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Davvi wind farm is a planned 800 MW wind farm in an area in East Finnmark, between the coast and the Tana River, mainly in the municipality of Lebesby. It covers an area of 63 km2 that is suitable for wind power production because of its high elevation, flat terrain, and high wind conditions. The wind farm will have some of Europe's best power resources, resulting in some of Europe's lowest power prices.
Wind power technology is constantly evolving, so it's challenging to provide an exact figure on how much power can be generated. If the wind farm were to be built with today's technology, it would produce slightly more than 4 TWh per year. This is equivalent to the annual electricity consumption of approximately 1.5 million electric cars. It corresponds to about 5% of the total annual electricity consumption in Finland. Additionally, it accounts for around 3% of the total annual electricity consumption in Norway and approximately 3% of the Swedish consumption.
The estimated construction cost is somewhere between 7 and 8 billion Norwegian kroner.
The biggest positive ripple effects are the ones that follow indirectly from bringing very cheap and clean electricity into the Norwegian power system. There it will be used to produce goods or services with a much lower carbon footprint and at a much lower cost than goods and services produced in other markets that do not have access to such cheap and clean electricity.
Example 1: Davvi provides electricity to produce 6 million tons of steel. If you place your steel factory in Northern Norway - with power from Davvi - instead of, for example, South Korea (one of the world's largest steel producers), you will save the planet nearly 65 million tons of CO2 over Davvi's lifecycle. This steel will have a very low carbon footprint, and it will compete on price. The CO2 savings come from the fact that electricity production from Davvi generates very low emissions.
Example 2: If we imagine that the electricity produced from Davvi powers a data center cluster, this data center cluster will displace almost 40 million tons of CO2 over Davvi's lifecycle, compared to if it were to be built, for instance, in California. These data centers will have a very low carbon footprint and will have a much lower electricity bill in Northern Norway than in California.
Based on experiences from other Norwegian wind farms, Davvi's direct impact on the region will constitute about 400 million NOK in value creation during the construction phase. The construction will have a positive effect on local and regional employment during the construction period. It is estimated that around 30 full-time equivalents will be needed for the operation and maintenance of the wind farm.
The project is owned by the company Grenselandet DA. St1 and Ny Energi AS are behind Grenselandet DA. St1 is the majority owner.
Ny Energi is involved in the development and establishment of wind power projects throughout the country, with a particular focus on Finnmark. Ny Energi also assists with the development of wind power projects internationally.
St1's vision is to be a leader in the production and sale of CO2-conscious energy. The production of renewable energy is at the core of our business strategy: Our goal is to gradually replace fossil energy with renewable solutions. This project aligns with our vision and represents an important step toward a portfolio consisting of renewable energy.
You are absolutely right that Davvi wind farm is a large energy project, and it is precisely the project's size that ensures Davvi has minimal negative consequences per unit of energy produced. Davvi should become the model for how we develop wind power in Norway because when we do it on a larger scale, we get much more out of each intervention than when we do it on a smaller scale.
The red areas on this map show the influence areas (mostly visibility areas) of all concession-granted wind power projects in the northern part of Nordland, Troms, and Finnmark. This area is almost six times larger than Davvi's influence area (the yellow circle). All of these red parks together produce less electricity than Davvi. In other words, you get more power for one-sixth of the intrusion.
This is what we mean when we say that Davvi should become the model for how we develop wind power in Norway. In the energy sector, we need to prioritize large renewable projects in areas with low biodiversity and good energy resources. This is how we can minimize the consequences for every kWh of electricity we produce.
Regarding the consequences for reindeer husbandry, an independent impact assessment has found that in the operational phase, the access road to the park constitutes the most significant negative consequence, classified as small to medium negative. Because the wind farm itself is located in an area entirely without grazing grounds, only the access road will occupy an area suitable for reindeer pastures.
There are three reindeer grazing districts within Davvi's influence area. We have an agreement with one of the affected reindeer grazing districts.
Agreements have not been reached with the other two reindeer grazing districts within the influence area yet. Grenselandet still hopes to be able to reach an agreement, but if it proves to be impossible, Grenselandet has prepared a unilateral declaration on behalf of the project, in which individual siidas (reindeer herding units) will be compensated for any potential consequences.
If we consider the agreements and mutual declarations as a whole, Grenselandet wants to achieve two things. Firstly, the project aims to secure measures that mitigate the direct consequences of development. Secondly, Grenselandet recognizes that reindeer herding in the area predates the project and has a unique status that should allow reindeer herding to share in the value creation generated by the project.
Therefore, reindeer herding is compensated both through direct payments and indirectly through the regional business fund that is established.
As part of the permit application, we have obtained a legal assessment that evaluates the Fosen case in relation to the Davvi wind farm project.
It concludes, among other things, as follows: When the development area consists mostly of stone scree that is neither used for reindeer grazing nor for reindeer migration between summer pastures in the north and winter pastures in the south, it is unlikely that the development will have any impact on access to pasture or reindeer migration. In this case, it falls well below the threshold for violation of the United Nations International Covenant on Civil and Political Rights, Article 27.
