Fossil fuels still represent a major share of power generation sources for the Faroe Islands utility, with the publicly owned power company’s total oil consumption amounting to about 165 million DKK (22.2M EUR) in 2020.
“Historically, this is a record figure in a year both in quantity and cost,” SEV stated. “The one-year delay in the expansion of green energy production, the under-average production from hydropower and wind, plus a major increase in the demand for electricity, altogether resulted in the increase in oil consumption.”
As for renewables, five sustainable energy sources fed the grid in 2020, according to SEV.
“Breakthroughs have been made in 2020. It was the first year in which five different sustainable energy sources produced power for the grid: hydro, wind, solar, biogas, and tidal energy.”
Seven new wind turbines in Porkeri on the island Suðuroy were installed with commissioning starting in 2020, the first new wind farm in the Faroe Islands since the Húsahagi wind farm commenced operations in 2014.
The wind farm at Porkeri “is part of a larger project involving a battery storage system matching the capacity of the wind farm and a synchronous compensator. With the battery and a synchronous compensator 100 percent of demand could be met with wind energy when conditions suit.”
Yet total sustainable energy production in 2020 amounted to less than 39pc. of total electrical production.
“Below-average hydro power production, considerably lower wind power production paired with an increased electricity demand resulted in a relatively low percentage of total production,” SEV noted, adding: “The goal remains to reach 100pc. sustainable onshore electricity production by 2030.”
The utility’s financial result for 2020 was a profit of 49.8 million DKK (6.7M EUR) after taxation, SEV announced following its Annual General Meeting, which was held on April 23rd.
“This represents a slightly lower result, compared with the overall activity of SEV during the year,” the announcement read, adding: “However, the result is satisfactory, especially when considering the challenges of the coronavirus pandemic.”
“Future results for SEV should be at this level, considering the major upcoming expansions to safeguard the supply of electricity to all under SEV’s universal service obligation and the green course toward sustainable energy resources, as well as more self-financing of the intended expansion,” the power grid company stated.
“Refinancing of a large part of current financing debt and new project financing for the forthcoming pumped storage system shall be completed as soon as possible and efforts are underway to achieve this no later than the end of 2021.”