Preface
Updated knowledge base
This report is an updated platform of knowledge for power from shore projects for existing fields and facilities on the Norwegian continental shelf (NCS). The mandate for the report is given by the Ministry of Energy.
The Ministry of Energy has tasked the Norwegian Offshore Directorate with updating the platform of knowledge for potential future power from shore projects for existing fields and facilities. Power from shore is described in several earlier reports. The last report was released in 2020.
Mandate for the report
The Ministry of Energy’s mandate for the assignment of establishing an up-to-date platform of knowledge for potential future power from shore projects for existing fields/facilities:
«At several occations, the Norwegian Offshore Directorate has prepared an updated knowledge base linked to power from shore projects on the Norwegian continental shelf. This was most recently done in 2020, and much has taken place in the field since then.
The Ministry has therefore called on the Norwegian Offshore Directorate, in cooperation with the Norwegian Water Resources and Energy Directorate (NVE), with the assignment to prepare an updated knowledge base regarding potential future power from shore projects, cf. Proposition 1 S (2024-2025) Ministry of Energy.
The updated knowledge platform shall include any new power from shore projects which do not already have a decision to concretise, and which are reported by the licensees in the autumn of 2024 («RNB (revised national budget) reporting»).
For projects included in this assignment, consideration shall also be given to the impact on electricity prices, regional power balance and the grid. An assessment shall also be made as to whether potential negative effects can be offset by measures such as increased power generation (incl. gas power plants with CCS (carbon capture and storage)) and grid development. Moreover, the effect of these projects on future greenhouse gas emissions from the sector shall be considered.
The Norwegian Offshore Directorate is also asked to assess potential resource-related consequences for fields/facilities that are not suitable for operation using power from shore.
The work shall be carried out by the Norwegian Offshore Directorate. In those areas which fall under NVE’s scope of responsibility, the Norwegian Offshore Directorate shall obtain assessments from NVE which will be included in what is ultimately delivered to the Ministry. The work shall be summarised in a report in the autumn of 2025.»
This report deals with the development of power from shore projects on fields in operation. Power from shore decisions have been adopted on a number of fields since 2020. This report provides an overview of these fields and discusses projects in the planning phase, and projects where work has been done but which have been discarded for a variety of reasons.
Resource consequences for fields/facilities as a result of the impact of high CO2 costs influencing the companies’ decisions are also highlighted.
Power from shore for potential new developments or conversions to use more power from the grid at onshore facilities does not fall under the scope of this report.
The report shall discuss which effects potential new power from shore projects have on the power system on land. According to the mandate, this shall be done on projects were there is no decision to concretise, and which were reported in the autumn of 2024. There were no such projects in the RNB reporting and the potential impact on the power system is therefore not discussed in the report.
RNB-reporting
RNB reporting is an annual process where, each autumn, the Norwegian Offshore Directorate receives updated information from the operating companies on activities and plans for fields, discoveries, pipelines and onshore facilities.
This is incorporated as a basis for the Norwegian Offshore Directorate’s work to draw up forecasts for the development in the petroleum activities. These forecasts are used as a basis for the work on the revised national budget (RNB), which is presented in May of each year.
The reporting also includes projects for conversion to power from shore.
The first time a project must be reported is after the licensees have made a decision to initiate a project (BOI). After that, the project is reported annually as the project matures and until it comes on stream, or is discarded. The most important milestones for submitting a PDO/PIO (plan for development and operation / plan for installation and operation (Norwegian only)) are:
- BOI – decision to initiate a project entails that the licensees have decided to start work on feasibility studies to identify a technically and financially feasible project.
- BOK – decision to concretise. The licensees have identified a technically and financially feasible concept that provides a basis for starting studies that will lead to a choice of concept.
- BOV – decision to continue. The licensees have chosen a concept and continue to study it with the objective of making an investment decision, i.e. a decision to implement.
- BOG – decision to implement. The licensees make an investment decision which results in submission of a PDO and/or PIO to the authorities.
After securing an approved PDO/PIO, the projects will continue to be reported as separate projects until they come on stream. After that, they become part of the normal reporting from the field.