Press release dated 14 February 2014

The Norwegian Water Resources and Energy Directorate (NVE) has recommended issuing a licence for the development of Sauland Power Plant. Chair of the board Finn Werner Bekken of Sauland kraftverk AS is grateful that the recommendation is finally in place, but is also very concerned about the conditions proposed by the NVE.

Stringent conditions
'We acknowledge that the conditions we have been offered are significantly more stringent than expected. If these are final, it will make the process very challenging for us.

The main consequence is that there will be less water for power production. This will give less revenue without reducing the costs correspondingly, making it very demanding to carry out the project.’

Not a final decision
Bekken stresses that this is not a final decision concerning the permission to develop Sauland Power Plant.

'The case is now with the Ministry of Petroleum and Energy. We will spend this time taking a more detailed look at the recommendation documents. We will present arguments to the Ministry for giving us conditions that will ensure that the power plant becomes a reality,' says Bekken.

Must reach green electricity certificate deadline
Regardless of the outcome of the licencing process, it will be a challenge to have the power plant completed by 2020, which is the deadline for receiving green electricity certificates.

‘We need three and a half years to prepare and develop the power plant following an investment decision, which at the earliest can be made in 2016. This means that the power plant can be completed in the course of 2019.

Green electricity certificates are important for the profitability of the power plant. This gives a narrow time margin if the project is delayed.'

Important to reach national target
Sauland Power Plant will be an important contributor to increasing the proportion of renewable energy, so that Norway can fulfil its international climate obligations. The goal for 2020, is that Norway and Sweden together increase their power production based on renewable resources by 26.4 TWh.

The owner company Sauland kraftverk AS is owned by Skagerak Kraft (67%), Notodden Energi (16.2%), Hjartdal municipality (14.35%) and local landowners (2.45%).



For more information, contact

Chair of the board Finn Werner Bekken, telephone: (+47) 977 41 800