hse to the world - statkraft · statkraft is one of the companies that could play an important role...

Et magazinE statkraft EmployEEs I nr. 1 2011

The snowman calleThLearn why you should listen to mountain folk

FeaTure:

Taking The world

by waTerThe world of

Statkraft is getting even bigger

hse To The worldNew markets set new requirements for health and safety.

Around the world in 40 pages

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Delivering growth in pure energy – this is the title of our new strategic platform. There are several good reasons why it makes sense.

Currently, two-thirds of the world’s energy production comes from fossil sources, and the resulting emissions make up 40 per cent of the total greenhouse gas emissions. We also know that 2.5 billion people across the globe have poor, or no, access to electricity. Growth within clean energy is therefore very important, both to cut greenhouse gas emissions and to combat poverty while contributing to economic growth.

Statkraft is one of the companies that could play an important role in this growth. Our ambiti-on is to maintain our position as Europe’s largest hydropower producer and to be a significant con-tributor to flexible power in Europe. We will also continue investing in hydropower in emerging markets in other parts of the world.

We now have a focused strategy founded on our core expertise as a producer, developer and

market player. In the years ahead we will grow within flexible energy production and market operations in Europe, international hydropower, wind energy, district heating and small-scale hydropower. For Statkraft, this strategy will mean increased value creation, as well as increased expertise in the countries where we are established. Statkraft’s owner supports our strategy, and has strengthened our equity.

We have the expertise, the equity and the will to invest in clean energy. The time has come to do it. I am confident that all Statkraft employees

will continue to make important contributions as we build on our new strategic platform.

Christian rynning-tønnesenCEO

time to deliver

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Contents

Chief editor: Christer gilje

[email protected]

The editorial staff: Birger Baug, irene MacCallum, lars Magnus günther, Kathy Korte, Judith tranninger, gunilla lundén

Design and production: red Kommunikasjon / Christen pedersen

On the cover: Mads Magnussen, Claudia hauge and Jon Aarbakk.

Coverphoto: ellen Johanne Jarli

Print: rK grafisk AS

Circulation: 5000

Your feedback is welcome at: [email protected]

04 Renewable successStatkraft energises students. 06 Second Knapsack nearsKnapsack II is almost ready. Only the talk with the neighbours remains.

08 In the familyPG Sweden goes against the flow and insources employees. 12 Getting the world championships on the right trackMeet the Statkraft employee that made sure your favourite could ski. 16 Statkraft’s special snowmenFind them in the photo feature. 22 FEATURE: Water in a new worldStatkraft’s world is about to get bigger. 32 Growing in PeruSN Power is thriving in Lima.

36 HSE to the worldIt will become easier to learn how to avoid accidents. 38 Woman of the futureLearn how HR recruits the best people.

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powerfulStudentS

The wind farm on Smøla plays an important role in the wind energy film at “The Energy Academy 2.0”.

Statkraft’s facilities play an important role when norwegian students are updated on energy.text CAto gJertSen photo dAg SpAnt

5peopLe & power

statkraft is one of the most important companies that the Norwegian state owns. The company manages significant Norwegian hydropower resources to the be-nefit of us all. Statkraft has also developed into a leading producer of renewable energy in Europe, and will play an important role in the years ahead with its contribution to increased production of renewable energy, both in Norway and with a larger European perspective.

The Norwegian government has set ambitious clima-te policy goals, both domestically and internationally. In order to succeed, we depend on someone actually investing, developing and producing the increased share of renewable energy that we need. We need organisations with employees and expertise that are able to do this within sound technological and financial frameworks. As the regulatory authority, we facilitate development to make this possible.

Statkraft has unique expertise and experience from a century of managing Norwegian hydropower resour-ces. This, along with its position as a leading producer of renewable energy in Europe, enables the company to contribute to a more climate-friendly development, both in Norway and abroad.

The government has stated that we want to develop Statkraft into an engine for renewable energy produc-tion. Just before Christmas, the government proposed, and a unanimous Storting adopted, giving Statkraft a financial framework which facilitates a forward-leaning focus on renewable energy in the time ahead.

As the owner of the company, we are proud of Statkraft’s development in recent years. You who work there have contributed to the development of world class expertise within different parts of the energy chain. We expect that you will develop this further and utilise this unique expertise in your continuous efforts in Norway and internationally. This will provide the Norwegian state with significant revenues, and be important in developing Norwegian expertise within renewable energy.I wish you the very best of luck!

THE EnvIRonmEnTAl FoRcEin each issue of people & power we invite various environ-mentalists and others in norway and europe to present their view on the energy solutions for the future.

Minister of traDe anD inDustry, tronD giske

statkraft has been an important partner in producing the films

since the very start. ole André SivertSen, progrAMMe hoSt of “the energy ACAdeMy 2.0”

in “The Energy Academy 2.0,” Norwe-gian students learn about energy and power in an exciting and unconven-tional way. Statkraft is the biggest contributor to the project, which is

based on an already huge success in the Norwegian educational system. “The Energy Academy” first saw the light of day in 2004, and was then a series of 16 films made for lower secondary students. The films dealt with subjects ranging from what energy and power are, to explaining the challenges associated with various energy sources.

outDateD. Former programme host for the popular science series “Newton” on Norwegian public television, Ole André Sivertsen, has written the script for the films, which he also hosts. He says the films can be used in various ways as part of the education, such as introduction to a new subject, or as basis for discussions on various parts of the science curriculum.

“The films were very well received in 2004, but we felt the time had come to update them,” says Sivertsen. “The visuals are quickly outdated, whether in terms of grap-hics, animation or clothes and hairstyles. As a student, you don’t want to see eight-year-old films from what feels like a bygone era.”

the future is now. Changes in content were another reason why “The Energy

Academy” was updated to a 2.0 version.“In the first version for instance, we

speak about expected developments in the future,” says Sivertsen. “Some of these changes have already taken place, besides, some of the general information needed to be updated as well. We have also made four films on brand-new subjects – energy efficiency, natural gas power, heat pumps and energy and climate.”

Another new feature is a higher priority for upper secondary school curricula targets. As it turned out, the original films were used extensively in upper secondary schools as well, and it was therefore natural to include subjects from these curricula in the new version.

statkraft iMportant. Statkraft has been an important partner in producing the films from the very start – not just financially. According to Sivertsen, com-pany employees have contributed useful information, and have always respected that the production team has tackled issues with an independent editorial view.“Enova and the Norwegian Centre for Science Education are the two other part-ners behind “The Energy Academy 2.0.” The latter decides the science content in schools, and we are very proud that they wanted to be a part of this after seeing the original films,” Sivertsen says.

renewABle energy – somebody’s got to do it

Ole André Sivertsen is the star and the man behind

the new, updated films.

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late last suMMer, the Statkraft board gave the thumbs up for investments to construct a second power plant at Hürth-Knapsack, with an installed capacity of 430 MW. Last autumn, the processes to receive approval for the necessary gas pipeline started, and the EPC agreement with Siemens for the construction of the power plant was signed.

Dialogue with the neighbours. As this is in fact two different approval processes, the con-struction of the power plant and the gas pipeline have been defined as two separate sub-projects. Statkraft received the temporary building licence to construct the power plant last year.

This spring, final talks with the affected neigh-bours to the gas supply pipelines will be held. As part of the process, the neighbours must consent to Statkraft laying the pipeline across their property, and for the most part, the pipeline will follow existing pipelines.

“In mid-March we had a public information

meeting where the final questions before an approval for the pipeline were answered and resolved,” says Jörn Hackbarth, project manager for the gas pipeline. In February, the EPC contract for the gas pipeline was signed with Friedrich Vorwerk KG (GmbH & Co).

preparations starteD. Preparations for the con-struction have already started on the lot where the new power plant will be built. This includes check-ing the soil conditions under the planned building.

“We need to calculate if the ground has the necessary load carrying capacity,” says Markus Rädler, project manager for the construction of the power plant. “And it’s not too long until the ground breaking starts with setting up founda-tion pillars for the actual foundation.”

It is expected that the final building licences for the power plant and pipeline will be issued this summer.

