© Vattenfall AB

Vattenfalls investment in ocean energy and the Maren project at Runde islandThe conference "Berekraftig energiframtid“, February 10-11th 2009, Kristiansund, Norway

José SilvaKristin AndersenVattenfall AB

jose.silva@vattenfall.comkristin andersen@vattenfall.com

© Vattenfall AB 2

Disposition

• Vattenfall and wave power– Short presentation of Vattenfall– Main reasons for Vattenfall to invest in ocean energy– Vattenfall’s vision, strategies and role within ocean energy – Why investment in Norway?

• The Maren project at Runde island– Partnership– Purpose– Description– The location– Environmental monitoring– The consent application

© Vattenfall AB 3

13

Employees (thousands)

TWh Custo-mers

83 2.2m0.5

EBIT€ bn TWh Custo-

mersEmployees (thousands)

EBIT€ bn

32168 5.7m3.0

2000 2007 2009

Vattenfall - Significant growth in recent years

© Vattenfall AB 4

Climate target: 50% reduction of CO2 emissions by 2030

0 %

20 %

50 %

90 %

1990 2010 2030 2050

Vattenfall’s targetReduce emissions by 50% from 1990 to 2030

- Technic?- Politics?- Economy?

Year 0 for EEC and Kyoto

EUs target. Reduce emissions by 20% from 1990 to 2020.

© Vattenfall AB 5

The way towards a sustainable energy system

Presentsystem

Bridgingsystem

Futuresystem

© Vattenfall AB 6

Wave and tidal power potential in Europe

Vattenfalls core markets

Energetic wave climate

Moderate wave climate

UK 840 TWh

Ireland 525 TWh

Norway 500 TWh

Portugal 80 TWh

Denmark 30 TWh

Sweden 30 TWh

Germany 5 TWh

Runde

Wave Power in Europe• Theoretical potential: 2 000 TWh/a• Practical potential 6%: 120 TWh/a• Vattenfalls vision: 30 TWh/a

Tidal Energy in Europe

• Theoretical potential: 100 TWh/a• Practical potential 10%: 10 TWh/a• Vattenfalls vision: 1,5 TWh/a

© Vattenfall AB 7

2010 2011 2012 2014 2016 2018 2019 2020 20212009 2022

• Two pilot tests• Establish sites• Increase know-how

• Two Demonstrations• Site Development• Best Technology

Commercial wave farms

On markets with the best commercial conditions

100-200 MW

100-200 MW

Vattenfall - Proof of concept 10-20 MW per plant

Making use of national market support schemes

21

Formulation of a Strategy & Vision

Runde (N)

Lysekil (S)

Póvoa de Varzim (P)

Galway (IRL)

Wavebob

Seabased

Technology / technologies proved to gain best economical result

From R&D to Business

© Vattenfall AB 8

Vattenfalls cooperation activities and test sites

Vattenfalls core markets

Energetic wave climate

Moderate wave climate

Seabased

Pelamis

Wave Bob

UK 840 TWh

Ireland 525 TWh

Norway 500 TWh

Portugal 80 TWh

Denmark 30 TWh

Sweden 30 TWh

Germany 5 TWh

Runde

© Vattenfall AB 9

0

5

10

15

20

25

30

0 250 500 750 1000 1250 1500 1750 2000 2250

2010 2011 2012 2014 2016 2018 2019 2020 20212009 2022

Learning Curve & Expected investment cost

MW

€ct/kWh

Carbon Trust 2006, 10-15 % learning rate

Learning Curve – Wave Power *

Ireland 22 €ct/kWh (500 MW)

*

UK 25 €ct/kWh (25+75 MW) New systemFeed in tariff (15 years)

© Vattenfall AB 10

The Maren project

2010 2011 2012 201320092007 2008

Planning and pre-studies Operation and monitoring

2014

DeploymentConsent from NVE

© Vattenfall AB 11

The Seabased concept

©O

skar

Dan

iels

son

© Vattenfall AB 12

System overview – Maren project

AUX

Grid

WEC1

LVM S

WEC2

Y

Rect if ier

Rect if ier

DC/DC Invert er Transformer

Rect if ier Line Conver t er Line

Transformer Line

Auxiliary System

Rect if ier Line

System O verview

© Vattenfall AB 13

Maren project - Organisational chart

Legal and communication services

Environmental monitoringKristin Andersen

Engineering (Test and Evaluation Analyses)Oskar Fängström Danielsson

Operation and maintenanceSvein Vassbotn

Project leaderJosé Silva

Stearing groupElling Dybdal

Ulf Tisell

Internal Resources Vattenfall, Tussa

External Resources Seabased, Runde miljösenter, Other contractors

© Vattenfall AB 14

The location of the test site

Fuglfjell

Aalesund

Bru

MaaganesetGeitmaren

Kabel

Runde

© Vattenfall AB 15

Site identification and permission application

•Investigations around Runde

May 2008

Dec 2008

© Vattenfall AB 16

Environmental monitoring programme and Runde miljösenter

© Vattenfall AB 17

Environmental monitoring programme

Benthic flora and fauna

Eccosounder 200 Khz

Eccosounder 38 Khz

Fish investigations

© Vattenfall AB 18

Noise measurements

Environmental monitoring programme

Birds and marine mammals

© Vattenfall AB 19

The Maren project

2010 2011 2012 201320092007 2008

Planning and pre-studies Operation and monitoring

2014

DeploymentConsent from NVE

© Vattenfall AB 20

© Vattenfall AB

Tusen tack för uppmärksamheten!

Kontakta oss gärna med frågor om projektet:jose.silva@vattenfall.comkristin.andersen@vattenfall.com

www.vattenfall.com

© Vattenfall AB 22

Extra slides

© Vattenfall AB 23

Vattenfalls produktionsmix 2007: 167,6 TWh

Nuclear

Fossil

Hydro

Otherwind, wave, biomass, waste

+ 10 TWh till 201640 miljarder SEK

+ R&

R&D 1,8 miljarder SEK

© Vattenfall AB 24

Islandsbergsprojektet - Uppsala Universitet

•Testanläggning utanför Lysekil–40 bojar–10 generatorer (à 10 kW)– undervattens ställverk–2002 - (2009) - 2014

© Vattenfall AB 25

Vågklimat i Europa

Källa: Accessible wave energy resource atlas, Ireland, 2005

© Vattenfall AB 26

Upwelling rich environment

© Vattenfall AB 27

Wave Energy Conversion Concepts – A Variety of Solutions!

© Vattenfall AB 28

Wave Energy Conversion Concepts – Schematics

Oscillating water column

Overtopping systems

Wave activated bodies

Onshore/Shoreline Offshore

Source: Thorburn, 2004

© Vattenfall AB 29

Let’s make the vision become reality!

The Vattenfall Wave Power Team

© Vattenfall AB 30

What is Ocean Energy?

Marine Current Power

Wave Power

Salinity/Osmotic Power Worldwide ~ 1 600 TWh/year

Europe ~ 200 TWh/year

Worldwide ~1 000 TWh/year

Europe ~ 100 TWh/year

Worldwide ~ 6 000 –15 000 TWh/year

Europe ~ 2 000 TWh/year

POTENTIAL

Sources: World Energy Council, Statkraft

© Vattenfall AB 31

Seabased park (1000 units~15MW) - photomontage

© Vattenfall AB 32