydrogen as

in 2011 was 7700 million litres. [2] The resources for

fuel also constitute important challenges, which needs

biofuel could hence, cover around 30% of the required

to be resolved before the FCEVs can be introduced in the

fuel in Norway.

market and represent a realistic alternative for the end user. Incentives for fuel-providers must be introduced

Challenges

in order to stimulate the investments in and profitable operation of hydrogen refuelling stations until these

Substitution of conventional crude oil based fuels with

become commercially viable.

renewable alternatives like electricity, hydrogen and biofuels constitute viable options to reach zero-emission

Introduction of biofuels to the current transport

transportation. However, the varying degree of efficiency

system is possible and requires limited changes to

and competition regarding resources require that

the infrastructure. However, the lack of cost efficient

several technologies are developed in parallel to ensure

conversion technologies for marine and terrestrial

65

R&D recommendations:

policy recommendations:

• Ensure commercially competitive bio-

• Public support for establishing

based fuels, including biogas for all

charging/refuelling infrastructure

sustainable production paths through

for electic vehicles and biofuels

a combination of tax incentives and

is needed to support deployment of

research activities.

sustainable transportation.

• Preserving the tax exemption incentives for zero-emission vehicles until their number exceeds 50.000 or until these are commercially competitive.

• A joint assessment with respect to availability of and demand for energy across stationary power production and transportation.

66

R&D recommendations:

• Develop more cost-efficient power cycles for low to medium temperature heat sources (100-250°C) based on benign working fluids.

• Increase the knowledge related to heat capturing technology in order to develop novel cost efficient heat exchanging technologies.

policy recommendations:

• Develop industry cluster concepts to minimize emissions of waste heat.

67

b u i lding ef fi cie nc y

Integrating engineering, materials and building concepts

The built environment has a long lifecycle, during which it traditionally contributes to continuous CO 2 emissions and inefficient use of energy. Building efficiency aims at reducing the negative impacts of these two phenomena, as well as adding the production of renewable energy to the mix. In order to accomplish these ambitious goals, a thorough integration of engineering, materials science and novel building concepts is needed.

Over the last few years the market for low-energy houses

legislative instrument to reduce the energy consumption

in Norway has experienced a rapid development. The

of buildings. Under this Directive, Member States must

demand for passive houses, i.e. houses with an energy

establish and apply minimum energy performance

loss of less than 25% of normal standard, is also growing

requirements for new and existing buildings. Moreover,

rapidly, both in Norway and in Europe. This has led to

the Directive requires Member States to ensure that by

an incipient development of new Norwegian products

2021 all new buildings are ‘nearly zero-energy buildings’.

for this market. During the last 2-3 years zero-emission

There will also be stricter guidelines on renovation of

buildings have been planned, and the first ones will be

buildings. 80% of the buildings that exist today will also

completed in 2014. These buildings do not contribute to

be available in 2050, but with reduced emission levels.

greenhouse gas emissions over their lifetime.

The greatest potential for increasing energy efficiency Te c h n o l o g y s t a t u s

resides in the upgrading of existing buildings. The development of products, solutions and operational

Approximately 40 percent (87TWh) of the energy used in

and management systems are central to achieving

mainland Norway goes to lighting, heating and electrical

greater energy efficiency in the repair, remodeling and

equipment in homes and commercial buildings. 80

refurbishment.

percent of this is electricity. In the building regulations scheduled for 2015, Passive House standard is expected

Challenges

to be the requirement for all new buildings. Further, two White Papers from the government to Stortinget:

The solution to the high energy use and related emissions

‘Gode bygg for eit betre samfunn – Ein framtidsretta

on the building sector is to develop buildings that do

bygningspolitikk’ [Good buildings for a better society –

not contribute with greenhouse gas emissions during

building policy for the future] and ‘Norsk klimapolitikk’

their life cycle, zero emission buildings (ZEBs). This can

[Norwegian Climate Policy] points toward stricter

be done by harvesting more renewables energy than is

requirements. Both White Papers stresses that within

used for construction and operation of buildings and for

2020 the energy use in buildings should be nearly zero.

production of the materials used. The new requirements

This is also in accordance to the Energy Performance

will result in the need for new and improved materials and

of Buildings Directive 2010/31/EU (EPBD). On 19 May

technologies that will make it possible to reduce energy

2010, the EU adopted the EPBD which is the main

consumption and environmental impact of buildings

68

in a sustainable manner. The focus will be on reducing

projects and serial production of smaller buildings) and

energy requirements in the operational phase using

at a smaller scale (individual projects and renovation

improved technologies for thermal insulation, glass and

projects).

window technology, energy efficient ventilation systems, energy efficient systems for heating and cooling, energy

Outlook

efficient electrical equipment, control systems etc.

