Joint wind energy initiative in Mid-Norway

May 27, 2005, 14:00 CEST

Norwegian power company, Nord-Trøndelag Elektrisitetsverk (NTE), and Hydro are jointly establishing a wind power company, Sarepta Energi AS.

“We are very positive towards the cooperation and think it will help boost our increasing wind activities in mid-Norway,” says Alexandra Bech Gjørv, head of New Energy in Hydro.

Sarepta Energi AS, currently a company without employees, will set up its head office in Steinkjer, near Trondheim, Norway. As stipulated in the agreement, NTE will assume the role of board chair during the first period, while Hydro will lead daily operations.

Sarepta Energi AS builds on a cooperative agreement entered into between NTE and Hydro in 2004, where the two parties agreed to join forces on several new wind energy projects, first and foremost in the municipalities of Osen, Flatanger and Roan.

NTE’s board approved the establishment of Sarepta Energi AS on Friday. The board will additionally recommend to the general meeting that the board be authorized to transfer 90MW of Ytre Vikna Windmill Park’s final concession of 250 MW.

Last Tuesday Hydro approved the plans for the cooperative venture, which also involves Hydro transferring its 90 MW concession for Harbakfjellet to the new company. The plan is to develop future wind power projects by placing them in a subsidiary of Sarepta Energi AS.

Operative organisation in NTE

If NTE is competitive, it will set up a an operational and maintenance organization for the wind parks developed by the new energy company.

“NTE has considerable plans for developing wind power during the coming years. Our company will require considerable financial muscle to carry out these plans,” says NTE board chairman Kolbjørn Almlid.

“We therefore consider it of interest to set up a joint energy company for future wind power developments in conjunction with a major partner such as Hydro. Sarepta Energi AS gives us a more solid platform from which to implement our plans. We are also certain that we can create further spin-off effects in our region.”

“In addition, we know that Hydro, one of the country’s leading industrial companies, has broad  international experience and expertise when it comes to innovation and development. We also know that Hydro’s considerable project and procurement competence will be decisive for the execution of the major projects we have ahead of us,” adds Almlid.

Solid joint expertise

“Both NTE and Hydro possess considerable renewable energy expertise and experience gained in the operation of major and minor hydroelectric power plants,” says Alexandra Bech Gjørv, head of  New Energy in Hydro.

“At the same time we share a commitment to wind power as an important part of a future energy portfolio, and the intention of developing an exciting new energy field. NTE has gradually acquired solid expertise in the design and operation of wind power installations and we are therefore very positive to this cooperation.”

Both companies have long traditions as hydroelectric power producers. NTE is currently a major participant in the hydroelectric sector in Trønderlag, with a production of 3.1 TWh in a normal year. Hydro is Norway’s second biggest power producer, with a normal annual production of 9 TWh.