Today, Statnett is solely responsible for the “motorways” in the Norwegian power system, i.e. the high-voltage lines (420 kV) that carry electricity between the various parts of the country. In total, billions have been invested in the transmission network in the last ten years, and the plan is for the investment to be just as large in the next ten years in line with the increase in Norwegian electricity use. Historically, these lines have been built by Norwegians, but not after the turn of the millennium. An overview in the latest edition of the trade journal Energiteknikk shows that all construction projects since the nineties have gone to foreign companies. There is no overview of the size of these contracts, but “cautious estimates” from industry management say that foreign contractors have had at least NOK 7 billion in income from Statnett since 2014. In November, Croatian Dalekovod – “Statnett’s court supplier” – was commissioned to build the new motorway for current across the Sognefjord. No Norwegian energy contractors participated in the bidding round. – Serious in terms of preparedness – Statnett has systematically contributed to the fact that Norwegian expertise in the central grid has been built down, says business policy advisor at Energi Noreg, Jørgen Thaule. He says it is “serious in terms of future preparedness” that the backbone of the Norwegian power grid today is in Zagreb (Croatia) and Brescia (Italy). – It is a cross of thought that we have made ourselves dependent on foreign suppliers, and completely neglected to design contracts that allow Norwegian contractors to participate in the development of the central grid. On Tuesday, Ola Elvestuen (V) sent a written question to Energy Minister Terje Aasland (Ap), in which he asks how the minister will ensure that Statnett contributes to developing Norwegian expertise for the central grid. – It is serious that competence has been built down in Norway. The situation in Europe shows how important critical infrastructure is, and how important it is to have good preparedness, he says. news has been in contact with the Ministry of Oil and Energy, but has so far not received a reply. Helge Rysjedal is managing director of the contracting company Eviny Solutions AS – We are concerned that too many assignments go to a small minority of foreign players. What does this mean for the safety and preparedness of our own critical infrastructure? he asks (see quote box for more reactions). – Using cheap foreign players will probably cost more than it costs in the future. In addition, Ukraine will need help to build up that infrastructure. Ideally, Norwegian companies could contribute here, says business policy adviser at Energi Noreg, Jørgen Thaule. Photo: Telenor To news, Statnett points out that they would like to see “more Norwegian contractors establish themselves as competitive on large developments”, but that the Supply Regulations and the Public Procurement Act mean that they cannot favor Norwegian companies (see the full answer below). Statnett responds to this – We will invest up to 100 billion in the network by 2030. To succeed in doing so in the most efficient way possible, we are dependent on a good supplier market. It will be a strength for us if several Norwegian contractors establish themselves as competitive on large pipeline developments. Although we invest heavily in network development, the scope of our activity is not enough on its own to create a functioning market. Therefore, Norwegian suppliers who wish to establish themselves in this market must ensure that they are competitive internationally. Already today, the vast majority of awarded contracts relate to network projects to Norwegian contractors and suppliers. This applies to, for example, ground work, construction, roads, forest clearance, engineering. In 2020, approximately 70 percent of our deliveries to development projects were from Norwegian suppliers (based on registration in the Brønnøysund Register). In addition, we know that foreign contractors use Norwegian suppliers. In order for Norwegian and foreign companies to be able to compete on an equal footing, all contractors who work for Statnett are subject to the same regulations linked to the Working Environment Act and regulations on wages and working conditions. This also applies to subcontractors. We are subject to the Public Procurement Act and the Supply Regulations, and must act in accordance with the principle of equal treatment in the regulations. Therefore, this is about being competitive in terms of volume and deliveries for each individual request. In the Hurdal platform, the Støre government writes that “procurement rules must be designed and adapted so that Norwegian companies can participate in the competition”. – For us, it is an important point, says Erling Sande, who is a parliamentary representative for the Center Party. He calls it “an unfortunate development” that the construction of Norwegian high-voltage lines is left to foreign companies such as Dalekovod, Valard Construction, Rebaioli and Consorzio Italia 2000. – It is important that we maintain and strengthen Norwegian expertise in such a central area as power supply. In addition, it is an independent point that Norwegian companies can take part in the competition for public contracts. It is important if we are to continue to ensure value creation and employment in business throughout the country, he