Improved technologies for renewable energy are also

The objective related to building energy efficiency will

important, such as building integrated solar (PV), solar

have to include the development of materials, products

thermal, biomass heating and heat pumps. The material’s

and solutions for existing and new buildings, commercial

and technologies’ environmental footprint must also be

as well as residential. With enough critical mass, a market

reduced where possible, because CO2 emissions from

breakthrough can be effectuated, leading to acceleration

materials used in a building can be greater than the CO2

in implementing the construction and operation of zero

emissions from the operational phase of a zero emission

emission buildings. With the rise of ICT, new engineering

building. In addition, it is equally important to ensure

concepts and models can be developed to design and

that individual technologies interact well together,

operate the buildings. Examples here are controls

for example, that systems for heating, ventilation and

for light, ventilation, heating/cooling, and monitoring

air conditioning work well with the building envelope

of the indoor climate. With the availability of newer,

materials and solutions, and that the indoor air quality

more environmentally friendly and more cost effective

and resource efficiency are maintained throughout the

materials, it is necessary to update our understanding of

life cycle of the building.

the behaviour these materials and the consequences this has for the performance of the built environment.

The solutions must be implemented both at an industrial scale (primarily for large buildings, major renovation

69

R&D recommendations:

policy recommendations:

• Develop building materials and

• Laboratory infrastructure: Build a

envelope solutions, intelligent

Zero Emission Building Laboratory

management and control systems

(ZEB Lab) where it is possible

and methods for calculating

to develop, investigate, test and

greenhouse gas emissions.

demonstrate new and innovative building technologies.

• Develop new products and solutions for effective renovation of existing buildings.

• Investigate how future buildings need to be constructed so that they are robust to different uses and different users. .

• Develop specific concepts for zero- emission buildings (for different building types) and initiate zero emission building pilot projects..

70

s mar t c itie s

Interacting with the built environment

The smart city is a notion that brings contemporary developments in urban planning, architecture and ‘big data’ together. Effective use of information on building and district performance has the potential to enhance the performance of urban areas significantly. Since a city is more than data, elaborate experiments in so-called ‘Living Labs’ are necessary to see how smart technology and everyday activity go together.

Integrated energy planning in towns and villages is

14 countries have been working together to create

one of the spearheads of the European initiative ‘Smart

competences, in an attempt to make life in European

Cities and Communities’ which was released in 2011.

cities easier, cheaper and more environmentally friendly.

Late 2013 a Strategic Innovation Plan for Smart Cities

To accelerate innovation in construction and transport,

was launched by the European Commission, helping

the European platform for construction technology (ECTP

European cities to find innovative solutions, create

- European Construction Technology Platform) authored

value, and share knowledge in order to become smarter

two central roadmaps with input from the industry and

cities. smartness in this context implies robust design

the scientific community. The E2BA (Energy Efficient

of buildings, infrastructure, urban planning and mobility

Buildings Association) coordinated the process of

linked to smart ICT systems to optimize energy supply

defining the roadmap for energy efficient buildings, and

at all times. Since the built environment influences

this collaboration managed to mobilize 150 companies

landscape, ecology, and human organizational structures,

from across the value chain, of which 25% were small

careful long-term decision will need to be made as these

and medium sized enterprises. The community hopes for

will be influencing the environmental performance of

even greater impact with the road map for transportation

cities for years to come.

and infrastructure, which includes about 5 million km of roads, 215.000 km railways, and 41.000 km inland

