WEBVTT - Will Trump's 100th Day Be Greeted With a Shutdown?

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<v Speaker 1>Welcome to the Bloomberg p m L Podcast. I'm pim Fox.

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<v Speaker 1>Along with my co host Lisa Bramowitz. Each day we

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<v Speaker 1>bring you the most important, noteworthy, and useful interviews for

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<v Speaker 1>or the trading floor. Find the Bloomberg p m L

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<v Speaker 1>Podcast on Apple Podcasts, SoundCloud, and Bloomberg dot com. Are

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<v Speaker 1>we facing another government shutdown in the US? The last

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<v Speaker 1>government shutdown was in two thousand thirteen, and now it

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<v Speaker 1>appears we may be heading for yet another one. Laura

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<v Speaker 1>Littvin covers the issues for us. She is the Bloomberg

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<v Speaker 1>News congressional reporter. Laura, thank you so much for joining us.

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<v Speaker 1>I want to just start with a better understanding of

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<v Speaker 1>what exactly the deadline is that we're coming up against

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<v Speaker 1>that could result in a government shutdown. Uh the deadline

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<v Speaker 1>is we believe it's two a m. Saturday. And UH

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<v Speaker 1>at this point, both sides are getting dug in. We

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<v Speaker 1>had both repellic. What is the deadline is it? Is

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<v Speaker 1>it that the sort of funding is up, but they

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<v Speaker 1>have to extend it a certain amount. I mean, what

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<v Speaker 1>is the accepted corect if the government? Uh, the agencies,

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<v Speaker 1>almost all of them have not been funded to the

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<v Speaker 1>remainder of the fiscal year. And if the deadline has

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<v Speaker 1>reached and they don't have a continuation of funding a

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<v Speaker 1>short term stop gap for something, if they want to

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<v Speaker 1>continue their talks and aren't done with a full bill,

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<v Speaker 1>then we had to see another shutdown, just like the

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<v Speaker 1>Steen that was, of course a very extended sixteen day one. Uh.

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<v Speaker 1>You know, it seems more likely than not that we

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<v Speaker 1>would have some kind of a temporary extension. That's what

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<v Speaker 1>both sides are saying. Laura, Laura, could you just put

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<v Speaker 1>this in a political context, because boy, this is you

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<v Speaker 1>know what they say, deja vu all over again. I mean,

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<v Speaker 1>after a while the public gets tired of hearing about this.

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<v Speaker 1>You're bringing out Yogi Bear for this. I like it.

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<v Speaker 1>Maybe he could, maybe he could fix what's going on

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<v Speaker 1>in the government. Well, there's um a lessons interest in

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<v Speaker 1>shutting the government down amongst some of the conservative Republicans

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<v Speaker 1>who drove the last one. But there and there's also

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<v Speaker 1>there's what's going on right now is a bit of

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<v Speaker 1>a disconnect between the White House and Republicans in the Capital. Republicans,

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<v Speaker 1>the leaders in both chambers are really trying have been

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<v Speaker 1>working in recent weeks overseeing some talk that has just

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<v Speaker 1>been between both parties on the Hill and it's not

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<v Speaker 1>really involved the White House that much. And then the

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<v Speaker 1>White House last Thursday started stepping in omb Director Mulvaney

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<v Speaker 1>demanding funding for the border ball, which President Trump has

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<v Speaker 1>requested as part of a supplemental budget request. On the Hill,

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<v Speaker 1>they would rather take those and other tough issues like

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<v Speaker 1>planned parenthood funding and other things and not deal with

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<v Speaker 1>those right now, just have a straight funding bill. Laura,

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<v Speaker 1>I'm glad you mentioned the law because over the weekend

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<v Speaker 1>I was reading a variety of articles in which they

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<v Speaker 1>kind of described how there are neither Republican nor Democrat

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<v Speaker 1>leaders in any of the border states that would actually

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<v Speaker 1>have the wall. None of them wanted. That's a real

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<v Speaker 1>issue here this week. That's really kind of the backdrop,

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<v Speaker 1>I think, is that you have a president who promised

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<v Speaker 1>during the campaign that he would build a border wall,

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<v Speaker 1>and you have Republicans in the capital all along have

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<v Speaker 1>been poor an approach. That's their long standing position, which

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<v Speaker 1>is they want to see more money for border security,

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<v Speaker 1>that they want something that's more flexible that might involve

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<v Speaker 1>sensing drone, more border patrol agents, things like that, and

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<v Speaker 1>maybe some concrete reinforced areas, but not that's not really

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<v Speaker 1>their primary goal here. And so there's that, and then

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<v Speaker 1>there's also the question of whether people feel it should

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<v Speaker 1>be about immediate and you see members of the Freedom Caucus,

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<v Speaker 1>members from Texas who don't seem to be showing very

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<v Speaker 1>much of an appetite to address any of this at

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<v Speaker 1>this time when they are going to be turning around

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<v Speaker 1>and talking about next physical year or sudget almost immediately,

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<v Speaker 1>and what will drest it done? Well? But Laura, I mean,

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<v Speaker 1>isn't this just always an exercise in kicking the can

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<v Speaker 1>down the road? I mean, are we really expecting something comprehensive?

