15 March 2023

Today's Top Nordic Green News:

• EU proposes electricity market design reform 
• Finland's Olkiluoto 3 reactor begins producing electricity again after multiple delays
• Nel Hydrogen receives EUR 34 million contract for 120 MW of electrolysis equipment from German HH2E

EU proposes electricity market design reform

On 14 March 2023, the Commission presented a proposal to revise the rules for electricity market design to make the EU energy market more resilient and independent from short-term market prices of electricity. In summary, the proposal suggests complementing short-term markets with longer-term instruments to facilitate investments in clean technologies, reduce fossil fuel generation and lead to lower prices for consumers during future fossil fuel crises. The proposal is now under debate and negotiation by the Council and the European Parliament. Here are the three objectives of the proposal:

• Firstly, the proposal aims to protect and empower consumers to be more active players in the energy market by providing them with wider choice of contracts and clearer information. This allows consumers to lock in secure, long-term prices or take advantage of price variability, depending on their circumstances. Furthermore, the reform strengthens safeguards for minor consumers. As an example, during emergencies, member states of the European Union will have the authority to intervene and establish retail prices for households and small enterprises. The restriction should be established under the average consumption to encourage the reduction of demand.

• Secondly, the EU proposes measures to enhance the stability and predictability of energy costs, which can contribute to the competitiveness of the economy against volatile prices. This can be done by increasing market access to longer-term contracts and markets that offer protection against price volatility, eg long-term contracts such as power purchase agreements (PPAs). However, the current market for PPAs is limited to large energy consumers in a few member states due to credit risk. To address this, member states should ensure that instruments are available to reduce financial risks. Additionally, the proposal also suggests two-way investment support for new electricity generation projects and aims to create regional reference prices to increase price transparency and ensure competitive markets.

• Thirdly, the EU proposes to triple renewable energy deployment and boost investment in renewable energy through improving long-term contract markets, increasing power system flexibility and enhancing the role of system operators in integrating renewables into the grid. The proposal requires member states to assess their power system flexibility needs and establish objectives to deliver on those needs. It also allows member states to introduce new support schemes for non-fossil flexibility such as demand-side response and storage. System operators will play an enhanced role in integrating renewables into the grid by increasing transparency surrounding the availability of grid connection capacity and bringing trading deadlines closer to real time.

Nordic reaction to the proposal: 

Emma Wiesner, an MEP from the Swedish Center Party, argues against reforming the European electricity market model amid the ongoing gas crisis. She contends that the market is not in crisis but suffering from a lack of gas due to geopolitical actions. She also opposes introducing a price corridor, which would restrict market freedom and increase costs over time. Wiesner calls for developing the electricity market, investing in flexible technologies and large-scale energy storage, and focusing on creating healthy investment opportunities without restricting the market. She emphasises the importance of protecting the free market and individual choice.

EU, Proposal, CEPR, Euractiv, Politico, NyTeknik

Finland's Olkiluoto 3 reactor begins producing electricity again after multiple delays

The third reactor of Industrins Kraft's (TVO) Olkiluoto power plant in Finland started producing electricity again on Wednesday after several delays due to problems with the impellers in the turbine plant's feed pumps and other minor issues. The reactor is expected to produce at full power in the afternoon after a number of tests are completed. Once the reactor is fully operational, it will produce almost a third of Finland's electricity needs. The power plant's performance and production capacity will be tested in the next few weeks before adjustments are made.

HBL

Nel Hydrogen receives EUR 34 million contract for 120 MW of electrolysis equipment from German HH2E

Nel Hydrogen has signed a contract worth EUR 34 million with German renewable energy firm HH2E for the supply of 120 MW of alkaline electrolyser equipment. HH2E plans to build hydrogen projects across Germany, including the HH2E Lubmin in Mecklenburg- Vorpommern, where hydrogen production will start by 2025 and be significantly increased by 2030.