The total public and private investment needed in Europe

waterways in the EU’s 27 member countries (ReFINE –

over the next 10 years is estimated at approximately €11

Research for future infrastructure networks in Europe,

billion. By 2020, the Smart Cities initiative should put 25

2013). Both roadmaps call for larger systems thinking in

to 30 European cities at the forefront of the transition to

the industry and offer concrete suggestions for research

a low carbon future. These cities will be the nuclei from

and development in order to avoid continuing to repeat

which smart networks, a new generation of buildings

the mistakes of the 20th century: increasing greenhouse

and low carbon transport solutions will develop into

gas emissions, decreasing innovation and high building

European wide realities that will transform our energy

costs were a waste of precious resources. Strikingly,

system.

both roadmaps emphasize people, attractiveness and accessibility, health and safety strategies to make both

Te c h n o l o g y s t a t u s

buildings and infrastructure more energy efficient and cost effective in one lifetime. Much attention is also

Research, business, education and government in over

directed towards the renovation of existing buildings

71

and infrastructure and energy efficiency at all levels

Challenges

- from components to the site level - and better use of ICT solutions, both in engineering and in subsequent

Energy conservation and efficiency are the key issues

management and maintenance. Norway boasts advanced

in the global effort to tackle climate change and

energy monitoring (AMS) and the widespread use of new

resource scarcity (EC 2012), and the effect of energy

technologies such as smart phones and mobile services,

efficiency increases significantly when combined with

and is positioned at the top of international surveys of

other resource efficiency measures (EC 2011). One of

quality of life. Unfortunately, Norway also has a high

the main challenges is to get to sufficient interaction

electricity use in households and buildings in general.

between widely different fields such as urban planning,

Norway is therefore in a unique position to demonstrate

energy management, greenhouse

how integrated energy planning linked to the use of ICT

climate change, aesthetics, functionality, socio-economic

and robust building technologies can create smarter,

conditions, health, wellness, comfort, productivity, culture

environmentally friendly towns, and can possibly be

and heritage (Leipzig Charter 2007).

among the first to export new knowledge and technology which may be useful learning for other countries.

gas

accounting,

72

‘Smart cities and villages’ is a research and innovation

networks, users and the environment in real time, and

area that offers a unique domain for interaction in

this hinders the development of integrated, flexible and

the form of integrated energy design, urban planning,

resilient solutions that can adapt over time (Conte et al

infrastructure, buildings and energy, combined with

2012, Larsson et al 2011, Salat 2012).

a high quality of life and high quality of the built environment. The development of smart cities and towns

Outlook

requires a long-term strategy for integrated energy design with clearly defined and measurable goals that

EU and China are preparing major investments in

ensures robust and accountable system design that

smart cities. Living Labs should cultivate experiences

can also be adapted to changes in utilization, users,

with holistic urban administration driven by ambitious

and technologies. Topics that may be designated as

targets and innovative technology, exchange expertise

priority challenges are measurement and verifiability

and mutual learning experiences. Planning for the

of quantitative and qualitative data, the development

impact of this technology and its integration in the

of integrated simulation and modelling tools, and a

built environment in the coming decades is highly

common European framework for ‘Smart Cities’ projects

uncertain. Good synergy between design, technology

with indicators and databases that provide a better basis

and people will be of particular importance for any

for comparing and learn from each other’s experiences.

long-term successes. This requires a systemic roadmap that provides guidelines, standards and indicators for

Change processes aimed towards integrated urban

planning, design, construction, upgrading and operation

energy planning require a thorough understanding and

of smart cities and villages during their entire life cycle

analysis of how use, production, transfers and storage

within different scales.

of energy occur between buildings, public spaces and networks. In addition, climate change has become of

Of particular interest to Norway is the linkage of

increasing concern for energy systems integrated into

inclusive building processes with ‘smart’ decisions: data,

the built environment, and such systems should hence

tools, verification, methods of integration of robust

be able to provide resistance to extreme weather and

design, and smart technologies. The process and project

small incremental changes in weather conditions. They

experience from Cities of the Future (Fremtidens Byer),

should also be flexible enough to retain or resume their

Smart City local and national Centres for Environment-

functionality, accessibility and safety after a disaster has

friendly Energy Research (CEER) should enable Norway

occurred. Most simulation tools emphasize buildings,

to be the front row in both the European context and

users or networks, not the interface between them,

in the cooperation with China. With the emergence of

and experts are educated and trained accordingly. It

ICT solutions for energy planning and management,

is therefore difficult to model and optimize synergies

Norway can come to play a new role in the development

for energy efficient buildings that interact with energy

of comprehensive quality energy.