KnApSACK ii tAKing ShApe the preparations for Knapsack ii are already underway. final talks with the neighbours to the new gas pipeline will be held this spring.

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Clean anD flexible energy for as much as NOK 80 billion. This is the frame for Statkraft’s strategy in the coming four years. The task is to deliver more flexible and clean kilowatt hours, to the benefit of the company and owner, the envi-ronment and the countries where we operate.

Expectations of strong growth. In mid-February, president and CEO Christian Rynning-Tønnesen presented Statkraft’s new strategic platform for the 2011-2015 period. The platform is a contin-uation of the strategy adopted last summer, and is based on what Statkraft does best and what the most attractive markets are likely to be in the time ahead. The strategy is also based on a clear expectation of continued growth within renewable energy, in Europe and in emerging markets in Southeast Asia and South America.

Leading up to 2015, a total of NOK 70 to 80 bil-lion will be invested. It is expected that a quarter of this amount will be made in Norway, while the remaining investments will take place in selec-ted European markets, as well as Southeast Asia and South America through SN Power.

half is international hyDro. International hydropower will make up about half the future investments, focusing on Turkey and Albania, as

well as other projects through SN Power. At the same time, one-third will be invested in flexible hydropower generation and market operations in Europe. Norwegian and French hydropower, together with German natural gas power, will play important roles as well.

Wind energy will also grow, in the form of on-shore wind energy generators in Norway, Sweden and the UK, and offshore wind farms off the British coast. In total, wind energy will comprise up to 10 per cent of the investments in this period. A corresponding amount will be invested in district heating, small-scale hydropower and regional companies, mainly in Norway.

hse aMbitions. This strong growth, particularly in new markets, requires that considerations for health, safety and the environment be at the forefront. An important part of the strategy is therefore our ambition of zero accidents and zero serious environmental incidents.

The broadness of the strategy is also impor-tant, as it will ensure positive development of Statkraft as well as contribute to improving the environment and economic development in the countries where the company operates and invests.

Pure informationat the start of the year, new information brochures were presented for Statkraft’s six power plants in Germany: Dörverden, Emden, Erzhausen, Knapsack, Robert Frank and Werrawerk. The eight-page publications contain magnificent photos and vital information about each power plant.

The reader gets some general information about Statkraft as well as useful information on the history, operations and technical details about the individual power plant. Easy to un-derstand illustrations show how electricity is generated using hydropower, natural gas or biomass.

If you want to take a closer look at the brochures, they are available in PDF format from www.statkraft.de.

we will deliver More pure energy

50If all coal-fired power plants were replaced by natural gas power plants, CO2 emissions from Germany’s energy production would be reduced by 50 per cent.

Everything points towards a new mate for the natural gas power plant in Knapsack

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On 1 January, PG Sweden almost doubled the number of employees, when Statkraft took over the maintenance of its power plants.TexT ChriSter gilJe

Maintenance comes "home"

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ever sinCe statkraft acquired the first power plants from E.On in Sweden in 2005, day-to-day maintenance has been outsourced. For just as long, the Swedish orga-nisation has discussed whether it should bring the maintenance work back into the Statkraft fold. On 1 January, the operation was carried out.

iMproveD hse Control. “This is not because we are dissatis-fied with the job done,” says Per Nordlund, regional director of PG Sweden. Neither was the reason a belief in short-term cost savings, but rather that in the long term, there might be money to be saved.

“The primary reason is flexibility, including having improved correlation between day-to-day maintenance and market operations, as well as to improve power plant uptime,” says Nordlund. “We also feel that the employees will get a greater sense of belonging and ownership of the power plants as Statkraft employees, and as a result, they will get more in-volved. Last, but not least, this gives us better control with the HSE work.”

wage Most iMportant. Prepa-rations started as far back as the

second half of 2009. When the project itself got underway in 2010, organisation and recruitment were important areas, as were talks with the external service providers. It was also important that a contin-gency plan was in place on the very day of the changeover.

“Then there were all the practical issues: cars, computers, office space, safety equipment – and the wage system, that one might have been the most important one of all,” Nordlund says with a chuckle.

“It was also important to provide information both to existing employ-ees and our new colleagues, and to ensure a good dialogue with the unions.”

flexible anD positive. Going from 65 to 123 employees requires extensive reorganisation. Nordlund is pleased with the result.

“The project and the employees have done a fantastic job, and the new employees have demonstrated a very flexible and positive atti-tude,” he says. “We’re talking about more than 50 new employees, and it will take some time before they feel completely at home, but it is looking good.”

trainees get bloggingstatkraft’s new Class of trainees have their very own blog about how they experience the training and their workdays in the company.

The blog shows students and other potential employees the op-portunities available to them in Statkraft. Other curious employees can also learn how our youngest colleagues view the company.

Alexander Berg is a trainee in Public Affairs. Together with Karolina Orleanski, he is in charge of updating the blog, where all the trainees contribute.“As a trainee you learn a lot about the company in a short

period of time, and when we are nine trainees in different parts of the company, we get to show off many aspects of the operations," Berg says.

The trainees have their own section on the Statkraft website, but you can also follow them at: statkrafttrainee.wordpress.com

the Monthly information meeting on webcast is now established as the president and CEO’s most important channel to reach all employees with information.

Christian Rynning-Tønnesen heads the meetings from the auditorium in the head offices once a month and the meetings are webcasted in Nor-wegian, English and German. Those who wish to follow the webcast without translation can also do so, and listen as the participants speak in Norwegian and English.

Each month, Rynning-Tønnesen looks at highlights from the previous month, and invites executive vice presidents and others to present projects or a department. In addition, you can pose questions to the CEO or the introductory speakers.

The goal is to develop these meetings further so that they give employees the best possible insight into the most impor-tant issues in the group. If you have any feedback or input on the meetings or have suggestions for improvements, please send them to [email protected]. Please see the intra-net for the upcoming webcast.

the Ceo’s own channel

Meet the new bloggers, Statkraft’s trainees in 2010. In front, from left: Ingrid Björklund, Mari Stausland, Nina Holden, Karolina Orleanski and Ruth Von Heusinger. Back row: Johan Boström, Gûran Öscan, Gustaf Nissen and Alexander Berg.

The project and the employees have done

a fantastic job, and the new employees have demonstrated a very flexible and positive attitude. per nordlund, regionAl direCtor, pg Sweden

Some of the more than 50 new employees gathered. Regional director Per Nordlund has a bright outlook.

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Dörverden power on showfroM 1907 until 1914, workers laid down stone upon stone to build the Weser run-of-river plant at the Dörverden damn. The power plant is now on permanent exhibition at the new culture centre Ehmken Hoff in Dörverden. The official opening was 1 March.

The Weser run-of-river plant is Germany’s oldest hydropower plant, and a total of four banners in the exhibition hall are dedicated to the early years. Visitors also learn quite a bit about Statkraft, the people who work at the power plant and the technical operation of the facility.

“The history of the power plant is also the history of the village and the people who live here,” says Maik Thalmann, head of Statkraft’s German power plant group. He emphasises that it is the people who made the power plant, and later, the Ehmken-Hoff cultural centre, possible.

The Ehmken Hoff cultural centre comprises two protected former farm houses that we rebuilt behind the town hall in the middle of the village. Thanks to the combined efforts of the main sponsor, H. F. Wiebe Stiftung, the villagers and support from Statkraft and other companies, a vibrant centre for concerts, exhibitions, youth projects, senior citizen programmes to name a few was established.

“i really Don’t think a different regula-tory system will work better than the market incentives already in place,” explains Rynning-Tønnesen. “It’s embedded in the market regime that power producers constantly try to generate energy when they can get the most for their product. This means that we try to save water until it’s most needed. When there’s a lot of precipitation, we try to produce more, to avoid water overflowing the dams.”

During Pareto’s annual power industry con-ference in January, Rynning-Tønnesen also spoke at length about the need for constructing more power cables to other countries. The Statkraft CEO wants two cables to the UK, two to Germany and another to the Netherlands.

“I don’t want to rule out the possibility of us being a co-owner, but Statnett should be the main owner and developer,” says Rynning-Tønnesen, who has the same view on a possible cable between Norway and Germany. He says the motivation for con-structing cables is the need for flexible power in our neighbouring countries. But the cables would also help us during cold winters.

