SN Power is a Norwegian state-owned commercial investor and developer of renewable energy projects – the only one in the world to operate exclusively in emerging markets. SN Power owns and operates hydropower and wind plants in the Philippines, Laos, India, Nepal and Sri Lanka in Asia, and in Chile and Peru in South America. It has offices in Norway, Singapore, Vietnam and Brazil and recently expanded to new markets in Africa and Central America. Its business objective is to become a leading hydropower company by transferring Norwegian hydropower technology and contributing to economic growth and sustainable development.
SN power’s activities in Southeast Asia
The recent global financial crisis was a litmus test for Southeast Asia’s economic dynamism. The region has emerged strongly from the test with over 7 percent economic growth rate in 2010, largely as a result of the considerable improvements in the macroeconomic and financial policies carried out over the past decade. While this is encouraging, many challenges remain, in particular achieving more balanced growth in the future.
Per capita electricity consumption in the region is around 1,200 kWh. However, due to large economic disparity among the countries, the per capita electricity consumption ranges from 100 kWh in Myanmar and Cambodia to 8,100 kWh is industrialized Singapore. In Southeast Asia, about 38 percent of the total population does not have access to electricity. The electrification level in rural areas is about 51 percent, compared to 90 percent in urban areas.
The OECD expects real GDP growth in most Southeast Asian countries to reach 6.0 percent per year on average in 2011-15, similar to the pre-financial crisis level. With such economic growth, the demand for energy is expected to grow even faster. SN Power believes it can strengthen Southeast Asia’s long-term renewable generating capacity with commercial development and operation of economically viable, environmentally sound and socially responsible hydropower.
The Philippines
SN Power and local partner Aboitiz Power formed a 50–50 joint venture company, SN Aboitiz Power (SNAP), in 2006. This company has grown to become one of the largest private renewable energy companies in the Philippines with three major hydropower plants located in the northern island of Luzon. The partnership is a successful cornerstone in SN Power’s strategy as it complements each company’s strengths in cultural, business and technical dimensions. The continuing success in the Philippines is attributed to the balanced commercial strategy and willingness to innovate. In addition to the role as owner and operator of the three plants, SN power capitalized in 2010 on its know-how to be the first private provider of ancillary services. Around 34 percent of revenues now come from trading on the spot market, with the Philippines among the first emerging economies to have a deregulated power market.
Singapore
In 2010, SN Power launched its Global Services initiative, an internal consulting group designed to attract, develop and retain global expert resources. SN Power’s project teams gain world standard expertise in state-of-the-art hydropower technology, operation and maintenance which the company aims to transfer and further progress in new projects. The Global Services team works with quality assurance and training to refine the services provided to contracted employees on a global basis.
Vietnam
Vietnam economic dynamism over the past two decades has given rise to a swift increase in energy demand. According to the World Bank, power demand is expected to rise in the double digits annually until 2015. Vietnam’s current power infrastructure has been struggling to cope with increasing demand as a consequence of rapid economic growth.
SN Power acknowledges that Vietnam’s great potential for hydropower projects and Vietnam’s ambitious plan to establish a competitive power market will aid in closing the country’s energy gap.
SN Power and IFC, the member of the World Bank Group focusing on private sector development in emerging markets, entered into a Joint Development Agreement in 2010 to provide sustainable alternatives for meeting the growing demand for electricity in Vietnam, through renewable energy generation. The Agreement will enable SN Power and IFC, acting through IFC InfraVentures, an early stage project development fund, to develop an investment strategy, policy, and guidelines to address Vietnam’s growing demand for power. The partners will acquire operating assets and invest in greenfield projects to build up a portfolio of renewable energy investments in the country.
IFC and SN Power have worked together on renewable energy projects across the globe, and IFC welcomes SN Power’s proven financial capability, technical expertise, and overall commitment to developing Vietnam’s power sector. The partnership will pave the way for a strong portfolio of renewable energy projects that will make critical contributions to sustainable and environmentally sound economic development in the country.
Demonstrating a long term commitment to the Vietnamese market, SN Power has also established a Representative Office in Hanoi, with a formal opening in October 2010. Present at the opening event were representatives from SN Power’s Board of Directors, SN Power’s Executive Management, Norway’s Ambassador to Vietnam, Ståle Risa, IFC’s leaders and staff, as well as relevant Vietnamese Ministries and Agencies in the power sector.
In his Opening Speech in October, Norway’s Ambassador to Vietnam, Ståle Risa, explained the solid diplomatic relations between Vietnam and Norway, and emphasized that the importance of the state-owned SN Power’s local presence in Vietnam signals the interest Norway has in investing in and contributing to Vietnam’s development.
Vietnamese
