75th Anniversary |
Empowering sustainable solutions
Elon Hägg, Head of Hydro Business at AFRY, sheds light on the company’s rich heritage, global footprint, and strategic approach to navigating the evolving hydropower landscape. From embracing sustainability to addressing industry challenges, Hägg shares insights into AFRY’s role as a key player shaping the future of hydro worldwide
Above: Elon Hägg, Vice President & Global Head of Hydro Business at AFRY
Below: Aerial view from downstream of the Nam Theun 1 RCC dam, power plant, and reservoir. AFRY was a trusted partner on the Nam Theun 1 project from the initial project development stages right through to the project management and supervision of the works until the commissioning of the hydropower plant
Could you provide some background on AFRY and its involvement in the hydropower industry? AFRY has deep Nordic roots and a rich heritage spanning various industries including process industry, energy, and infrastructure. A significant milestone in our history was the merger of two renowned companies, Pöyry and ÅF, in 2019, leading to the birth of AFRY as a new brand. With a workforce of approximately 20,000 employees operating in around 50 countries, AFRY stands as a truly global entity. AFRY boasts nearly 130 years of experience in developing hydro projects, offering a comprehensive range of services. We provide design and design review services, spanning from the early conceptual stages to tendering and detailed design phases. Our expertise encompasses various disciplines essential for hydro projects, including geotechnical, tunnelling, civil, hydrological, hydraulic, as well as social and environmental considerations. With our broad spectrum of capabilities, we integrate AFRY’s vast knowledge base into hydro projects, ensuring comprehensive and effective solutions. Our journey in hydropower dates back to the late 19th century when smaller engineering firms, primarily based in Europe, initially ventured into hydro projects. Over time, our engagement expanded beyond Europe as we witnessed the emergence of new hydro developments in different regions. This gradual international expansion allowed us to diversify our portfolio and expertise. Our Nordic roots undoubtedly influenced our early focus, but our hydro business, being a significant vertical within the energy sector, gained prominence primarily in Europe. However, as opportunities arose beyond Europe, we actively sought to expand our horizons, venturing into regions like Latin America and Southeast Asia. This strategic approach enabled us to drive development within the hydro sector across diverse global markets. There are certain countries where we are not active
due to various issues, including regulatory concerns. For instance, we have refrained from pursuing hydropower projects in Myanmar due to the prevailing situation in the country.
With decades-long engagements in regions like Latin America and Southeast Asia, do you still observe significant development in these areas? Absolutely. The energy landscape is constantly evolving, and regions like Latin America and Southeast Asia continue to witness substantial development,
50 | May 2024 |
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especially amidst the ongoing energy transition. This transition underscores the importance of hydro and other renewable sources in meeting evolving energy needs. Each region’s unique priorities shape the role of hydro, whether it’s rehabilitating existing infrastructures, building new capacities, or integrating renewable sources like solar and wind.
Considering the diverse priorities across regions, how does AFRY navigate its involvement in various aspects of the hydro sector? We adopt a versatile approach tailored to the specific needs of each region. Whether it’s rehabilitating existing hydro fleets, collaborating on new build ventures, or contributing expertise in emerging areas like pumped storage, we align our services with regional energy priorities. By doing so, we aim to play a pivotal role in driving sustainable energy transitions worldwide, catering to the diverse needs of different regions.
What is the biggest market you work in? When considering our revenue, it’s clear that our primary market lies in Europe and the Nordic region. Additionally, we maintain significant activity in Southeast Asia, where we’ve established a strong presence and identified substantial market potential. In Africa, we’re actively pursuing projects in select countries and regions that align with our commitment to sustainability initiatives, reflecting AFRY’s perspective. We’re also involved in projects in India and Latin America as well.
Do you cover both large hydro and small hydro? The major portion of our project portfolio as focused on large hydro initiatives. However, we do have areas where we’re actively involved in smaller hydro projects. For instance, here in Norway and also in Finland, we allocate a significant portion of our efforts to smaller hydro projects, which may surpass the scale of similar initiatives in other regions.
How has your work contributed to industry standards or practices? We actively engage in shaping industry standards and practices. We have developed our internal review process to ensure alignment with AFRY’s values and mission before taking on projects. This approach allows us to uphold international standards while considering local needs and perspectives. We integrate global knowledge with local expertise in the countries where we operate, collaborating closely with clients and partners to achieve the best outcomes.
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