“More cables will make it possible to im-port more power during pressured situations such as we saw last winter,” he says. “And the opposite if there is a lot of precipitation and greater production of power; the cables will enable us to sell our power to a wider market.”

“Pleased with the power market”during the great debate on the high electricity prices in norway this winter, several players suggested power producers should be penalised financially if the reservoirs run dry. however, statkraft president and ceo christian rynning-Tønnesen believes the current system is good enough.

WANTS NEW CABLES

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Statkraft turns up the heateffeCtive 1 MarCh, Trondheim Energi Fjern-varme has changed its name to Statkraft Varme. All signs on vehicles and buildings will be changed, and a separate customer website has been estab-lished for all Statkraft’s district heating customers.

The process also means that all Statkraft’s district heating activities will now be managed from Trond-heim – including district heating plants in Sweden.

5,000

statkraft is requireD to re-lease water from the Sysendam-men dam in Eidfjord to the Vø-ringsfossen waterfalls during the summer season. The Leiro power plant is now being constructed to utilise the water. The plant will have an installed capacity of approximately 5 MW and an av-erage annual production of about 8.4 GWh. The Leiro power plant is constructed in connection with existing bypass pipes in the valve chamber in the mountain below the dam. Here, a branch is made

from the existing bypass pipe, which then leads the water to the Leiro power plant. The runoff is then returned to the bypass tunnel by a cast-in drainpipe. The unit and the old bypass valve will, together with the regulation automatics for the Væringsfoss valve, ensure a stable water flow to the Vøringsfossen waterfalls in compliance with the licensing requirement of 12 m3/sec. The project must be installed, tested and have completed trial opera-tions by 1 June 2011.

The UK now has 5,000 MW of wind power installed, of which 1,300 MW is offshore. This gives the Brits more offshore wind energy generators in operation than the rest of the world combined, according to the industry organisation Renewable UK.

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The 11.4-tonne, 8.5 metre long drain pipe is ready to be transported.

new senior vice president of communications

bente e. engeslanD has been appointed Statkraft’s new senior vice president of communications. She is looking forward to getting started on 2 May.

“Statkraft is one of Norway’s most important companies, with very exciting international renewable energy initiatives,” says Engesland.

“I look forward to taking on this chal-lenge, which will provide me with unique opportunities.”

Before being appointed the new head of communications in Statkraft, her experience included positions such as communications director at the Directorate of Immigration (UDI), and head of the political depart-ment at Norway’s newspaper Aftenposten, as well as head of news programming and political editor at NRK, the Norwegian Broadcasting Corporation.“As senior vice president of com-

munications, I hope to contribute to Statkraft becoming even more visible in Norway,” she says. “It will also be important to build our network with colleagues in other countries – so that we encompass the entire Group, nationally and internationally, internally and exter-nally. The goal for the communica-tions department is to be an active part of strengthening our business activities and Statkraft as a brand.”

Fresh Senior Vice President of Communications: Bente E. Engesland

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the position

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arne sandvold

Arne Sandvoldposition: project manager hydropower in Statkraft.

education:

Structural engineer.

Marital status: lives at lake Sognsvann in oslo. Married, two children. Born and raised in Byåsen in trondheim.

outside of work: loves the great outdoors and is very in-volved in sports, both summer and winter. has a background in cross-country skiing, orienteering and military sports, and has been very active in encouraging his own and other children in cross-country skiing, orienteering and biathlon. two and a half years ago he was appointed the assistant race director for the cross-country ski events during the nordic world Ski Championships in oslo.

The TrailblazerMeet the man who earns a living by getting people on

the right track – be it hydropower in Laos or the Nordic world Ski Championships in oslo.

TexT SiSSel fAntoft PhoTo ellen JohAnne JArli

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it’s in my nature to get involved, and that means you need a pretty good excuse for

yourself if you say thanks, but no thanks, to something like this!

the position

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arne sandvold

as project manager hydropower in Statkraft, Arne Sandvold is no stranger to organising large projects. Then again, he did not hesitate when he was asked if he wanted to be the assistant race director for the

cross-country events during the Nordic Ski World Championships in Oslo.“It’s in my nature to get involved, and that means

you need a pretty good excuse for yourself if you say thanks, but no thanks, to something like this!”

Together with race director Bente Skari and as-sistant race director Bjørn Ståle Tennfjord, he for-med the top tier in the cross-country organisation, with executive responsibility for all sports-related matters during the cross-country events at the championships in Holmenkollen a few weeks ago.“I was asked two and a half years before the

world championships, and we spent that time planning,” says Sandvold. “Everyone has worked on a volunteer basis and spent their spare time on this, but during the world championships we more or less lived in Holmenkollen. It was a fantastic experience. Cross-country is Norway’s national sport, and the Holmenkollen arena is one of the best-known sports venues in the world. Our goal this entire time has been to host the best world championships ever, and I hope we did just that.”

on the military national teamSandvold grew up in the Byåsen district in Trondheim, and was an active cross-country skier and orienteering runner. He attended the ski academy at Ringve, with legendary skier from the 1982 Oslo Nordic Ski World Championships, Oddvar Brå, as his ski coach. However, he gladly tones down his sports achievements.“My own sports record is not all that much, but

I was a fair skier at the junior level, and was an active orienteering runner at a fair level until I turned 30, when our daughter was born,” he says. “That’s when I stopped competing actively, but I still do a few orienteering races in the sum-mer, mostly for the exercise. I’ve also done a bit

of ski orienteering, and for few years I was on the military national field sports team.”

Although Sandvold has retired as an athlete, he remained active in sports by getting involved with his children’s athletic pursuits.“When my son was 15-16 years old, I was the

umpire in the cross-country section of the Oslo Ski Association,” he explains. “My task was to establish a shared training and competition environment with a support structure across all the clubs in Oslo. Many teens quit active sports at that age, and a large and strong environment was key in making them continue.”

Sandvold’s involvement was noticed in the Nor-wegian ski community, and he was recommended to Bente Skari as assistant race director during the 2011 Nordic Ski World Championships.

Planned, rigged, marked and preparedThe race directors during the world championship were responsible for organising all the cross-coun-try events, including the cross-country combined.“We planned the race tracks and the venues, rigged,

secured, marked and prepared the tracks, organised

track guards, made sure the time-taking was in place and so on,” says Sandvold. “During the actual championships, we had 500 volunteers to help us. We also were responsible for coordinating with NRK, the Norwegian Public Broadcasting Corporation – this was the biggest event for them as well.”

He is full of praise for his collaboration with one of the most winning cross-country skiers of all time, Bente Skari.

we agreed that i could collect

flexi-time to take time-off during the world championships.

“She’s good and has a lot of experience from competing, but she’s also a celebrity,” he says.

“When we went on a study trip to Otepää in Estonia last year, there was a lot of media there to cover the World Cup. But many of them were almost more interested in Bente and her victo-ries in Finland.”

He is also full praise for the Holmenkollen National Venue.“There has been a lot of talk about how NOK 2

billion was spent on a ski jump,” he says. “But the truth is that we’ve gotten so much more than just that; a state of the art cross-country venue, a biathlon range, floodlit tracks, roller-ski tracks, artificial snow facilities and a brand new recruitment ski jump centre at Midtstua. There is no better location for the national venue for the national sport than right here in the capital!”

collected flexi-timeBefore accepting the job, Sandvold sat down with his supervisor at Statkraft, Tron Engebrethsen.“We agreed that I could collect flexi-time to take

time-off during the world championships. It worked out well, and the management has trusted me.”

Sandvold has worked in Statkraft for 28 years, ever since graduating as a structural engineer. “My job is to facilitate even greater genera-

tion of renewable energy in Statkraft, which, on my part, means hydropower,” he says. “I look at possible green field projects, expan-ding existing facilities and rehabilitation of old facilities. I’m both the project manager and the contract lead for some Norwegian projects while they’re in the development

phase, and then others take over as they are realised.”