73

R&D recommendations:

policy recommendations:

• Development of optimized energy

• Development of Key Performance

efficiency and attractive outdoor

Indicators that enable definition and

spaces customised to local climate

assessment of added value and cost

conditions.

for Smart Cities.

• Development of systems for optimized

• Development of a Knowledge Platform

management of energy demand,

with tools, pilot projects, and

production and storage, including

monitoring of Living Labs.

ICT for diagnosis, monitoring and visualization.

• Development of solutions for production of decentralized renewable energy integrated in the urban infrastructure.

• Development of solutions for increased energy efficiency through synergies with systems for water and waste.

74

measures

for sustainable societies

75

The main challenge in designing a sustainable energy system lies in that socio-economic benefits of renewable energy are not monetized in the marketplace.

- IEA Renewable Energy Technology Deployment (RETD), 2011

76

n or way a s provide r of fl exibility

Tuning in with a new paradigm

The transition towards a sustainable energy system will obviously not be completed overnight.

There will be a transitory phase in which more traditional ways of producing energy will coexist along new, more sustainable methods. This implies the need for a form of ‘flexibility management’ since renewable energy is dependent on natural (and thus fluctuating) resources and the fossil-fuel based production methods will be gradually replaced, while societies need a reliable energy supply.

Over the next 30 years the European energy system

Norwegian

hydro

power

reservoirs

and

Pumped

will need more flexibility. This is mainly caused by the

Storage Hydropower (PSH) can provide flexibility based

introduction of increasing amounts of intermittent

on storage over the relevant time horizons. It will be

renewable power generation capacity in wind and solar

necessary to build new PSH or to increase capacity in

PV plants, leading to new requirements for capacity

existing plants to provide the flexibility needed to

markets and reserve markets. Weather conditions like

handle weeks of low wind, but there is no need to build

low or high wind generation with duration from a few

new reservoirs in order to offer this flexibility.

days to a few weeks also creates the need for energy storage and flexibility. This need for flexibility arises on

Natural gas also can be used for balancing the varying

different time horizons and in different ways. First you

production from intermittent renewable energy sources.

have the opportunity to do energy exchange between

The natural gas value chain may offer flexibility from

markets as a consequence of price differences, for

several sources, such as: flexible production fields with

example short term energy exchange between

spot

large reservoirs, conventional storages (for example

markets and between balancing markets in different

abandoned reservoirs, aquifiers and salt caverns), LNG-

countries. Then you have the possibility to change the

storages and utilisation of the inventory in gas pipelines.

energy exchange profile between Norway and the rest of

Such sources may offer valuable flexibility.

Europe depending on the season.

Norway should take an active stance in identifying In addition come possibilities to develop flexibility

viable pathways for further development in Europe. In

services, for example by participating in markets for

our opinion an increased focus on providing flexibility

capacities or effect and for system services. In all these

services and energy exchange from the Norwegian

cases the flexibility and storage possibilities linked to

export system will be a way of securing hydropower and

the gas pipeline system and hydro reservoirs of Norway

natural gas an important role in the European energy

will be attractive solutions in terms of capacity and cost.

system. We recommend starting exploring business

This can generate a potentially high income for Norway.

models for such flexibility services.

The flexibility of hydropower is well known, but the potential to provide the same kind of services in the

If Norway wants to take a role as a provider of flexibility,

natural gas systems (fields, storages and pipelines) is

investments in HVDC cables to Europe are needed.

potentially equally high but more unexplored.

