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Europe's Energy Transition: Statkraft and Nordex Lead the Charge Toward Sustainability

Over the past decade, Eurostat reports a consistent decline in the market shares of major electricity and gas producers across the EU. Despite this trend, Europe's demand for energy is anticipated to rise, even amidst economic challenges.

 The International Energy Agency (IEA) predicts a global surge in electricity demand, surpassing last year's levels. While there's a temporary sense of equilibrium post-energy crisis, future demand and supply dynamics remain uncertain. Experts highlight our current reliance on global LNG markets, which in turn hinges on China's economic growth.

 In addition, Icis consultancy, as reported by Montel News, forecasts a 2.9% increase in Europe's electricity demand in 2024 and 2.7% in 2025, driven by a partial industrial recovery. Specifically, the steel sector is expected to experience a mild rebound in power demand following a prolonged downturn.

The Nordex Group, a leading German wind turbine manufacturer, has recently clinched a notable order from UKA, a developer of wind and solar parks, to supply 39 turbines with a total generation capacity of 253MW, to be installed across various federal states in Germany by 2025 (Energy Connects, 2024). This agreement, which also includes a 20-year servicing contract which is a part of a larger deal where UKA ordered 450MW of wind turbines from Nordex in the past three months that could significantly contributing to Germany's energy transition. The collaboration between Nordex and UKA shows a strong partnership aimed at advancing the country's commitment to a climate-friendly and independent electricity supply (Energy Connects, 2024). With the installation of these turbines, both companies are set to play a pivotal role in propelling Germany towards a sustainable and renewable energy future, marking a critical step in the nation's ambitious energy transition plans.

Statkraftfrom which belongs to the nordic power maket is Europe's biggest renewable energy generator and a hydropower leader, delivered its second-best performance ever in 2023 (Statkraft, 2024). This achievement is even more impressive considering the significant drop in power prices compared to 2022's record highs. While net operating revenues and underlying EBIT decreased year-over-year (NOK 75.3 billion to NOK 65.3 billion and NOK 54.4 billion to NOK 41.4 billion), Statkraft's strong market activities and energy management strategies ensured a healthy profit after tax of NOK 26.1 billion (Statkraft, 2024).

Statkraft's commitment to growth is evident. They recently acquired the Spanish renewable energy company Enerfin for NOK 21 billion which expands their portfolio (Statkraft, 2024). Additionally, planned investments of NOK 44-67 billion in Norwegian hydro and wind power, combined with a record 64 TWh in long-term agreements with Norwegian industries, solidify their dedication to renewable energy. Statkraft aims to develop a staggering 2,500-3,000 MW annually by 2025, reaching 4,000 MW by 2030 (Statkraft, 2024). These strategic investments, coupled with international expansion, position them as a frontrunner in driving the renewable energy sector's growth and meeting the global demand for sustainable solutions.


References:

Nordex Enjoys Order Boom as Germany's Major Wind on Land Energy Drive Gains Momentum. (2024, April). Energy Connects. https://www.energyconnects.com/news/renewables/2024/april/nordex-enjoys-order-boom-as-germany-s-major-wind-on-land-energy-drive-gains-momentum/

Statkraft. (2024). Second strongest results ever. Statkraft. https://www.statkraft.com/newsroom/news-and-stories/2024/second-strongest-results-ever/


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