Read the entire consideration here.
When it comes to noise, Davvi wind farm will be quite far from the nearest settlement. Therefore, the noise issue is minimal.
An independent impact assessment conducted by Multiconsult found that there are no houses, cabins, or other noise-sensitive buildings that will be exposed to noise above the recommended threshold of 45 dB. For comparison, bird chirping is around 44 dB, and a refrigerator in a typical household produces around 55 dB of noise.
Wind farms are large man-made structures and can have an impact on those who live nearby or travel in the area. For those who find wind turbines unsightly, Davvi will not be an exception. For those who are positive about wind power and renewable energy projects, wind farms are often seen as important and necessary to reduce the carbon intensity of our energy system.
One of Davvi's biggest advantages is that the project addresses the most significant threat to biodiversity that we face, which is climate change. We must consider the consequences in the context of what Davvi delivers. With the clean and inexpensive power generated by Davvi, we can produce products that displace value chains based on fossil energy elsewhere in the world.
We achieve this by utilizing a limited area where independent impact assessments have found that protected areas, important natural types, or valuable geological features are not affected. Davvi is a large renewable project in an area with low biodiversity and excellent energy resources. By developing Davvi, we minimize the consequences for each kWh of electricity we produce.
We agree that pristine nature has intrinsic value, but we are also convinced of the urgent need to increase renewable energy production. This leads us to a set of trade-offs in deciding where to generate this energy. Davvi wind farm will be located in an area with some of the world's best wind resources, while being planned in an area with low biodiversity.
Investments from foreign investors in Norwegian energy production is not new, and it's not necessarily a bad thing. However, it's not the case that only foreign investors are involved in the development of Norwegian wind power. Much of the wind power in Norway has been built with the help of foreign investors. This is primarily because foreign investors require a lower return on investment (interest) than Norwegian investors. The net effect of this is that we all pay a lower price for electricity than we would otherwise.
Davvi wind farm will produce very cheap electricity. Even when we calculate the costs of building the entire wind farm, the costs of balancing the irregular wind power, and the cost of connecting Davvi to the central grid, the electricity produced at Davvi will still be cheaper than the marginal cost of coal power. This means that it is more profitable to build Davvi than to operate existing coal power plants.
We have reached a point where new wind power is not only competitive with some other forms of energy production but actually the cheapest form of energy production. For several decades, we have been waiting for renewable energy to outcompete fossil energy. Because we know that when it happens, investments will shift away from fossil fuels to renewables. This is a very positive development.
Davvi wind farm will produce very cheap electricity. Even when we calculate the costs of building the entire wind farm, the costs of balancing the irregular wind power, and the cost of connecting Davvi to the central grid, the electricity produced at Davvi will still be cheaper than the marginal cost of coal power. This means that it is more profitable to build Davvi than to operate existing coal power plants.
We have reached a point where new wind power is not only competitive with some other forms of energy production but actually the cheapest form of energy production. For several decades, we have been waiting for renewable energy to outcompete fossil energy. Because we know that when it happens, investments will shift away from fossil fuels to renewables. This is a very positive development.
The development in wind power technology is happening at a very rapid pace. Today, most manufacturers guarantee a 25-year lifespan for the turbines, and there are indications that the lifespan will increase in the future.
The application assumes that a 420 kV power line will be built from Skaidi to Varangerbotn. More information about Statnett's plans for grid development in East Finnmark can be found here...
Nearly all electricity production in Norway is renewable, with hydropower accounting for 89 percent of this production. Wind power makes up about 10 percent. However, Norway still consumes large amounts of fossil energy in sectors like transportation, agriculture, the oil industry, and industrial processes. Many of these Norwegian value chains that currently depend on fossil energy will need to be electrified in the coming years. To facilitate this transition, we require significant new renewable electricity production. Even though almost all the electricity we generate is renewable, we still don't produce enough electricity to meet our needs.
The European energy landscape is changing rapidly. The need for renewable energy sources like wind power is growing, and Europe is aiming to develop approximately 350 gigawatts of wind capacity by 2030. To put this into context with the Davvi wind farm, it means that Europe would need to build around four 1,000 MW wind farms every month from now until 2030 to meet these targets. The Davvi wind farm has a capacity of 800 MW. These estimates were made before the current energy crisis in Europe, and they don't account for the increasing need for European energy production due to the disruption in Russian gas supplies.
The upgrade of hydropower alone is not sufficient to meet the future energy demand. According to the Norwegian Water Resources and Energy Directorate (NVE), if we focus solely on the refurbishment and expansion of existing hydropower plants, the technical and economic potential is estimated to be around 7.6 terawatt-hours (TWh). Furthermore, in their "Long-Term Electricity Market Analysis" from 2021, NVE estimates that by 2040, Norway's energy demand will increase from 138 TWh to 170 TWh. Davvi alone can produce up to 4 TWh with today's technology.
The permit applicant for Davvi wind farm is Grenselandet DA.
Grenselandet is owned by the energy companies St1 and Ny Energi, with St1 being the majority owner.