But when it comes to international projects, Sand-vold continues into the actual construction phase.“Right now, I have a special responsibility to fol-

low up on a project in Laos,” he explains. “We’re expanding an existing facility with a new power plant and a large reservoir. I’m also on a project management committee for the Cargi power plant in Turkey. Here in Norway, I’m also the project manager for concept development of ‘Statkraft as a flexible producer,’ which is to establish pumped storage hydropower plants between reservoirs, so that Norway can be sort of a battery for Europe.”

With the significant development of inflexible wind energy in the North Sea, Europe will need plenty of “battery capacity,” for example. “We can play an important role in this, so that surplus energy from Europe can be stored in Norwegian reservoirs, and go back to the continent when the wind dies down,” says Sandvold, who did not go through world championship withdrawal when the skiers packed their medals up and travelled home.“It will be very nice to get back to work!”

The Dynamic Duo, but with her five World Championship gold medals, Bente Skari is the biggest celebrity…

Arne Sandvold was behind the most important tracks in the world in March 2011.

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the photo reportBetween them, technicians Tore Vikan (left) and Magne Pladsen of Power Plant Group Nore have several decades of experience with snow measurements on the Hardangervidda mountain plateau.

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snow measuremenTs

guarDing norway’s white golD

Statkraft’s snow measurers have more tasks than you would think. TexT CAto gJertSen PhoTo dAg SpAnt

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The PhoTo rePorT

our contribution is important to give nve the most precise basis to predict

the probability of flooding. nilS runAr SporAn, ChAirMAn of the river nuMedAlSlågen lAnd ownerS’ ASSoCiAtion

The first thing Magne Pladsen does when arriving at a predefined GPS location is to measure the snow depth at a handful of spots near the measurement point, so that the average depth is correct. He then pushes a cylinder (150 cm long and 10 cm diameter) into the snow to take a sample and measure the density.

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snow measuremenTs

A breather above a small Statkraft flow-regulating reservoir at Lake Halnedammen. The area does not have electronic remote monitoring, so the measurers make sure to stop by to check.

Tore Vikan takes down the measurement results, while Magne Pladsen in the background uses the

measurement rod to gauge the correct snow depth. The cylinders on the flatbed measure the snow

density. This can vary greatly, from powdery, light snow to heavy and wet snow.

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The PhoTo rePorT

every early spring, Statkraft’s employees do an inventory of nature’s own deep freeze, measuring snow depths and

density in the catchment areas for all the company’s reservoirs. The results give a good indication of the probabi-lity of flooding, and they are efficient tools for energy optimisation and generation for the following summer.

At the end of March and beginning of April, you can see the same sight all over Norway: Pairs of Statkraft employees on their ski-doos stop-ping in the middle of nowhere to dig in the snow, fumble with short pipes and long rods before getting back on the ski-doos and driving several kilometres to stop and do the process all over again.

This is a very important job for the company, and for the market in general.

“This is the so-called main measu-rement, which is done at a certain number of sites right before the snow starts to melt,” says regional hydro-logist Axel Lang of Region Eastern Norway. “In short, the crews measure the snow depth at certain predefined GPS locations. Then they thrust an open cylinder into the snow, close it and measure the snow density.”

The results are entered into a shared database and compared with measurements from previous years. This then gives Statkraft a better basis to plan the season’s energy generation, as well as predict where there is danger of flooding.

“All water flow regulators inform the Norwegian Water Resources and Energy Directorate (NVE) about the results shortly after they are ready,” says Nils Runar Sporan, chairman of the River Numedals-lågen Land Owners’ Association. “NVE also carries out separate measurements, but our contribu-tion is important to give NVE the most precise basis to predict the probability of flooding.”

A catchment area can span several thousand square kilometres, which means ski-doos are the only practi-cal means of transport for the snow measurers. HSE considerations are the reason why they always are two on the job with separate ski-doos. The standard equipment includes warm winter clothing, but also satellite telephones and avalanche beacons and receivers.

“This work requires experienced people, primarily as it reduces the risk of errors and inaccuracies during the measurements,” says Nils Runar Sporan

1 At Lake Halnedammen, there is a safety cabin that belongs to Power Plant Group Nore. Several employees helped build the cabin in 2005. This is where the measurers sleep in between shifts, and some-times, they have to weather blizzards here as well.

2 Although the crews take care when they drive, a ski-doo can flip. This situation was posed for the photographer, but when it actually does happen, it can be vital to have a colleague to help out, which is why the measurers always travel in pairs.

3 The measurements are done on solid ground. Here you see the ski-doo stuck in a wet area. The surface varies greatly. Some years, there is a lot of powder snow and little traction, while in other years, the snow is rock hard.

1

2

3

peopLe & power 21

Having warm clothes, as well as a change of clothes, is important, even

if it is mild. The weather changes suddenly, and the crew needs to

have the right equipment.

This work requires

experienced people, primarily as it reduces the risk of errors and inaccuracies during the measurements. nilS runAr SporAn, ChAirMAn of the river nuMedAlSlågen lAnd ownerS’ ASSoCiAtion

snow measuremenTs

22 statkraft

Feature

When Statkraft is conquering the world with hydropower there are ripple effects. The time is long gone when Pawan had to walk a day to have his rice milled.

Pawan’s second life

PH

ot

o a

lf b

er

g

23people & power

water in a new world

10Pageswater in a new world

Pawan’s second life

“Statkraft has growth ambitions, and a significant proportion of that growth is planned within international hydropower,” says executive vice president Øistein andresen. He

describes the possibility of turning water into energy – across the globe.text CHriSter gilje PHoto ellen joHanne jarli

waterworld

statkraft24

feature

“Profitable investments in renewable energy help generate economic growth and sustainable development,” says Øistein Andresen.

international hydropower is one of the main pillars of Statkraft’s investments in the time ahead. With a century of major developments in Norway, the natural next step for Statkraft is to look for new markets beyond our borders.

Former SN Power head Øistein Andresen now heads the business area International Hydropower, and sees great opportunities.

“The world is desperate for more renewable energy, and hydropower is one of the most cost-efficient solutions,” he says. “In the past 10 years, hydropower has become more accepted as environmentally-friendly energy. If you look at the scenarios drawn up by the International Energy Agency (IEA), a lot of renewable energy needs to be generated if we are to reach the goal of limiting global warming to two degrees. A significant proportion of this will come from hy-dropower. According to the prognoses, global hydropower generation must increase by 75 per cent by 2030.”

Major investmentsStatkraft wants to be behind a part of this increase. The company plans to invest up to NOK 70-80 billion over the next five years, and a large part of this will be invested in hydropower on several continents; through the parent company in south-eastern Europe, and through partially owned SN Power in a num-ber of Asian and South American countries.

“In southeastern Europe, there are many opportunities in Turkey now,” Andresen says, when we ask him to point out where the next major investments will come.

“Last year, we opened our first power plant there, and we are now

underway with the construction and planning of power plants two and three. We also hope to start construction in Albania in 2012.”

SN Power is already established in a number of countries, and has projects both alone and in partner-ship with local companies.

“For instance, our fantastic partner relations in the Philippines and India are exciting,” says An-dresen. “India is a major economy and is growing, so there is a large potential here. In Latin America, the company has a significant portfolio and a robust platform for further growth in both Chile and Peru.”

Not charityThe need for more hydropower is definitely there. The same goes for the possibility of making money. The latter is important when a com-pany invests in new projects.

“The investments we make must meet our profitability requirements,” Andresen stresses. “We’re not in the charity business; we invest on commercial terms. And we see strong return on the facilities once they enter operation, so there’s no doubt that investing in these markets is good business.”

However, this does not mean that commercial operations and creating development are mutually exclusive.

“Profitable investments in renewable energy help generate economic growth and sustainable develop-ment,” Andresen points out.

At the same time, there are many challenges when a Norwegian-owned company invests in distant countries, both in terms of distance and culture. It can be demanding to relate to an unstable political situation, and laws and regulations may change before a project is completed. It is also

important to Statkraft to show social responsibility, no matter where in the world the company is.

“In terms of corruption, it is very straight forward: We have zero tole-rance,” says Andresen. “But there is corruption out there and we need to deal with that. Another thing is that in some of SN Power’s projects and in Laos, the HSE standard isn’t quite what we are used to. It’s not easy to implement the HSE standard that we require, but we have proved that it is possible when we put safety at the top of the agenda and work systematically at all levels.”