The capacity needed is highly dependent on EU policy,

77

market access and the planned use of the cables for

uncertainty. We recommend to enter into EU-wide or

exchange and services. The main risk comes from

bilateral agreements that reduce this risk by addressing

political uncertainty regarding climate policy and the

the division of costs, revenues and risk between the

instruments used to create an environmentally friendly

participants in the relevant value-chains and between

energy system. Capacity and effect markets will be

the relevant countries.

established and it is of high importance to prevent that poor design makes them a barrier to the progress of

The Norwegian natural gas pipelines are highly utilised

cross-border market integration and competition. This is

and will be so the coming decade, providing a cost

a major governance challenge that must be addressed

efficient energy supply network to Europe. Utilisation of

actively by Norwegian stakeholders concerned with the

the storage capacity in the pipelines may offer additional

provision of flexible energy services to Europe.

value in the future, provided a market for such services is developed. We recommend that the tradeoffs between

It is doubtful if investments in cables of the size

increased costs and the potential value provided by

needed to handle the future demand for flexibility will

these by such storage services is further investigated,

happen on the Norwegian side under today’s policy

and that relevant business models should be explored.

78

t h e po litic al d i f fic ulty

Renewable Energy in a political climate

Major changes towards a more sustainable society are not only played out through engineering, but also through the political domain. Furthermore, societies are made up of members that have a democratic right to vote and thus to influence decision-making. These processes have a dynamic of their own, and careful political action is needed to implement necessary measures in a democratic manner.

Humanity has the capacity, ingenuity, technologies and

legislate or implement. Media and public debate often

resources to create a better world. However, the lack of

explain this disparity with reference to a lack of political

appropriate institutions, coordination mandates, political

will. It is a grossly oversimplified diagnosis.

will and governance structures make the task difficult.

A research- based approach will take the position Global Energy Assessment: Summary for Policymakers,

that the political opportunity space is formed through

2012, s. 8

interaction between three main factors. One is the parties’ preferences and perceptions. The second is the

A well-functioning energy system shall meet at least

distribution of power and influence between parties

four quality requirements

Firstly, it should provide

(more precise: the distribution of power over the

universal access to energy that can ensure the generally

configuration of preferences). The third is the institutional

accepted minimum quality of life. Secondly, it must be

framework (‘rules of the game’; organizational structure

(ecologically) sustainable as defined by the Brundtland

and associated resources). Most of us have multiple roles,

Commission’s – i.e safeguarding the present generations

and the preferences that we express through professional

needs without compromising the ability of future

practice or consumption do not always point in the same

generations to satisfy their needs. Thirdly, the energy

direction as those we express

system shall ensure secure access for consumers, a safe

(through elections and discussions). Power is unevenly

working environment for everyone who works with

distributed in all known communities. In order to

manufacturing and distribution, and protection against

identify the scope for change, it is particularly important

harmful side effects for the environment. Fourth, the

to identify ‘veto players’ and ‘winning coalitions’ Veto

system shall be cost effective, i.e realizing the three

players can block change, winning coalitions can drive

other requirements at the lowest possible cost.

changes through. Restructuring is difficult where there

as citizens in society

are many veto players that have mutually different The above quote from Global Energy Assessment should

preferences. The number of veto players increases the

remind us that our ability to accomplish these objectives

more support the rules required in order to make valid

depends not only on technology and economics, but also

decisions increases. In complex systems, coalitions of

to a high degree of political institutions and processes.

constructive “pushers” may prevail, often through starting

Many solutions and projects that satisfy one or more

out by adapting measures that the coalition members

of the above criteria, may simply not be possible to

can achieve through cooperation. When these “pushers”

79

succeed , we often see that others follow.

Political feasibility is of course not a requirement in line with universal access, energy security, and sustainability.

The fact that a measure is possible , does not necessarily make it desirable. In working for change to sustainable energy systems knowledge of the regulatory framework and the mechanisms that shape the political opportunity space is imperative to judge success. In this support function, Norwegian research communities have a lot to offer.

80

g ree ning t he econo my

Optimal policy design for greening the economy

Institutional tools such as taxes can be an effective incentive to choose a more sustainable alternative in for example transport or housing. It makes sure that those who use the largest amount of energy and emit the highest amount of CO 2 pay a fair price for their choices. However, the question emerges if measures like these are enough to function as incentive.

