Strategy 2035

Hafslund recognises that climate change and loss of biodiversity are inextricably linked. The Group uses the Paris Agreement and the Kunming-Montreal Global Biodiversity Framework as the basis for its business activities. More renewable energy will be essential for achieving national and international targets to limit greenhouse gas emissions in all sectors, while energy production also requires the use of land and impacts biodiversity. To achieve the climate targets, nature needs to be protected, and preserving natural diversity requires climate change adaptation and a rapid transition to the use of more renewable energy. By working to make positive contributions to biodiversity in the development and management of renewable energy and infrastructure, Hafslund will be a driving force for the transition to the zero-emission society being realised in a manner that protects biodiversity.

Moving towards 2035 Hafslund will:

• Develop energy projects that shall have net zero loss of biodiversity from and including 2030.
• Hafslund will quantifiably improve the conditions for biological diversity from the 2023 level in the existing portfolio of facilities.
• Hafslund will use its position as customer, partner and investor to create positive ripple effects beyond our own business activities.
• Define an ambition associated with reducing the ecological footprint from own upstream and downstream supply chain by 2025.
• Reduce greenhouse gas emissions in Scope 1 and 2 by 90 per cent and Scope 3 by 50 per cent by 2030 compared to 2019.
• Construct carbon capture facilities at Oslo’s largest point emissions.

Government authorities are currently engaged in important work in developing framework conditions and measures relating to climate and nature policy in order to ensure renewable energy production while also protecting the natural environment. National goals directly and indirectly establish the framework for Hafslund’s activities. In light of the Group’s ambitious strategic goals within energy and nature towards 2035, the company will be a constructive and proactive contributor to the government’s work on the framework conditions in this area, where Hafslund demonstrates, in practice, how the Group’s common challenges can be solved. Hafslund has provided input to political processes involving energy, climate and nature, and will continue this work in 2024.

The green transition has created an enormous need for new renewable energy and more grid capacity, particularly in Eastern Norway, and the increasing scarcity of renewable energy is leading to rising energy prices.

Without increased energy production and lower price levels, Norway will not succeed in being an attractive location for new green industries and important workplaces. Hafslund will be part of the solution to achieving this and has plans to develop new renewable energy within hydropower, wind and solar in Norway and the Nordic region and contribute to more capacity on the grid.

Moving towards 2035 Hafslund will:

• Expand existing and build new hydropower
• Become a leader in the development and expansion of renewables projects within solar, wind and offshore wind in Norway and the Nordic Region
• Work to have framework conditions in place which ensure energy development that contributes to achieving climate targets

All flexible fossil energy sources in Europe’s energy mix need to be replaced with renewable energy sources to achieve the target of net zero emissions. Most of the current production technologies within renewable energy are not possible to regulate. However, the energy system needs to be in balance and this balance has to involve flexible sources or means of storage.

Hydropower acts like an enormous battery with flexible reservoir capacity. There is an increasing need for flexible power, and Hafslund will strengthen the Group’s ability to contribute to balance in the energy system.

Moving towards 2035 Hafslund will:

• Increase the ability to regulate hydropower.
• Develop solutions for aggregation and management of production, consumption and storage.
• Relieve pressure on the power grid by converting electricity to heat in buildings.
• Act faster in existing and new physical markets by using the strongest algorithms and systems system in the industry.

Society needs to be electrified. Access to renewable energy is increasing, however consumption is increasing even faster. Hafslund’s objective is to facilitate electrification that contributes to greener and smarter cities.

Hafslund is a renewable energy company that, in addition to being a major producer of renewable energy, is contributing towards providing the towns and cities of the future with central thermal energy systems and solutions that contribute to electrification and energy efficiency. Hafslund is working to establish smart digital energy solutions that contribute to efficient and simple energy consumption, as well as stable and predictable energy prices.

Moving towards 2035 Hafslund will:

• Develop the thermal energy system in Oslo and the surrounding area.
• Develop solutions within electrification and energy efficiency that create value for industry and energy efficiency.
• Focus on business concepts at the intersection between a smart city and the energy system.
• Be an active driving force for green industries and jobs in Norway.