INVESTING IN RENEWABLES IS THE WAY FORWARD FOR VATTENFALL

France Vattenfall intends to enable investments totalling more than SEK 50 billion over the next five years in renewable electricity generation, Magnus Hall writes today (1 December) in a debate article in Swedish daily Svenska Dagbladet.

The UN Climate Conference in Paris started on 30 November. The world’s leaders will now try to obtain an international agreement obliging all countries to reduce their emissions of greenhouse gases in accordance with the target of the UN Climate Convention to limit global warming to below 2°C.

“A paradigm shift”
Vattenfall’s CEO Magnus Hall writes in Svenska Dagbladet that for the energy industry this means moving away from fossil production.
“We are going through a paradigm shift which is challenging the model of large-scale energy generation and distribution to end users in favour of decentralised and individualised energy solutions. The customer will become an increasingly integrated part of the production cycle instead of at the end of a chain as before. The large-scale model is also characterised by the fact that it is, with the exception of Sweden and Norway, largely based on fossil production. That is not sustainable over the long term.”

SEK 50 billion
For Vattenfall, this paradigm shift means that the company is moving to change its production portfolio and reduce its share of fossil fuels in favour of renewables.
“Our aim is to be one of the largest producers of renewable energy in Europe and to triple our installed wind power capacity within ten years. In the period 2016-2020, we intend to be a driving force in investment projects in renewable production in the Nordic region, Germany, the Netherlands and Great Britain, to the tune of over SEK 50 billion,” writes Magnus Hall.

He sees partnership as the key to success.
“Vattenfall does not necessarily need to own 100 per cent of all its power plants in future. We will be the experts who develop and build them as well as being responsible for their operation, maintenance and market link-up, but we will be happy to do that together with other co-owners.” 

Acting as leader
Magnus Hall hopes that the climate negotiations in Paris will ultimately lead to a binding agreement whereby all countries will contribute to reducing their carbon dioxide emissions.
“The best way to reduce carbon dioxide emissions at EU level, as we see it, is to strengthen the EU emissions trading system – EU ETS. My ambition is that Vattenfall shall be a leader in the energy transition by acting on a commercial basis and taking advantage of the opportunities opened up by the new energy landscape. Only by creating the preconditions for profitability can Vattenfall contribute actively to a sustainable development over the long term.”

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