Standing tallThe head of the international hydro-power ventures also sees a number of social challenges. Going into an underdeveloped society with a major project has an impact on the surroundings – beyond increased local access to electricity and the global climate effect.

“But we need to handle these developments so that we don’t create major negative impact for the local population, and I’m proud to say that we take our responsibility seriously,” says Andresen. “We have a sound value base that enables us to stand tall.”

Andresen will now spearhead in-vestments in the billions in the years ahead. He seems unabashedly calm about the entire affair. Perhaps because he is so certain of success.

“I’m humble in terms of the chal-lenges we face, but we’ve learned a lot from our own experience, and we have the right position in markets with potential,” he says.

“I feel confident that we have the best possible starting point and are well-equipped to become the best hydropower developer in the world. That has to be our goal.”

25people & power


albanian tenderS draw near after several years of pre-paration, the tender process for the devoll hydropower project in southern albania is drawing near. the three power plants will increase the country’s energy pro-duction by 20 per cent.

the goal is to send out the tender invitations by 1 July, and to start construction in the summer of 2012. Construction time for the first power plant is estimated to be three years.

“the impact study is ready, and is now being distributed to the inhabi-tants of the valley and other affected parties for comments,” says COO Bredo Erichsen. “At the same time, we have applied for approval of a design change on the project.”

the development in the Devoll valley is planned with three dams and three power plants, with a combined installed capacity of 272 MW. This is slightly less than originally planned, as a result of optimising technical and environmental aspects. The use of tun-nels has also been reduced to lessen the geological risk. Still, annual energy production is estimated to be 789 GWh, representing a 20 per cent in-crease in Albania’s energy production. The energy will be welcomed in this country, as it is desperate for more clean energy in order to develop further.

In conjunction with the tender process, environmental, social and relocation plans for the project will be prepared. The greatest chal-lenges now are in relation to geology and access to land.

“as I’ve said, the geology is a chal-lenge,” says Erichsen. “Albanian geology is quite different from what we are familiar with from Norway, so although we make careful studies of the ground, there’s always a risk. Access to land is another challenge. We are therefore working hard to iden-tify ownership and plan expropriation, as well as possible relocation of inha-bitants. The process will be carried out by the Albanian government, but we will monitor the process closely to en-sure that it satisfies our requirements.”

the Devoll project is carried out in partnership with Austria’s EVN, through the joint venture Devoll Hydro Power (DHP). The company’s head offices are in Tirana, but there is also a branch of-fice and information centre in the town of Gramsh in the Devoll valley.

i feel confident that we have the best possible

starting point and are well-equipped to become the best hydropower developer in the world. exeCutive viCe preSident ØiStein andreSen

statkraft26

as early as 2014, Statkraft and Sn power will generate 13,000 gwh annually – outside of northern europe. Here is the global view.text birger baug

pure energy on tHe map

ChIle Two hydropower plants and one wind farm

Installed capacity: 359 MW

annual production: 1,542 GWh

partners: Hidroeléctrica La Higuera

S.A. (SNP 50%)Norwind S.A. (SNP 80%).

The figures include the run-of-river

hydropower plant La Confluencia,

which will come online in 2011.

PeruNine hydropower plants



partners: Fully owned by SN Power

Peru The figures include Cheves,

which will be completed in 2014.

BrazIl

OfficeSN Power

Costa rICa

Office SN Power

feature

13,000gwh

annually

27people & power


the PhIlIPPInesThree hydropower plants



partners: SN Aboitiz Power (SNP 50%)

Two of the hydropower

plants are being expanded/

rehabilitated

InDIaTwo hydropower plants



partners: Malana Power Company

(SNP 49%). SN Power and Tata

Power have agreed to explore joint

hydropower opportunities.

srI lanka Two hydropower plants


annual production: 27 GWh

partners: Nividhu Pvt. Lt (SNP 30%)

alBanIaThree hydropower plants

Installed capacity: 272 MWannual production: 789 GWh

partners: Austria’s EVN and

Statkraft own 50% each.

The project is under

development.

turkeyThree hydropower plants



Partners: Fully owned by

Statkraft.

Of these, one is under construction

and one is being planned.

laos Two hydropower plants



partners: Theun-Hinboun

Power Company (Statkraft 20%).

Currently under expansion.

oslo

Head office, Statkraft and SN Power

sIngaPore

OfficeSN Power

nePalOne hydro power plant


annual production: 350 GWh

partners: Himal Power Limited (SNP 57.1%)

SN Power and Tata Power

have agreed to explore joint

hydropower opportunities.

VIetnam

OfficeSN Power

28 statkraft

the darkness comes early to Nepal’s Ramechhap district. The sun disappears behind the high mountains mid- afternoon. At six, it

is already dark, but in the small village of Devitar, the lights are on. Kiosks and tailors are open. Outside, good-natured villagers chat and have a cup of hot tea in the cold.

When people finally start making their way back to their homes, nine-year-old Anil Giri follows her little sister Situ safely home under the streetlights. Devitar is enjoying the benefits of the village electrification project, which was implemented in connection with the construction of Khimti I, and now supplies 4,800 area households with electricity.“We have electric light at home a

few hours every night,” says Anil’s father Pawan. “It’s a huge dif-ference. It makes it easier to meet neighbours and friends after it’s

dark. After the power plant opened, we’ve gotten a new school, a health centre and many new jobs.”

Large parts of the farming are still done the traditional way. The rice is harvested by hand. Drying, cleaning and threshing are still done manu-ally. But the electric mill is new.“When the rice is ready to be milled,

we don’t have to carry it for more than an hour. Before, we used to spend an entire day to reach the mill, and many had to spend the night.”

"State-of-the-art"Last November marked the tenth an-niversary of the opening of Khimti I.

On 27 November, former and cur-rent Statkraft employees, SN Power, Himal Power Ltd, the Norwegian embassy and Nepalese government representatives gathered for the official celebration of the tenth anniversary. Khimti I is now Nepal’s most reliable energy producer.“The success of Khimti shows

the ambitions back then, and

ten years have passed since Statkraft opened its nepalese power plant. Khimti has been a success – for Statkraft, for nepal and for the small population in devitar village.text og PHoto alf berg

a new dawn in

devitar

feature

29people & power


When people start going home, nine-year-old Anil Giri follows her little sister Situ safely home under the streetlights.

30 statkraft

feature

that investments were made in state-of-the-art equipment,” said Statkraft executive vice presi-dent Stein Dale, during the celebration. “This is primarily the result of the unique staff that wor-ked here during the entire process. The success is also connected to our philosophy on corporate social responsibility. Securing the welfare of the people in the area has been important.” A Nepalese pioneerDahle used the opportunity to also thank Odd Hoftun, the true initiator of Khimti I. A Norwegian citizen, Hoftun started the Butwal Power Company after arriving in Nepal as a missionary in 1958. Trained as an engineer, he quickly saw the country’s vast hydropower potential, and the significance of energy supply in developing cottage industries.

Hoftun constructed his first power plant, with a capacity of 50 kW, based on obsolete Norwegian equipment and supported by NORAD. After four smaller hydropower developments based on the same model, a total of 1 MW had been developed. When the Nepalese authorities wanted to develop the far larger 60 MW Khimti power plant in the early 1990s, they contacted Hoftun and his Butwal Power Company. However, the project was far too large for the company alone to handle. Statkraft became the largest owner in 1993, and led the further engin-eering and development work, through the project venture Himal Power Ltd. Construction started in 1996, and in 2000, the facility was completed.

Peter Harwood was the director of Himal Power Ltd. from 1994, and he revealed that they encountered some rather unusual challenges.“I think this was Nepal’s first power plant far from

any trafficable road,” he says. “In the beginning, the final 20 kilometres had to be made on foot along a narrow mountain path. I remember well when four men carried a 400-kilo fan to the construction site.”

A road was never constructed to the intake, so all the equipment and heavy machinery was airlif-ted in by helicopter. Sand and cement was carried in by local porters. Several thousand porters were employed at the peak of operations.“I never saw anyone falter. That’s how people

were. During the construction, I met some of the most disciplined and hard-working people I’ve ever met in my entire life.”

