Presentation held at "Norges energidager 2013", an annual event in Oslo, Norway, hosted by The Norwegian Water Resources and Energy Directorate (NVE).

1. TOWARDS THE INTERNAL
ENERGY MARKET IN 2014 – PANEUROPEAN VS. NORDIC
LARGE PRODUCER
PERSPECTIVE
Steinar Bysveen, EVP Statkraft
Energidagene 2013

2. Value of international trade
2

3. An efficient internal energy market in 2014…

EU's stated goal is to have an
efficient internal energy market in
2014, and many initiatives have
been taken
-
3
"Electricity market directive" 1,2 & 3
Market Coupling
Network codes
Establishment of ACER/ENTSO-E
Unbundling of TSOs
Etc.

4. …however some forces work in the other
direction


National renewable subsidy
schemes
Capacity mechanisms
- High RES + flat demand + low CO2
leads to
- A need to decommission existing
thermal plant, but with consequential
worries over security of supply
("Missing money")

National capacity remuneration
mechanisms across Europe

Etc.
4
Capacity remuneration
Renewable
subsidies
Unintended
consequences
(high coal burn, no
investment signal
from the
wholesale market
etc) leads to
further
intervention
CO2 market
Energy efficiency

5. Example: Capacity mechanisms – EU vs National
UK: Developing auction model;
Detailed design proposal
published June 2013, first
auction in 2014
EU calling for coordination: “If
mechanisms are not well
designed, set up prematurely
or without proper
coordination at EU level, they
may be counterproductive.”
IR: Capacity
payments in
place since 2005
NO, SE & FI: Strategic
reserve (if security of
supply is at stake)
DE: “Stillegungsverbot”
to be replaced by
capacity market by end
2017
FR: Capacity
obligation model
decided and
now being
designed
BE: Financial support
for new CCGTs
proposed
IT: Capacity market to be
implemented in 2017
ES: Capacity
payments.
5

6. From Statkraft's perspective

There is considerable value in having a trans-national market with predictable
framework conditions
- Investor confidence gives efficient investment and competitive prices

Capacity markets are coming – and are needed in some markets
- They must be market-wide, allowing for competition between all capacity providers.
- Transmission interconnectors are the most cost-effective solution to safeguard
reliability of supply, hence need to ensure that they are also incentivised

6
The EU ETS should be strengthened as the most efficient and effective way of
furthering the de-carbonisation of Europe

7. THANK YOU
www.statkraft.com