The annual accounts and annual report were adopted at the Annual General Meeting Friday 23 April 2021.
SEV’s financial result for 2020 was a profit of DKK 49.8 million after taxation. This represents a slightly lower result, compared with the overall activity of SEV during the year. 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.
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.
Oil continues to be a major expense of SEV, and total oil consumption was about DKK 165 million in 2020.
Historically, this is a record figure in a year both in quantity and cost. 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.
Five sustainable energy sources fed the grid in 2020
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 of Suðuroy were erected and commissioning started in 2020. This is the first new wind farm in the Faroe Islands since Húsahagi wind farm was inaugurated in 2014. The wind farm 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% of demand could be met with wind energy when conditions suit.
The windfarm project at Porkeri will place Suðuroy at the head of the line in Faroese green energy.
However, total sustainable energy production in 2020 only amounted to 38.7% 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.
The goal remains to reach 100% sustainable onshore electricity production by 2030.
Annual report and annual accounts