Seeing the Khimti plant a decade after he left it was an emotional experience for Harwood.“The power plant was to be operated under the

same standards as any power plant in Norway. To return now and to see it operating at an even higher standard than back then is akin to having a dream come true.”

Bright futureNepal has a vast potential for hydropower. It is only through increased power production that Nepal’s industries can grow. A visit to Khimti is primarily a reminder of how important energy is in our daily lives.“It’s a completely different life,” says Subha Giri

as she gently rocks her youngest son asleep. “It used to be that the day was over when it got dark. The days are longer now, we can do things in the evening. The children can play outside. It’s easier to take care of the little ones and the cows, it’s easier to get the cows in, it’s easier to cook. This is a better life.”

securing the welfare of

the people in the area has been important. StatKraft exeCutive viCe preSident Stein daHle

There were plenty of happy children during the 10-year anniversary.

Odd Hoftun and Peter Harwood were two key people during the construction of Khimti I.

Stein Dale during his speech.

31people & power


rRepresentatives from both the authorities and NGOs have had a very useful study trip to the Theun Hinboun hydropower project in Laos.

WWF, the Norwegian Rain Forest Fund, the Norwegian Church Aid, the Associa-tion for International Water Studies (FIVAS), The Norwegian Forum for Environment and Development (ForUM), NORAD and Statkraft’s owner, the Norwegian Ministry for Trade and Industry took part in the trip.

“This is the first time we’ve organised a study trip for such a diverse group, and it has been both educational and exciting,” says Olav Hypher, head of Corporate Social Responsibility and HSE in Statkraft. “Our hydropower projects often create controversy due to the impact on environment and local communities. This is why it is so important to listen to other voices and at the same time create a better understanding of what we do ourselves. This trip has helped create a better basis for further discussions.”

seParate manual. The background for the trip is the Energy and Development project, spear-headed by Energy Norway.

“The starting point is to see what it really means to invest in major hydropower projects in developing countries,” says Hypher. “It is often difficult to understand the connection between principles and practice when you sit in a board-room in Oslo. By participating in this project, Statkraft and SN Power demonstrate a will to share experiences and discuss difficult issues with our most important stakeholders.”

The project has organised industry seminars, held in-depth discussions, and developed a man-ual on international standards for hydropower developments.

One of the participants on the trip was Andrew Preston, general manager of FIVAS, who has followed Theun Hinboun since the start.

“It was a fascinating trip, and the group had very good dynamics,” says Preston. “A trip like this provides a good foundation for a sound flow in the

further discussion. We had an opening seminar in the capital, Vientiane, on the first day, and three days at the power plant and the new dam that is being constructed upstream. The measures in the new villages, with new houses, access to elec-tricity, water and so forth, looked very positive.”

FIVAS has previously questioned whether the measures will improve the local population’s standard of living in the long term. “There’s a lot that seems good,” says Preston. “But it is decisive that these measures work over time. Housing and electricity are all well and good, but they do no good if those who live there struggle to get food on the table in a few years. The experts there also focused a lot on this.”

FIVAS will continue to follow the project. “We will do what we can to make this project as good as possible,” Preston concludes.

Very PleaseD. Elin Enge, general manager of ForUM, is very pleased with what she saw in Laos.

“Our expectations of how a Norwegian state-owned company should conduct itself internat-ionally were very much met,” says Enge. “The fact that so much of the investment costs are allocated to social projects is very good. If Stat-kraft is able to keep its promises when it comes to so-called long-term livelihood security, this quality stamp will be further strengthened.”

Enge hopes this standard will be followed in other projects as well. “This way they can be a leading star for other players,” she says.

“A different world”

ola Brekke headed the development at Khimti. He quickly understood that wor-king in nepal would be quite different from any norwegian project.

“they wanted as many people as possible wor-king on the development, and preferred seeing a hundred men than one bulldozer,” says Brekke.

“Seeing two men per shovel was new to us, but we were impressed by the efficiency and logistics. The ‘ambulance,’ for instance, was a bamboo bas-ket with the patient inside, and porters worked in shifts getting the injured to the nearest car road, usually several kilometres away.” Brekke adds that eventually almost the entire local population was employed by the project.

Contrary to fears, the annual floods in the River Khimti have not damaged the intake structures. Brekke is also pleased that the slurry basin has worked as planned this entire time.

“this has resulted in lower maintenance costs than we originally thought,” he says.

the khimti power plant was also completed on time and within budget, and has produced more energy than estimated by the authorities.

“the social and environmental efforts by the owners are also impressive. Schools, health stations and small hospitals have been built and are still running. The small-scale power plant that supplied the power for the construction has been taken over by the local community and business is booming,” Brekke concludes.

learning lotS in laoS

“A trip like this provides a good foun-dation for a sound flow in the further discussion,” says Andrew Preston (right), pictured here with Olav Hypher.

Theun Hinboun:

nordic Hydropower, owned by Statkraft, owns 20 per cent, while the laotian govern-ment and a thai company own the remainder.

it is a run-of-river hydropower plant, and is now expanded with a new power plant and a large reservoir to secure stable energy production.

Several villages must be relocated, but the families receive new housing, electricity, health services, schools and roads. vegetable gardens and fields will ensure increased revenue.

The children make good use of the play apparatus, as here in the power plant workers’ quarter.

Mama Giri with her youngest daughter, Subha.

text SiSSel fantoft PHoto StatKraft

32 statkraft

if you go to the San Isidro district in Lima, Peru, you will eventually come across a company that holds part of the city’s and nation’s future. However, not many Peruvians know this.

“SN Power is well known and respected amongst companies and employees in the mining and energy industry,” says Mirna Sánchez, head of communications in SN Power Peru. “But I think very few ordinary Peruvians are aware of us. We are about to change this.”

Massive plantThe reason is called Cheves. When completed in 2014, this run-of-river power plant will be amongst the largest of SN Power’s 21 power plants across the globe. Measured in installed capacity, the 168-MW plant will be third largest, and the second largest in terms of average annual production, boasting a whopping 837 GWh.

“We are about to implement an external communi-cations strategy for the Cheves project now, focusing on media coverage, too,” Sánchez says.The administration of the Cheves project is located a few minutes' walk away. In the beginning, most of those involved were at the office, but now that the foundation work has started, many are in Churin, where the plant is located.

Warm and friendly placeThe main administration has a central location in Lima’s business area. The offices are bright and the windows provide an intimacy with the

outside world. The office workspaces are located near the windows, with open landscapes and workstations in between to facilitate teamwork.

“I am very satisfied with our offices, as the office infrastructure and services are very good,” says Edson Hidalgo, contracts administrator chief. “Although a lot of people pass by my desk, the people who work here make it a very nice place. And, besides, if I need to concentrate or discuss details with my partners, I can use one of the meeting rooms."

His colleague Rubén Ysa agrees. "I am more than happy to be working in the SN Power Peru office,” he says. “The friendly relations among colleagues and managers, the office being well equipped and the nice settings make us very comfortable and allow us to focus in our day-today activities."

Only Peruvians work at the head office, but at the Cheves offices, there is one Colombian and a number of Norwegians.

“There’s no formal dress code here, so people wear what they feel comfortable with and in accordance to the situations,” says Mirna Sánchez.

“But naturally, there are many engineers here, and they are a little bit formal.”

A normal workday is from 08.00 to 18.30, except on Summer Fridays, when everyone leaves at 14.00. Once a month, there is a popular special arrangement. The staff has a big celebration for everyone who had a birthday during the previous month. There’s cake, birth-day presents, and great fun.

.Proud of ChevesLima is ever expanding, and now has eight million inhabitants. The weather is stable, not too hot, and usually varies between 12 and 24 degrees through-out the year. Lima’s location in the tropics, between the sea and a desert, offers a unique micro- climate. There is no rain, but the humidity is high.

The staff enjoys both the city and the climate. But for the foreseeable future, a lot of them will primarily focus on the Cheves project. EIA and permitting manager Ronald Breña points out that he and his colleagues will work very hard to get the power plant completed on time and within budget.

