Group history

Vattenfall has come a long way since its beginnings in Sweden more than a century ago.

Deregulation has resulted in substantial changes in the constitution and operation of the energy industry, and the free market has encouraged and driven the development of new products and services.

1909-1992 A multifaceted energy company
1992–1996 Open market
1997–2009 International expansion, climate in focus

1909-1992 A multifaceted energy company

After a decade of preparatory work, Vattenfall was founded in 1909 through the restructuring of Trollhätte kanal- och vattenverk. The aim was to exploit the national fall rights to produce electricity.

The first hydropower stations – Olidan (River Göta), Porjus (River Lule) and Älvkarleby (River Dalälven) – were primarily built to supply power to the railways and surrounding industries.

The twentieth century was a period of rapid technological and industrial development and significant social changes. National, local and private energy companies operated side by side on the Swedish power market. As a state-owned company, Vattenfall was a strong and leading force in the provision of energy and technological development.

Up until the 1970s hydropower was the main source of energy and platform for industrialisation in Sweden. The whole of Sweden was electrified and linked together in a main grid. The large hydropower plant at Harsprånget was officially opened in 1951 along with a 400 kV cable link to Hallsberg, which was the first of its kind in the world.

In the 1970s and 80s, hydropower was complemented by nuclear energy, which dramatically reduced Sweden’s dependence on imported oil and coal. An experimental heavy water reactor, powered by unenriched Swedish uranium was trialled at Ågesta nuclear district heating plant south of Stockholm. Nuclear power was brought into commercial use in the 1970s, at Ringhals and followed a few years later by Forsmark.

The political debate on nuclear energy in the 1970s and 80s lead to increasing interest in the development of biofuels and wind power. Vattenfall invested in developing technology for large-scale wind farms, primarily at demonstration facilities on the Baltic island of Gotland.
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1992–1996 Open market

The EU directive on opening up electricity markets to competition created new opportunities for international business and acquisitions. Before this, power companies had mainly expanded through technological advances and increasing energy needs on geographically well-defined markets. Now new markets were opening up with competition from other international organisations.

In 1992 Vattenfall was restructured as a limited company. As part of this restructuring, canal operations and Svenska Kraftnät (the Swedish national grid) became state-owned utilities with responsibility for the national grid and readiness planning for the entire power industry.

The Nordic region became a single electricity market in 1996 with open competition. Vattenfall acquired several companies, including network operators in Finland and also expanded outside the Nordic countries by opening an office in Hamburg. Vattenfall launched a brand building campaign to better profile and raise awareness of the company amongst different interest groups and the general public.
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1997–2009 International expansion, climate in focus

A strategy for international growth was established and Vattenfall acquired companies and other assets in German, Poland, Finland and other countries and integrated them into an international group. Many of these companies have rich traditions and histories dating back as far, if not further than the parent company. In 2005 Vattenfall also became an important presence on the Danish market through acquisitions.

The various companies within the group were brought together under the Vattenfall brand umbrella. Vattenfall appreciated the importance of the climate issue at an early stage and took decisive steps to combat climate change, through both substantial investments in renewing the energy system and by taking the lead in the industry and corporate world to implement specific measures to combat climate change. The climate manifesto has now been signed by over 240,000 people.

Our long-term climate policy has been defined in our strategic orientation Making electricity clean. This also summarises Vattenfall’s climate vision – to be climate neutral by the year 2050.

Major acquisitions in Denmark and Great Britain and the construction of the 48 turbine Lillgrund offshore wind farm between Sweden and Denmark heralded a substantial investment in the expansion of wind power. Major investments are also being made in developing other renewable production, including more efficient hydropower, biofuels and wave power.

Carbon Capture and Storage (CCS) technology is another cornerstone in the Vattenfall strategy. The world’s first pilot installation based on oxyfuel technology was officially opened at Schwarze Pumpe in Germany. Preparing larger demonstration installations in Germany and Denmark is the next step in making this technology commercially viable.

Replacing ageing coal fired power stations with modern and more efficient coal-fired power stations is one way of reducing emissions – until CCS technology is proven. The planned hard coal-fired combined power and heating plant at Moorburg should secure a reliable energy supply to Hamburg and result in lower carbon dioxide emissions per kWh.

Vattenfall also views nuclear power as a necessary source of energy to reduce emissions of carbon dioxide. Vattenfall is updating its nuclear power stations with the emphasis on putting safety first. To this end, Vattenfall has appointed a Chief Nuclear Officer (CNO) and established a Nuclear Safety Council.

Today’s Vattenfall is a European company with some 39,000 employees. In 2009 Vattenfall bid for the Dutch energy company Nuon. Vattenfall is acquiring an initial 49 percent of the shares in Nuon, and will purchase the remaining 51 percent over the next six years.
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