STATNETT CASE
STATNETT – PREPARING FOR THE NEXT GENERATION OF ENERGY MARKETS IN EUROPE
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tatnett is an important enabler in reaching Europe’s future climate goals. However, this role cannot be fulfilled without substantial changes in both the strategic and operational focus of the company. Statnett owns the larger part of the national high voltage electricity transmission grid in Norway, consisting of approximately 10,000 km of high voltage transmission lines as well as numerous transformer and connector stations. The company is also appointed as Norway’s Transmission System Operator (TSO) with an overall responsibility of co-ordinating the operation of the country’s electric power system, continuously maintaining a correct balance between supply and demand. The EU has set a target of 20 per cent of the energy consumption to come from renewable sources in 2020. This means that new renewable power is highly important for Norway’s contribution to European emission reductions. To achieve such high reductions, the European countries have to co-operate in order to develop cross-border transmission capacity as well as an effective single European power market. Norwegian flexible hydro power and other renewable energy sources can contribute to the EU’s climate goals and give added value for Norway – with Statnett as a key enabler. With an industry characterised by long lead times and a traditional view on the role of national transmission power grids, we saw the need for major changes if Statnett should be able to play a proactive role in ensuring renewable energy to Europe in addition to securing Norwegian supply. As a consequence, we conducted a thorough strategy process in 2009, which resulted in a redesigned strategic agenda setting the long-term strategic direction for the company towards 2050 with specific strategic initiatives to be implemented during the period 2009-15.
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ost of our organisational units are and will be involved in the strategy implementation, which is closely monitored by the corporate management team. Even though we are in the early stage of the implementation, we have already experienced that the new strategic agenda has changed the everyday work for many of Statnett’s 700 employees.
Statnett’s new strategy for 2009-15 encompasses the following pillars •
Develop and upgrade current grid infrastructure (“next generation high voltage grid”)
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Increase focus and investments in the northern parts of Norway
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Enhance transmission capacity to the rest of Europe
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Support development of new sources of renewable energy
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Ensure European positions to ensure effective, market-based solutions – providing renewable energy and stable system services from Norway to the European markets
The agenda has a strong cross-Nordic focus taking into account that an integrated Nordic grid is a prerequisite for ensuring a stable and secure energy supply to both Norwegian and European energy markets.
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or Statnett’s employees and stakeholders, the strategic agenda represents a major shift in how the organisation works. First of all, a successful implementation of the new strategy requires enhanced competences and increased capacity with regard to the ability to manage several complex projects while also avoiding any damage to the environment. Furthermore, units in charge of Statnett’s network operations are faced with new requirements in terms of offering integrated and professional services to key customers – shifting from a traditional public sector to a customer and market-oriented management perspective. Also, the proactive role requires Statnett to work actively with key stakeholders – ensuring that decisions related to the development of the renewable energy sector are made based on an in-depth knowledge of reaching markets through modern and efficient transmission power networks. A number of organisational change initiatives have been initiated to ensure the successful implementation of the strategy
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Development of revised targets and new work processes related to customer management and handling – including organisational structure, KAM, support systems and staff training Design and implementation of organisational changes on corporate and divisional levels – including work processes, competences, staffing and structure Redesign of current key IT systems and procedures to ensure same quality of data in operations, maintenance and development Development of solutions for strengthening a joint Nordic energy market – including a well-functioning end-user market across national borders Redesign of how our employees interact with each other – including the design of new HQ offices
These initiatives represent only the first steps on our new path of contributing to Europe’s future energy markets while ensuring the values of Norwegian renewable energy sources. However, we feel certain that in 2015, Statnett will be considered a valuable and important enabler – seeking solutions that support an effective power market while contributing to increased accessibility to renewable energy provision to both Norwegian, Nordic and European markets.