"Cheves is a relevant milestone, and the first one owned entirely by SN Power Peru,” says Breña.

“Several years of studies and investigations guarantee the technical feasibility; likewise, four years of coordinated work with the local communities allow us to guarantee the social stabi-lity. Thanks to these achievements, the project will be done. We are very proud of this.”

Sn power in peru is about to become a lot more well-known among ordinary peruvians.By birger baug

viva lima

the oFFICe

Fact

Sn power has 232 employees.

the office manages a total of nine run-of-river power plants of various sizes, of which the largest, Cheves, is under construction

when Cheves is completed, the power plants will have a total installed capacity of 438 mw, and an average annual production of 2,411 gwh

The view from SN Power’s offices on Victor Andrés Belunda Street, one of the most important in the San Isidiro district.

33people & power

sn Power Peru

cheves is a relevant milestone, and the first one owned entirely by sn Power Peru. thanks to these achievements, the project will be done.

we are very proud of this. ronald breña

From left: Fabiola Vera, Sandra Zamudio, Carlos Rengifo and Jessica Palacios.

From left: Giuliana Bustes, Walter Zamora, Hugo Inga and Ana Arroyo.

From left: Rune Mordal, Ronald Breña, Arturo Ledesma and Kjetil Nevstad (who is a member of the Cheves team).

A smashing party was held in November during the annual company sports day. All SN Power employees in Peru got together for the event.

34 statkraft

teChnology anD the enVIronment

tHe

Salmon are

leaping

PH

ot

o d

ag

Spa

nt

District heating plant ready in the autumnthe DIstrICt heatIng Plant In Hjellholmen, Harstad will comprise a storage facility for wood chips, the heat plant itself and a 40-metre chimney.

The contractor has already started digging, and will first put up filter barriers to prevent seepage from the old landfill. The goal is for the plant to be ready to deliver heating at the end of September/beginning of October. The plant com-prises two buildings, a wood chip silo and the heating plant with furnaces, and will be run by three or four employees. “In total, facilitating district heating in Harstad will cost around NOK 200 million,” says Bjørnar Olsen, Region North. “The plant and workers in Hjellholmen are estimated to cost around NOK 40 million.”

Power and salmon go Hand in HandStatkraft praised after best fishing in one of the regulated rivers in many years.

This is what the new centre will look like.

Statkraft’s salmon manage-ment has paid off, both in Alta and here in Rossåa.

35people & power

Wind energy passes final hurdle

17 472 In 2010, NOK 17 472 million of Statkraft’s value creation was

returned to the Norwegian public through wages, loan interest, dividends to the owner and state and local taxes.

Common certificates market in 2012norway anD sweDen are one step closer to a common certificates market in 2012. The clarifica-tion came as Norway’s Minister of Petroleum and Energy, Terje Riis-Johansen, and Sweden’s Minister for Enterprise and Energy, Maud Olofsson, recently signed a protocol resolving many of the issues in connection with the implementation of a common certificates market. The goal is to contribute to the development of 26.4 TWh of new energy generation in Norway and Sweden between 2012 and 2020.

Green certificates are a market-based system to stimulate investment in new renewable energy generation. New production plants are issued certificates for each MWh they generate. These certif-icates can then be traded in a market where consumers are obligated to purchase certificates for a certain percentage of their power consumption. The system ensures revenue for companies develop-ing renewable energy from both the price of electricity as well as the certificates trade, and together this will make new, renewable energy projects profitable. An important consequence of such a system is that new capacity is built where it is cheapest, for the benefit of developers and consumers alike.

Both senior researcher Tor Næsje from the Norwegian Institute for Nature Research (NINA), and en-vironmental protection manager Jon Håvar Haukeland from Alta municipality see the river as a

good example of how salmon and power go hand in hand. The controversial power plant in Alta was completed in 1987. Local anglers saw an almost immediate negative impact on the river’s salmon population, but it took many years before Statkraft, as the water flow regu-lator, realised this, reports Teknisk Ukeblad.“But then Statkraft accepted that its pre-

sence was a challenge to the river, and began to take the environment into consideration,” Haukeland says.

From then on, conditions improved for sal-mon and trout in Alta. Statkraft and Statnett made improvements at all levels to reduce the number of interruptions that caused parts of the river to dry up.“Cooperating with and having a water flow

regulator willing to listen to our advice has been essential,” says Næsje. “Statkraft funded a doctorate to find out why salmon fry in the Alta River died during the winter. They have been very forthcoming and willing to lis-ten to optimise the situation for the salmon.”

That willingness is producing results. “All in all, we can say that the river, in general, is as good as it was, if not better, than before development started,” says Næsje. “This shows that there are great benefits in cooperating between special- ist environments and water flow regulators, and that you can share goals and motivation.”

The measures implemented in Alta have now started to yield returns: there was big salmon fishing in 2007, and 2008 was the best in years.

Statkraft has 11 fish hatcheries with 24 em-ployees working directly with fish production. In addition, there are around 10 positions related to waterway environments, and significant in-vestments have been made in connection with waterway monitoring and measures. Statkraft also operates two of Norway’s gene banks.

two sweDIsh wind power licenses have finally entered into effect. Stamåsen (115 MW) and Raftsjöhöjden (25 MW) are the first two projects in Statkraft SCA Vind AB’s portfolio to receive this status. The license applications were submitted to Swedish authorities two years ago.

“We are very pleased to have the first two licenses in place, so we can start on the detailed engineering,” says Bengt Venmark, manager of project develop-ment, Wind Onshore (WL). “However, we would like to make a general assess-ment of the portfolio before making a decision regarding progress plans. For this reason, it’s too early to say anything

about the development of these before we have more legally valid licenses.”

A total of six license applications were submitted at the same time by Statkraft SCA Vind AB, and the docu-ments weighed in at 15 kilos. Decisions regarding the other license applicati-ons are expected in 2011 and 2012. Statkraft owns 60 per cent of Statkraft SCA Vind AB, while the remainder is held by SCA, Europe’s largest private forest owner. Statkraft recently opened its first Swedish wind farm, the Em wind farm (9.2 MW) outside Mönsterås in southern Sweden.

Bengt Vernmark, head of project development, Wind Onshore

Maud Olofsson and Terje Riis-Johansen

(right) join forces.

36 statkraft

starting this year, Statkraft will increase its focus on challenges in connection with engineering and construction phases of invest-ments. The current key perfor-mance indicators for health and

safety (HS) will be replaced with one indicator for operations and one for projects. Fatal accidents are also introduced as a separate indicator.

Statkraft is becoming an increasingly inter-national player with projects spanning the globe, which makes HS work demanding. These changes will provide Statkraft with an improved governing basis for health and safety, as well as reflect the company’s challenges.

ImProVeD BasIs. “In recent years, we’ve made an active effort to integrate HS as an important and natural part of all phases in our projects, including engineering,” says health and safety manager Claudia Hauge. “I’m confident that our focus on HS will lead to more efficient use of our resources, at the same time as it helps us work systematically to reduce injuries and accidents.”

This focus will also bring changes to the report requirements. For instance, “number of injuries” will replace the current “lost time injuries.” These changes will provide an improved governing basis for health and safety, as well as include more types of incidents. The statistical data will therefore be more difficult to manipulate.

“The changes will give us a better overall picture, and as a result, a better decision-making basis,” says Hauge. “I hope that, in the long

term, HS will be integrated into all of Statkraft’s processes, from procurement to project exe-cution processes. HS must be a part of project planning and execution, and not come in at a late stage of the project execution.”

thanks, oFFshore! Statkraft’s operations have a strong and sound HSE culture, which will now be implemented in other parts of the Group. Hauge believes that the increased focus on HS in part can be attributed to the many former offshore workers that are employed in Statkraft and SN Power.

“This industry has long been one of the key international innovators within HSE, and I’m grate-ful for what these employees have brought to Statkraft,” she says. “Innovation is at the core of everything we do, and this expertise contributes to strengthen the company’s position.”

emenDo Is useFul. “It is important that all employees learn from each other’s experiences across the Group in order to be successful within HSE,” Hauge says. She points to Emendo as a useful tool. All non-conformities, incidents and improvement items are reported and followed up in the database.