Emissions of greenhouse gases have increased in Norway

According to economic theory, a cost-effective emissions

According to the Kyoto agreement, average annual

reduction can be implemented by imposing the same

emissions in Norway for the period 2008-2012 should

price on emissions for all sources, either as a tax or

not exceed the 1990 emission level by more than one

as a price of tradable emissions permits. This policy

percent. Emissions statistics from Statistics Norway and

rule reflects that all sources – measured per unit of

the Norwegian Environment Agency indicate that for the

greenhouse gas emission – cause the same damage, and

period 2008-2012, average emissions were about 6%

therefore should be treated equally. By putting a price

higher than in 1990.

on emissions, firms and households are encouraged to identify climate-friendly solutions: Firms can save money

For the petroleum sector and road transport, CO2

by switching to more climate-friendly ways of production

emissions were 75% and 30% higher than in 1990,

and households may experience that climate-friendly

respectively. Norway met its Kyoto requirements

solutions are cheaper and more attractive than the

through extensive purchase of emissions allowances.

standard alternatives. Using available information and

If, however, Norway in the future aims at reaching parts

creativity, agents can choose which abatement efforts to

of its international greenhouse gas obligations through

undertake. A nice example is Statoil: According to the

domestic abatement, the policy instruments aimed at

company’s web site, early in the 1990s an emission tax

mitigating domestic emissions must be radically sharpen.

on extraction of petroleum spurred Statoil to remove CO2 from extracted natural gas by injecting the gas in

Use green taxes to reduce

deep geological formations below the Sleipner platform.

stationary emissions Supplement green taxes with The Norwegian Parliament has passed a regulation

other instruments to reduce mobile

banning oil-based heating from 2020. If effective, most

emissions

emissions from stationary combustion, which amount to almost 20% of the Norwegian CO2 emissions, will be

By imposing a price on CO2, producers and consumers

removed. In order to reduce emissions from the remaining

have an economic incentive to choose more climate-

stationary sources, that is, primarily manufacturing and

friendly technologies. Demand

extraction of petroleum, other policy instruments need

technology will then increase, making R&D in climate-

to be implemented.

friendly technologies more profitable. But is pricing CO2

for

this

type

of

81

emissions sufficient to spur innovation and diffusion

to electrical cars or hydrogen-based cars as the main

of climate-friendly technologies, for example, in the

transport technology may therefore require that the

transport sector?

government offers either a subsidy to purchase the vehicle or finance investment in infrastructure.

At present there are two main technologies for climate-

Expansion

of

infrastructure

may

be

expensive,

friendly road transport; electrical cars and hydrogen-

which suggests that either extensive development

based cars. Transition to each of these technologies

of infrastructure should be undertaken infrequently

requires expansion of load stations. In an early phase

or society should choose technologies that do not

when there is few clients willing to acquire a new type

need extensive investment in infrastructure. It may

of car, there may be limited supply of load stations

be beneficial to investigate a number of alternative

without government interventions. This is similar to the

technologies, but to implement only very few of them.

history of the telephone and email; the first persons

In addition, it will not be efficient if Norway invests in

using these technologies obtained limited benefit, but

infrastructure of another road-traffic technology than the

as more people started using them the benefit increased

other European countries; it may be wise to coordinate

for everybody (positive network externalities). Transition

the choice of road-traffic technologies.

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new recommendations for progress

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In the national arena Norwegian interests are in focus. Knowledge to support policy decisions and ensure value creation based on our natural resources, and technology development to strengthen our industry’s competitiveness is the main issues. The national effort within the selected strategic areas must cover the value chain from basic, to applied research and demonstrators. The size and quality of the effort must at a level that builds international competitive and attractive research teams.

The European arena is our home market for research. To realize the value of Norwegian energy resources we have to develop European solutions together with actors from our neighboring nations. We have to be attractive partners to European research institutions and industry. We are fully integrated in Europe’s SET Plan effort to rebuild its energy supply system to become sustainable, and should naturally take a lead in several areas based on our strength in renewable energy, renewable energy industry and renewable energy research.

On the global arena technology does not recognize borders. Energy technology industries are truly operating and competing on a global market. This means that energy technology research in any country must be at an international top level to be competitive, requirements that also apply for Norwegian renewable energy R&D. Small nations like Norway cannot cover all nations and all topics at this level of ambition, and should carefully seek strategic alliances to develop the best technology. We should also take part in lifting the level of wealth in the less developed countries in the world through assisting them in developing their own renewable resources and technology, a cornerstone in growing wealth.

