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The Key to the Green Transition: Closer Nordic Cooperation – Peter Strannegård at the Å Energi Conference

05 June 2024, 10:55 EEST

How can we ensure a fossil-free future in the Nordic region? Peter Strannegård, Executive Vice President of Renewables and Decarbonisation of Fortum, believes the solution lies in a balanced plate model and closer cooperation across countries and industries. Find out how Norway and the Nordic region can lead the green transition.

— To succeed in the green transition, closer Nordic cooperation and a well-established plate model structure are key. This was emphasized by Peter Strannegård on stage at the Å Energi Conference on June 4th in Kristiansand. Strannegård delivered a 10-minute presentation and then shared the stage with Å Energi CEO and host, Steffen Syvertsen.

This year's Å Energi Conference had the theme "The World Won't Wait for Norway." The conference highlighted how the world is in the midst of a total energy system transformation, where energy policy has become security policy, creating new geopolitical tensions. Increasing conflicts and costs pose obstacles, and in neighboring countries, the energy transition is moving at a record pace. The question posed by the conference was: How do we ensure that Norway does not fall behind? 

Introducing The Plate Model

In his presentation, Strannegård emphasized how a successful green transition in the Nordic region depends on our ability to cooperate, both across countries and industries. 

— The power system needs a mix of weather-dependent, flexible, and plannable power sources. Weather-dependent sources, wind and solar, provide the cheapest energy when the wind blows or the sun shines. Flexible sources, especially hydropower, can quickly ramp up and down to cover when wind and solar do not deliver. Plannable sources, nuclear power, and combined heat and power provide a stable base near end-users, reducing the need for flexibility and grid expansion.

 —  It's about three factors: what, how, and where. Should each country build everything?

— At Fortum, we have introduced the philosophy of the dinner plate model. Just as the body needs a balanced diet, the power system needs a balance of different types of power, with various capabilities, to function optimally. For a fossil-free power system to be both reliable in supply and offer low system costs, a balanced mix of different capabilities is necessary.

— The Nordic region is ideal for such a plate model example of predictable fossil-free energy, and with Norway's significant hydropower, which is so flexible, Norway is ideal for wind and solar in that balance, he explained to the audience. 

Mind the Gap

Strannegård also emphasized that as power-intensive industries look to decarbonize, a gap arises between the price industries want to pay for energy and what energy companies need to invest. 

In the Nordic region, there should be an overarching architect for the energy system. We should consider where we build new energy, what type of energy, and for whom. 

For energy companies, we need to ensure a return on investments, and the industry needs predictable access to electricity and predictable prices. We need to better structure how and where we build new renewable sources in the Nordic region, he concluded.