“Emendo is a fairly new tool, which provides each employee with a unique opportunity to learn from analyses and reports on all inci-dents,” Hauge explains. “The term ‘learning from the mistakes of others’ can most definitely be used for Emendo, and I hope people see the value of using the system.”

Statkraft’s growing international activities make health, safety and environment (HSe) work increasingly demanding. focus is now on reporting and key performance indicators.TexT Cato gjertSen PHoto ellen joHanne jarli

Safety around tHe world

hse

HSE increasingly important internationallyas statkraFt anD sn Power become more international, the HSE requirements are also be-coming increasingly stricter.

For instance, Statkraft has a significant pres-ence in Turkey with three different hydropower projects. One is in the engineering phase (Cetin), one is being constructed (Kargi) and one is in the operations phase (Cakit). For all these projects, health and safety will be a vital part of the quality that Statkraft requires from the projects.

great emPhasIs on hs. “The construction period is the period with the highest risk,” says HS advisor Mads Magnussen. “It is therefore important that we not only make strict demands on the final pro-duct, but also to the construction work. We achieve this by using the best contractors who are familiar with international requirements, and who have deli-vered according to these in the past. There was great emphasis on HS when we qualified the contractors.”

At the same time, he stresses the necessity of being a visible builder. This means being clear as to Statkraft’s HS requirements, and keeping a close watch to ensure that the requirements are met in all phases of construction.

“We were well-prepared when we entered Turkey, and have focused on maintaining acquired knowledge from previous projects,” says Magnussen. “It is also important that the transfer of experience continues to be a central part of our work. Only then can we reach the goals we have set.”

gooD exPerIenCes. For its part, in 2008, SN Po-wer started to develop a system of tools for planning and executing projects efficiently and transparently. These tools contribute to a more systematic ap-proach to handling costs and time, but factors such as HSE and Corporate Social Responsibility are also important. Urban Kjellén, executive vice president for HSE, says the tools have been used on the SN Power projects Ambuklao and Cheves, in the Philippines and Peru respectively.

“In Cheves, we started late last year, says Kjel-lén. “We had then gained some useful experiences from Ambuklao and other projects, so the process was even more streamlined. The tools enable us to make more active use of acquired knowledge when assessing HSE challenges at the early stage of the projects. Simultaneously, we have developed guide-lines for our managers at facilities in operation. HSE has definitely become a more integrated part of our business model.”

Inspecting the pipe distribution chamber at the Mår power plant in Telemark County, from left: Claudia Hauge, maintenance planner Per Jonassen and site manager Arnt Ivar Hvammen.

rePorting

37people & power

statkraft’s operations have a strong and sound

Hse culture, which will now be implemented in other parts of the group. HealtH and Safety manager Claudia Hauge

“Statkraft’s operations have a strong and sound HSE culture, which will now be implemented in other parts of the Group,” says health and safety manager Claudia Hauge. She is pleased with what she and colleague Mads Magnussen (left) see during the rehabilitation of the Mår power plant, represented here by Statkraft’s project manager, Jon Aarbakk (right) and site manager for Skanska, Jan Roar Teigen.

statkraft38

hr

it’s no coincidence that Hr advisor ellen etholm spends so much time at school.text Cato gjertSen PHoto eriK tHallaug

Ellen Etholm doing her part telling students what makes Statkraft an attractive employer, but is completely dependent on contributions from employees in the various units.

looking for future colleagues

people & power 39

emPloyer Branding

since 2001, Statkraft has been goal-oriented in its employer branding work. As a result, the company is now estab-

lished as one of the most attractive employers amongst Norwegian stu-dents. How the students encounter Statkraft, both through marketing and meetings with employees, is the key to these good results.

Employer branding is a term descri-bing the activities a company carries out to communicate what makes the company an attractive place to work – for both current and future employ-ees. Employer branding is not the same as recruitment, but a strong and attractive employer brand is an important condition for recruiting the necessary people to ensure future growth and profitability.

lower Costs. HR advisor Ellen Etholm is in charge of employer bran-ding as well as Statkraft’s trainee pro-gramme. She says that a good and attractive employer brand provides the company with an efficient tool to attract the very best talent.

“This is becoming increasingly important in the Norwegian labour market, where there is little unem-ployment and more candidates

leaving the market than entering,” says Etholm. “If we have a strong employer brand in the markets where we have recruitment needs, there’s also a higher probability that the candidates themselves find the company. This, in turn, means that the need for expensive ads and re-cruitment agencies can be lowered.”

A robust employer brand will hope-fully also contribute to creating pride and loyalty among the company’s employees. This then lessens the risk of a high employee turnover, which again generates high costs.

“When a company is looking to reduce its recruitment costs, and have good employee satisfaction and resulting low turnover, as well as access to the necessary expertise, it pays off to invest in well-grounded employer branding work,” she says.

ImPortant eFFort. Every year, Statkraft organises many different events at Norwegian colleges and universities. This includes partici-pating in career days and company presentations, excursions to Stat-kraft facilities, carrying out trainee programmes and summer projects, as well as targeted sponsoring and advertisements.

The main target group for employer

branding is college and university students, as well as candidates for technician positions. It is also impor-tant to keep in mind that candidates with some years of experience say that on-campus activities were among the most important sources of information when selecting their employer number two, three or four. The effort made at places of study is in other words not only important in order to recruit recent graduates, but also to recruit more experienced candidates.

The hardened competition for the best candidates has made it more important than ever that the busi-ness units contribute by visiting col-leges and universities, and to take in students as summer interns.

“Students and other candidates want to talk with people with the same background as them, and who are in positions they want to work in at Statkraft,” says Etholm. “The employees in the units are the ones who know their field and business area the best, and we are therefore completely dependent on contributions from various units in Statkraft in this work. In return, the units will have a large pool of candidates to select from when they have vacancies.”

The giant leap to the top

statkraFt’s rePutatIon as an employer is measured in two important annual surveys among 100 attractive employers in Norway. The surveys, conducted by Universum, a world leader in employer branding, target students and candidates who already are employed. Statkraft first participated in the student survey in 2001. The students evaluate the company’s attractiveness as an employer within technology and finance.The company also has a strong position among people who are employed in 2010, placing number nine in technology and number 14 in finance.

when a company is looking to reduce its recruitment costs, and have good employee satisfaction as well as access to

the necessary expertise, it pays off to invest in well-grounded employer branding work. Hr adviSor ellen etHolm

Placement technology finance

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“StrategiCally important worK”

President and ceo christian rynning-tønnesen also believes that employer branding is important, and asks the business units to emphasise this even more:

“Statkraft as a company is growing. We have an ambitious strategy and our investment platform has now been clari-fied. We’re no longer as limited by capital, but we are limited in terms of competence. We now face challenges in terms of securing adequate high-tech expertise, both in the short and long term. In order to secure future profitability and growth, Statkraft depends on access to the correct competence. Employer branding is therefore strategically important and the corporate management wants Statkraft’s business units to prioritise their contributions to this work.”

Ceo:

in order to

secure future profitability, statkraft depends on access to the correct competence. preSident and Ceo CHriStian rynning-tØnneSen

the hIstory

turns

130,000tonnes of

waste into

electricity

tHe land of ContraStthe Farmer in the photo illustrates the contrast between a rustic way of life and modern technology in the German city of Landesbergen. The farmer still uses a horse-drawn plough to turn the soil, while Germany’s first major power plant fuelled by natural gas can be seen in the background.The first two blocks came on line in 1962, but are no longer operational. Two more blocks came on line in 1967 and 1973. Now, only combi-block IV, which was the last to be built and has both gas and steam turbines, is still running.In its heyday, more than 300 people worked at the Robert Frank power plant. Today, about 70 employees make sure the wheels keep on turning in block IV and the bio-fuel power plant that came on line in 2003. The bio-fuel power plant uses 130,000 tonnes of waste wood for energy production annually.The power plants are of great significance to Landesber-gen. As a sign of gratitude and its attachment to the power plant, the municipality has adopted a symbol of electricity in its coat of arms.

hse to the world - statkraft · statkraft is one of the companies that could play an important role...

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