Press Release

Finnish forestry tech firm CollectiveCrunch raises EUR 1.4 million for international expansion and carbon market focus

Finnish AI-based forestry platform CollectiveCrunch has raised EUR 1.4 million in a funding round led by existing Swedish investor Nidoco AB. The funds will be used to expand the company's operations internationally and focus on the forest carbon market. CollectiveCrunch uses AI to provide real-time insights into forest health, biodiversity and carbon capture. The company recently won approval from non-profit Verra to operate in environmental and social markets, including the Verified Carbon Standard Program. The firm's co-founder, Rolf Schmitz, said CollectiveCrunch was "uniquely positioned to support the digital transformation of the forestry industry".

tech.eu

Sources dismiss Swedish solar company Midsummer's declarations of intent as "completely unreasonable" and a "scam"

Swedish solar energy company Midsummer, which manufactures thin-film solar cells of the CIGS type, has been accused of making "completely unreasonable" and "scam" declarations of intent by sources familiar with the company and the solar energy market. Midsummer had claimed to have letters of intent that would amount to billions, but sources have called the company a "castle in the air" and pointed out that its products are significantly more expensive and provide less effect per surface compared to traditional solar panels. Midsummer's communications manager, Peter Karaszi, has dismissed the claims as "pure bullshit".

Di

Arise acquires controlling stake in Finnish land-based wind and solar power company Pohjan Voima

Arise, a Swedish wind power company, has announced the acquisition of a 51% controlling stake in Finnish land-based wind and solar power firm Pohjan Voima. The purchase price of the stake is approximately EUR 12 million with an additional EUR 18 million expected if certain milestones for the projects are met. Pohjan Voima has a project size of 1.7 GW, of which 1 GW relates to wind projects with ongoing permit processes and environmental investigations. The remaining 700 MW refers to wind and solar projects in the early permit phase.

Di

Swedish Solar Power Accelerator increases output target 

Swedish Solar Power Accelerator AB has adjusted its output target from 200 MW to 1000 MW, which aligns with official societal goals to accelerate the pace of solar deployment. The company also elected Bo Normark, Hampus Engellau, and Josephine Kallenberg to its board of directors. The goal is to achieve a critical mass of roof-based solar generation to supply the operation of 250,000 residential households or 400,000 electric cars. The company aims to become a market-leading microproducer of surplus electricity from roof-based solar energy and is in negotiations for roof leases with options for approximately 250,000 square metres.

Press Release

Vestas to supply 81 turbines to three South African wind farms

Danish wind turbine manufacturer Vestas has signed a contract with South African energy firm Red Rocket for the supply and installation of 81 turbines at the Brandvalley, Rietkloof, and Wolf wind farms. The deal includes the first global installation of the V163-4.5 megawatt turbine from Vestas' 4 MW platform. The 15-year service agreement will see delivery and commissioning in 2024. South Africa aims to increase the share of renewable energy from 11% to 41% of total electricity production and achieve an installed wind energy capacity of 17.7 GW by 2030.

Press Release

Denmark plans new wind farms in Baltic Sea, waiting for Swedish approval

Denmark is planning to build two new wind farms, Kattegat II and Kriegers Flak II, with an output of 1,000 MW each and a potential overplanning of up to 2,460 MW for Kattegat II and 3,450 MW for Kriegers Flak II. The wind farms will be located in the Kattegat and Baltic Sea, and the Danish Ministry of Climate, Energy and Public Works has commissioned Energinet to carry out a strategic environmental assessment for the projects. The Swedish Environmental Protection Agency (Sw. Naturvårdsverket) has been notified of the assessment and has until March 29, 2023, to respond. After the assessment, specific environmental assessments for each project will be carried out, followed by a tender procedure and consultation with the public and authorities.

Nordiska Projekt

Copenhagen Infrastructure Partners partners with NorSea and Parkwind for floating offshore wind projects in Norway

Copenhagen Infrastructure Partners (CIP) has partnered with Norwegian supply chain manager NorSea and Belgian green energy company Parkwind to focus on floating offshore wind projects in Norway. The partnership aims to use their experience in renewable energy development, financing and supply to enter Norway's floating offshore wind market. Norway has committed to becoming carbon neutral by 2050 and building 30 GW of offshore wind projects by 2040, with the majority of the country's offshore wind potential found in depths that require floating wind projects. The first tender round in 2023 includes the Utsira Nord area, which has a capacity of 1.5 GW.

Accura

Norwegian Aneo announces first energy investment outside Norway

Norwegian energy company Aneo has announced its first investment in new energy production outside Norway. The company plans to expand its operations into Sweden and become an innovative and safe partner for everyone who wants to contribute to the energy transition in the Nordics. The wind farms planned for Sweden will cover the energy needs of 18,000 homes.

Elmagasinet

What we’re reading

• Why is Cyclone Freddy a record-breaking storm? (Reuters)
• Brussels warns Germany against electricity subsidy for industry (Financial Times)

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