Knowledge-creation supporting energy and climate targets in the Nordics. Hans Jørgen Koch CEO, Nordic Energy Research

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1 Knowledge-creation supporting energy and climate targets in the Nordics Hans Jørgen Koch CEO, Nordic Energy Research

2 What we do We are the platform for cooperative energy research and policy development under the Nordic Council of Ministers the intergovernmental body between Denmark, Finland, Iceland, Norway and Sweden. We fund R&D to promote a sustainable future We contribute to policy-making

3 Budget Nordic Energy Research receives approximately 8 million EUR per year, most of which comes from national governments.

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5 NORDEK Nordek was planned as a Nordic joint market, which would be an alternative to the European Community (now the European Union). The most important element in Nordek was a customs union, but in the draft treaty there were also provisions on joint institutions and cooperation in the field of rural development, industrial production, energy, agriculture and fisheries. Nordek was launched in 1968 by the Danish Prime Minister Hilmar Baunsgaard. In November 1970 a treaty proposal on the organization of the Nordic Council was approved, but shortly after Finland chose to leave cooperation because it had received signals from the Soviet Union that its government was against the Nordic plans. Denmark, Norway and Sweden tried to create Skandek instead, but this attempt also failed. sv.wikipedia.org/wiki/nordek 5

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11 The target is to create the smartest energy systems in the world Jorma Ollila Former CEO of Nokia

12 Recommends Nordic- Baltic cooperation The political ambition and roadmap should both have a clear focus on the involvement of the Baltic countries, which are a transit area for Nordic electricity. Strong interconnection will improve energy security across the whole Region. This Nordic political focus would and should be in line with activities undertaken at BEMIP level. Close Nordic-Baltic electricity market integration will also strengthen the Nordic voice within the EU

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14 Vision The Nordics as a global leader in smart energy Mission Progress through collaboration

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16 Strategic Research Areas

17 Tools for Nordic Collaboration Outreach in the Nordics Exchange of young researchers Meta Studies Nordic-Baltic collaboration Stakeholder co-financing Cross-disciplinary research Closer collaboration

18 Tools for Nordic Collaboration Outreach in the Nordics Exchange of young researchers Meta Studies Nordic-Baltic collaboration Stakeholder co-financing Cross-disciplinary research Closer collaboration

19 Stakeholder co-financing Involvement of stakeholders is key for identifying and responding to strategic priorities for Nordic research cooperation. This involves consultations with National stakeholders regarding joint Nordic actions and co-funding of research.

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23 ANTE Assessment of Nordic Transport Electrification potential 1. Nordic Electric Vehicle Outlook in collaboration with IEA 2. Electrification potential on road, rail, water and in the air 23

24 Planned activity: Tracking Nordic Clean Energy Progress 24

25 BEN Bioenergy in the Nordics and Baltics Aim: present a roadmap for development of biofuels based on the NETP 2016 carbon neutral scenario by 25 Quantifying bioenergy resources. Assessing the potential use of available biomass in various sectors. Indicating costs of biomass for different biofuel use. Evaluating societal value of biofuel in a Nordic-Baltic bioeconomy. Identifying barriers and support needed for biofuel technologies.

26 Wind generates the cheapest new electricity at the right spot Middelgrunden wind farm outside Copenhagen, Denmark

27 Wind power Uruguay, Portugal and Ireland already get 20% of their energy from wind. Denmark gets a whopping 40%. The United States expects to invest $400 billion in offshore wind to More than twice Denmark s total GDP. Wind is more competitive than ever.

28 Technology moves faster than we expect The IEA predicted that a wind energy price of 5 Euro cents per kwh could be achieved by 2040 It was achieved in 2016.

29 Technology moves faster than we expect Financial Times. April The Times (UK) September Source: IEA s World Energy Outlook 2016 Recharge News 01 March 2018

30 Baltic Energy Technology Scenarios

31 BENTE will examine how the Baltic countries can: Achieve their energy- and climate targets Enhance energy security Maintain affordable prices Tools: different scenarios cost effectiveness Started 20th of April To be published in April The study builds on the experiences from Nordic Energy Technology Perspectives

32 Preview of key BENTE findings: GHG reductions should be led by the electricity and district heating sectors, followed by transport, buildings and other sectors. The Baltic countries could achieve the proposed renewable energy targets using domestic resources. Electricity consumption is projected to increase due to growing demands and electrification. The largest increase will come from electric vehicles. Renewable energy is becoming the cheapest option for new electricity generation and European electricity systems will undergo a transformation to very high renewable shares in the coming decades. 32

33 The Baltic- Nordic Energy Research programme Goal: To promote energy research and analysis in the Baltic States and inspire intra-baltic and Baltic-Nordic collaboration. Nordic Energy Research; The Ministry of Economic Affairs and Communications, Estonia; The Ministry of Economics, Latvia; and The Ministry of Energy, Lithuania are discussing the possibility of launching a four year long, /year collaborative energy research programme. This goal will be translated into three central Actions: 1. The promotion of intra-baltic and Baltic- Nordic research projects with participation of Baltic researchers 2. A Baltic- Nordic PhD collaboration 3. Exchange of energy researchers between the Baltic and Nordic countries 33

34 Thank you for your attention! Hans Jørgen Koch, CEO