The following recommendations are given within this framework. This does not mean that Norwegian renewable energy R&D only applies to Norway. Its main purpose nationally is to build a solid and sufficient knowledge base to serve its government and industry in acting nationally, in Europe and globally. In times where change and rebuilding is needed, research is a key element to succeed.

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n or way as a cou ntr y

Towards an innovative knowledge economy

Knowledge-based policy decisions Over the past few years, Norwegian investments in sustainable energy research and education have built a strong technological, economic and social science expertise in the field of renewable energy. This expertise should be further utilized as a foundation for energy-related policy decisions.

Recommendation: •

Establish a cross-disciplinary ‘Energy Competence Council’ In Norway inspired by the model for Germany’s ‘Energiwende‘ working operationally with the Government and ministries.

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Long term Nor wegian targets for research, development and education in renewable energy Norway is an energy nation. Continued focus on developing these resources and the industry that make use of them are essential for securing our future wealth. Continued maintenance and develop of competence and expertise is at the core of this effort. A long-term education, research and demonstration policy is crucial.

Recommendations: •

Establish clear policies for Norway’s role as a lead nation in building a low emission energy supply system to prevent global heating.

•

Continue the strategic R&D commitment initiated by the Climate settlement with substantial thematic research programs like EnergiX and Climit, and the FME centers to ensure a solid national base for policy decisions, industrial innovation and make our research institutions attractive partners internationally.

Complete the innovation chain sector development of renewable energy Today’s innovation- and industrial development in the renewable energy sector does not live up to our high national aspirations. A key to realizing our ambition is to strengthen the weakest parts of the innovation chain.

Recommendations: •

Strengthen the ‘Researcher project-Blue Sky’ RCN funding scheme to cultivate the most innovative ideas.

•

Expand the ‘Forny’ RCN project scheme to close the gap between research and demonstration.

•

Establish large-scale demonstration projects in key national priority areas.

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n or way in eu rope

Developing a strong European profile

EU - Nor way's 'home market’ within Research, Development and Training in Renewable Energy Harvesting the potential values from our energy resources and related industry development is impossible without European collaboration on a broad basis, from R&D to policy development. Research is often the starting point of these processes and forces an increasingly stronger connection to the European research cooperation, and specifically the SET Plan.

Recommendations: •

Develop and maintain a sustainable funding model that enable Norwegian research institutions to actively pursue leading and performing roles along the whole specter of the European R&D arena, in practice strengthening the MVO and STIM-EU instruments.

•

Work together with European countries with common interest to establish Berlin model (‘EU FME’) R&D and Demo programs within Norwegian priority areas, and develop funding mechanisms for this kind of instrument.

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Bring Nor wegian industr y to Europe To contribute to Europe’s 2020 goals, Norwegian companies, research institutions and governing bodies work will need to work actively and closely with European partners. On the European scene we find the same type of actors involved. Our industry have a best chance of success when the Norwegian triangle is coordinated and in “parallel” interaction with similar actors in other nations or at the European level.

Recommendation: •

Develop processes for targeted joint efforts by the knowledge institutions, government and industry to establish our industry in the middle of the renewable energy innovation market in Europe.

policy EU, member states SET SG

institutes, universities

industr y

EERA JPs

ELLS

R & D

demo & deploy

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n or way in t he world

Global citizenship through competences

Work with the best research groups in the world To create a competent, high profile and internationally visible Norwegian research and education environment in renewable energy, we need to work with the very best. We need tools that facilitate active research collaboration with the exchange of people and resources (in strategically important areas). This type of cooperation is not given enough credit in today’s evaluation scheme and needs to be given special consideration to give the predictability and trust needed for international collaboration.

Recommendations: •

Portfolio considerations in the annual RCN calls (in e.g. the EnergiX program) to ensure funding for truly collaborative projects and researcher exchange.

•

Initiate ‘joint calls’ with selected countries (Japan, U.S., China) on selected topics of common interest.

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Nor wegian renewable energy exper tise for development To reduce GHG emissions, deploying renewable energy in developing countries is essential. Norwegian research communities have great energy expertise on both technology and deployment that we should take advantage of, also in Norwegian aid- and development programs. There are endless opportunities to contribute to the Government’s ‘Energy for All’ initiative.

