Statnett SF – Annual and Sustainability Report 2024

20 Mar 2025 14:47 CET

Statnett SF – Annual and Sustainability Report 2024

A different threat landscape requires a more resilient power grid

A resilient and robust power grid is the backbone of the power system and a
crucial component of Norway’s national emergency preparedness. Over the next
decade, Statnett will more than double its investments in the grid and power
system to enhance security and reliability.

"We are facing an increasingly challenging threat landscape, and Statnett is
committed to ensure a secure power supply, even in times of uncertainty. We are
working in close collaboration with authorities and other Nordic grid operators
to strengthen the resilience and preparedness of the power grid," says CFO and
Executive Vice President, Cathrine Lund Larsen.

The geopolitical situation and the energy transition are driving significant
investment in power grids across Europe. This forms the backdrop for Statnett’s
new strategy towards 2030, which aims to increase utilisation of the existing
grid and power system while constructing the grid and power system faster and
more efficiently. We will also enhance resilience and preparedness in operations
and development.

"We will operate efficiently while maintaining a strong focus on sustainability
and safety. Our objective is to initiate the right projects at the right time
and deliver solutions that are economically viable and beneficial to society,"
says Lund Larsen.

Solid underlying result
Statnett has delivered a solid underlying result. The underlying result was NOK
1,2 billion in 2024 compared to NOK 1,6 billion in 2023. The reduction in the
underlying profit is primarily due to increased costs for system services. At
the same time, financial expenses were higher in 2024. Increased costs were
partly offset by increased permitted revenue.

Congestion revenue was NOK 11,1 billion in 2024 compared to NOK 9,9 billion in
2023. Due to high congestion revenue, NOK 781 million was paid in compensation
to underlying grids in 2024.

"In recent years, Statnett has returned a significant amounts to customers
through reduced tariffs and extraordinary reimbursements", explains Cathrine
Lund Larsen.

Statnett's total investments were NOK 7,6 billion in 2024, which is NOK 1,5
billion higher than in 2023. The project portfolio continued to grow in 2024,
and Statnett plans to more than double the investments in the grid and power
system over the next ten years compared to the previous ten-year period. At the
end of the year, Statnett had 211 active projects, an increase of 51 projects
from 2023. The majority of the project portfolio is in its early phase.
Statnett’s ten regional development plans, together with the System Development
Plan, serve as key tools for prioritising which projects should be built and
when.

The cost of components and equipment for power grid projects have increased
significantly as a result of widespread grid investments across Europe.

"The constrained capacity in supplier markets is driving up prices, which will
also increase the cost in our project portfolio," says Cathrine Lund Larsen.

Strong Security of Supply and Lower Electricity Prices
Despite extreme weather events, security of supply remained strong throughout
2024.

Electricity prices were reduced across all Norwegian price areas, although price
differences between regions remained significant. Additionally, price
fluctuations increased due to higher shares of solar and wind power in the
Nordic region and in Europe.

"We are working to strengthen interconnection capacity between price areas to
help balance price differences and make better use of resources in the
electricity system. In autumn 2024, we introduced flow-based market coupling.
These are key changes that enable us to utilise the electricity grid more
efficiently across the Nordic region," says Lund Larsen.

New Reporting on Nature, People, and Climate
In 2024, Statnett is reporting for the first time in accordance with the
requirements of the Corporate Sustainability Reporting Directive (CSRD). This
ensures transparent, comparable, relevant, and reliable sustainability
information.

"Sustainability is an integral part of our operations across the organisation.
The new sustainability directive provides us with an important tool to
strengthen and coordinate Statnett’s efforts in planning and constructing the
grid with the least possible impact on both nature and people affected by our
activities," emphasises Lund Larsen.

Statnett's Financial Results
(Amounts in NOK million) 2024 2023
Underlying profit 1 218 1 585
Total permitted revenue regulated operations 17 938 16 675
Total operating expenses 14 341 13 147
Recorded profit for the period 1 720 -2 617
Recorded total operating revenue 18 961 11 600
Congestion revenue 11 062 9 943
Higher (+)- and lower (-) revenue 644 -5 387
Accumulated higher revenue at the end of period 4 535 3 891
Investments 7 619 6 078

Statnett’s financial performance is best reflected by the underlying result. The
Regulatory Authority for Energy (RME) sets a cap on permitted revenue, and the
underlying result is based on this.

The reported net profit for 2024 was NOK 1,7 billion, compared with a net loss
in 2023. The increase in the reported net profit is primarily due to higher
tariff and congestion revenue, as well as lower extraordinary reimbursements to
grid owners compared with the previous year.

The difference between the reported financial result and the underlying result,
referred to as higher or lower revenue, is adjusted through future grid tariffs.
This ensures that, over time, Statnett’s accumulated reported revenues align
with the regulated permitted revenue.

On 20 March 2025, the Board of Directors of Statnett approved the Group's Annual
and Sustainability Report for 2024. The Annual Report is enclosed and available
on www.statnett.no


Contact:
Cathrine Lund Larsen
Chief Financial Officer
Mobile: +47 979 75 867

Petter Erevik
Director of Finance
Mobile: +47 952 82 840

Anbjørg Bakken
Senior Communication Advisor
Mobile: +47 990 09 260

www.statnett.no

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641841_Annual and sustainability report 2024.pdf
641841_stane-2024-12-31.zip