says. – Must give the Norwegian entrepreneurs a real chance to compete Helge Rysjedal, managing director of Eviny Solutions AS – We want to be a current bidder on Statnett’s project, and thus be able to build expertise and jobs in Norway. We are concerned that too many assignments go to a small minority of foreign actors. What does this mean for the safety and preparedness of our own critical infrastructure? We would like to have a dialogue with Statnett to understand how we can equip ourselves to become a relevant supplier, and create activity and growth in Norwegian business. Statnett should include serious working life, requirements for the use of apprentices, HSE and sustainability in its qualification requirements and award criteria. Stein Arne Bakken, Energiteknikk – We must not forget that after the war and until the 2000s, the central grid was built with Norwegian expertise and manpower. So the energy nation Norway should be able to meet this promise. But then Statnett must recognize its responsibility by giving the Norwegian energy contractors a real chance to compete. Only in this way can Norway build up its expertise anew, rather than still being dependent on a few other foreign construction companies. Difficult tasks await, and then we must take matters into our own hands. Jonas Klarén, Infratek/Omexom – It is disturbing to see that one of the richest countries in the world does not make use of domestic labour, but only looks at the price tag. It seems that the focus is only on the services costing less this year than they did last year. The investment that lies before us now will demand an extremely high amount from both network owners and suppliers. If we are to succeed in our goal of doubling capacity within the next 27 years, we need 5,000–6,000 energy fitters working 100 percent. Today, we have around 4,000 – 5,000 energy fitters in Norway, approx. half of these will retire within the next 5 to 10 years. Aslak Andersen, Otera Infra – It is a shame that over time Statnett has only invested in foreign suppliers for line construction. It has watered down national competence in building socially critical infrastructure on line construction without Statnett showing any responsibility for the fact that this has happened. It is still not too late to turn around, there is a lot of expertise in the various Norwegian companies, but Statnett, as the largest public buyer of these services, should be clear about its supplier strategy. In September, the Ministry of Petroleum and Energy asked NVE to establish a “fast track” to speed up the development of the Norwegian power grid. Measures for employment end up in the Netherlands A salient point in the debate is how rigid the EEA regulations are, and how “creative” the client can be in designing the award criteria. The issue came to a head in 2020 when the Storting adopted an oil package to help Norwegian industry through the corona crisis. One of the measures was for the Institute of Marine Research to build a new ship at a cost of NOK 110 million. The measure was under the heading “Measures to increase activity and employment – get people back to work”. Nevertheless, the mission ended up in Dutch hands. Director of Marine Research Sissel Rogne explained that they did what they could to ensure that the contract ended up in Norway, but that it was not possible. – I will promise you that we examined the room for action. We have done what was in our power, she said. Newspaper Energiteknikk has previously criticized the way in which construction assignments in the central grid are awarded. Statnett, for its part, points out that they follow the EEA’s regulations for public procurement, and that the Norwegian contracting companies are not competitive. Photo: Solum, Stian Lysberg / SCANPIX Sofie Marhaug (Raudt) is second deputy chair of the Energy and Environment Committee at the Storting. She calls it “a declaration of bankruptcy” that foreign companies have taken over the construction of the large power lines. – This is completely fundamental infrastructure and there are therefore very good reasons to maintain expertise in this field in Norway, she says. She adds: – There is broad agreement to make major upgrades in the future. Then we should also be able to do more of the work ourselves. Here the politicians should look at the tenders, and what is emphasized. – Price will be weighted lower In September, the Ministry of Petroleum and Energy asked NVE to establish a “fast track” to speed up the development of the Norwegian power grid. The background is, among other things, that activity among those who build and install the power grid in Norway has decreased. Øystein Søraas is the day-to-day manager of Kraftmontasje, which builds and operates high-voltage and low-voltage plants all over the country. In recent years, he has seen a trend towards price being weighted lower in tender processes, and criteria such as the environment, affordability, financial feasibility and quality being weighted higher. He is therefore hopeful for the future. – This is an international industry. We have to take that in. The most important thing now is to look ahead, and get more projects out of the drawer and onto the market. – Is there an appeal to Statnett or responsible politicians? – Both parts!
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A foreign company has taken over all the construction of large power lines – news Vestland