Recommendation: •

Start a strategy process examining how applied research can be used as a tool for development for self development, combining lessons learned from the Norwegian R&D and Innovation schemes with the development agencies own experience. The Norwegian Research Council, Norad, the universities and research institutions together with the industry are obvious participants in such a process.

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Endnotes Sustainable energy systems [1]

IPCC Climate Change 2013 - WG 1 Contribution to the Fifth Assessment Report

[2]

IEA World Energy Outlook 2012

Wind power [1]

GWEC Global Wind Statistics 2012

[2]

IEA Energy Technology Perspectives 2012

[3]

EWEA (2013) Deep Water. The next step for offshore wind energy.

[4]

NVE (2010) Offshore wind power in Norway.

Proposed areas for strategic environmental assessment

[5]

NVE Rapport Nr 9/2009: Vindkart for Norge

[6]

Enova (2007) Potensialstudie av havenergi i Norge

[7]

TPWind Strategic Research Agenda (draft, published March 2014)

[8]

INTPOW Offshore Wind Norway Market and Supply Chain, 2012

[9]

NVE (2012) Havvind – Strategisk konsekvensutredning

Transport [1]

Petter H. Heyerdahl, UMB

[2]

www.ssb.no/emner/10/10/10/petroleumsalg/arkiv/tab-2011-03-16-01.htm

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Endnotes Smart Cities >

Conte, E, Monno, V, 2012, Beyond the buildingcentric approach: A vision for an integrated evaluation of sustainable buildings, Environmental Impact Assessment Review, 34, pp.31-40.

>

EC, 2011, A resource-efficient Europe – Flagship initiative under the Europe 2020 Strategy. COM(2011)21 Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions. <http://ec.europa.eu/resource-efficient-europe/pdf/ resource_efficient_europe_en.pdf>

>

EC, 2012, Smart Cities and Communities website, hosted by the European Commission, http://ec.europa.eu/ energy/technology/initiatives/smart_cities_en.htm (last accessed 29 April 2012).

>

ECTP, 2013a, Towards the creation of a high-tech building industry. Turning energy efficiency into sustainable business. Research & Innovation Roadmap 2014-2020. An initiative of the European Construction Technology Platform ECTP. http://www.ectp.org/cws/params/ectp/download_files/36D2534v2_E2B_Roadmap_draft.pdf

>

ECTP, 2013b, The ReFINE roadmap. Building up infrastructure networks in a sustainable Europe. An initiative of the European Construction Technology Platform ECTP. http://www.ectp.org/cws/params/ectp/ download_files/39D2500v1_reFINE_Roadmap_Draft_P.pdf

>

Larsson, N, Hovorka, F, Salat, S, Bourdic, L, 2011, From Smart Grids to Synergy Grids, Proceedings of the SB11 Helsinki World Sustainable Building Conference, Volume 1, pp.46-47.

>

LEIPZIG CHARTER on Sustainable European Cities (2007) Adopted by the European Council of Ministers on 24

>

May 2007. http://www.eukn.org/E_library/Urban_Policy/Leipzig_Charter_on_Sustainable_European_Cities

>

Salat, S, 2012, Cities and forms: on sustainable urbanism, Editions Hermann.

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Credits This report has been compiled in the period 2013-2014 as part of the activities of the SFFE (Senter For Fornybar Energi/Centre For Renewable Energy) in Norway. The texts have been delivered, checked and screened by their respective contributors. Editing and concept by Gabriella Tranell and Otto Paans.

The photographs in this report have been purchased via Shutterstock, with exception the pictures used on pages 10-11, 24, and 80-81, which have been supplied by TiC,

The cover image has been is a ISS Expedition 34 Crew Image Science & Analysis Laboratory, NASA Johnson Space Center derivative work. The serial number of this photograph is ISS034E016601. Obtained via: [http:// en.wikipedia.org/wiki/Earth#mediaviewer/File: ISS034E016601_-_Stratocumulus_Clouds_-_Pacific_Ocean. jpg]. This picture is available for the public domain.

Graphic design by TiC - Thinking in Concepts (2013-2014), any copyright on individual graphics belongs to TiC.

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