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<v Speaker 1>Why can't they just sort of renew things as they

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<v Speaker 1>are before, you know, proposing something more comprehensive and getting

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<v Speaker 1>it through. I mean, why isn't that not just sort

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<v Speaker 1>of the obvious go to thing. Well, I think what

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<v Speaker 1>happens sometimes is that you can see where it's probably

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<v Speaker 1>going to go, and then it takes them a bit

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<v Speaker 1>of wrestling to get there. And I think we're maybe

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<v Speaker 1>one or two away from doing something just like what

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<v Speaker 1>you describe which is something fairly close to current levels

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<v Speaker 1>of something it's short from extension, followed by something that

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<v Speaker 1>will have some re juggled priorities that nothing particularly drastic,

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<v Speaker 1>because it has to be by part of them. You

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<v Speaker 1>not only need eight votes in the Senate to get

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<v Speaker 1>sixty votes to overcome a filibuster, because Republicans have just

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<v Speaker 1>fifty two votes, but then the House you can almost

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<v Speaker 1>bank on the Conservative Freedom Caucus Republicans not wanting to

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<v Speaker 1>vote for any bill like this, regardless of border funding

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<v Speaker 1>and the event. So you need some democratic support and

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<v Speaker 1>that's what they're rustling, is right. And you also you

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<v Speaker 1>need something to keep the markets awake because people can

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<v Speaker 1>now start worrying about a government shutdown. Can you just

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<v Speaker 1>put into perspective what a government shutdown actually would look

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<v Speaker 1>like and what the potential consequences would be on a

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<v Speaker 1>broader scale, Well, you would have UM, almost all of

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<v Speaker 1>the agencies have not had their funding approved, so you

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<v Speaker 1>have everything shut down, from you know, the National Park

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<v Speaker 1>Service to UM, you know, various agency work. UM. You know,

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<v Speaker 1>it's meaning that nobody would go to work and no

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<v Speaker 1>one would get paid. There's some provisions for dealing with

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<v Speaker 1>people who have really important emergency related type jobs that

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<v Speaker 1>do work, and they in the last time that's happened,

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<v Speaker 1>I remember them doing some like back pay for people

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<v Speaker 1>and working out some things. But if you remember it was,

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<v Speaker 1>you know, things are pretty much shut down. Do uh

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<v Speaker 1>do members of Congress and their staffs? Do they continue

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<v Speaker 1>to get paid? Um? But I've got to remember from

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<v Speaker 1>the last one, I do remember that some of them

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<v Speaker 1>were even shutting down. Uh, a lot of their staffers were.

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<v Speaker 1>I think they weren't because at least their staffers weren't,

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<v Speaker 1>because some people there were a lot of complaints from

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<v Speaker 1>constituents that people weren't even answering the phones when they

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<v Speaker 1>were calling their congressmen to complain about it. Yeah, you know,

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<v Speaker 1>it's it's striking to me that the deadline is coming

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<v Speaker 1>up is going to also coincide with President Trump's one

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<v Speaker 1>hundredth day in office, and the symbolism of that cannot

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<v Speaker 1>have evaded him. How invested is he in making sure

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<v Speaker 1>that we do not get the worst case outcome in

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<v Speaker 1>this case? That's the that's a million dollar question right now,

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<v Speaker 1>and no one can tell just how willing he is

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<v Speaker 1>going to be to push this all the way over

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<v Speaker 1>the brink. On the one hand, if if they forestalled

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<v Speaker 1>or shutdown and do it, even if it's just doing

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<v Speaker 1>a stop gaps something pushing this off for a week,

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<v Speaker 1>he can say he did something that Presidental Lindennis, you

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<v Speaker 1>know President Obama had a shut down. He can say

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<v Speaker 1>I was able to keep the government going. But at

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<v Speaker 1>the same time, his supporters feel very strongly. The people

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<v Speaker 1>who voted for President from feel so strongly about a

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<v Speaker 1>border wall, horror wall. Immigration issues are one of their

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<v Speaker 1>cop issues. And he's already planned a rally in Pennsylvania

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<v Speaker 1>just coming Saturday night, said going to the White House

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<v Speaker 1>Correspondent Association, He's taking off and going a dinner. He's

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<v Speaker 1>going to Pennsylvania's He's holding a rally. And it has

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<v Speaker 1>a lot of people wondering is he planning on pulling

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<v Speaker 1>out all the stops on the wall and then holding

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<v Speaker 1>a rally. No one, No one knows, And so that's

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<v Speaker 1>the big wild card in all of those. Well, we'll

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<v Speaker 1>have to wait and see what happens. And I know

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<v Speaker 1>you're going to keep us up to date on it.

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<v Speaker 1>I didn't know maybe Pennsylvania. I don't think they get

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<v Speaker 1>in the wall though, But that's okay. I don't know.

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<v Speaker 1>Maybe Pennsylvania and New York said, I don't know. Anyway,

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<v Speaker 1>I want to appreciate it. Thanks very much. Laura Littvin

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<v Speaker 1>is our Bloomberg News congressional reporter joining us from I

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<v Speaker 1>believe she's in the Senate Press Gallery today, So thanks

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<v Speaker 1>very much for being with us. We're broadcasting from the

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<v Speaker 1>the Future of Energy Summit. It's all powered by Bloomberg

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<v Speaker 1>New Energy Finance. We are here broadcasting live from the

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<v Speaker 1>two seventeen New York Future of Energy Summit, which is

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<v Speaker 1>powered by Bloomberg New Energy Finance. And I'm honored to

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<v Speaker 1>bring in Carl Pope. He's principal advisor for Inside Straight Strategies.

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<v Speaker 1>He also is the former head of the Sierra Club,

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<v Speaker 1>and he's out with a new book which is called

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<v Speaker 1>Climate of Hope, How Cities, Businesses and Citizens Can Save

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<v Speaker 1>the Planet, which is co authored by Michael Bloomberg, former

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<v Speaker 1>Mayor of New York City and the founder of Bloomberg LP. Carl,

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<v Speaker 1>We're so happy to have you join us today. I

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<v Speaker 1>wanted just to start before we get into what we

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<v Speaker 1>can be doing to mitigate uh man made climate change.

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<v Speaker 1>Has your hope's proceeded since the latest US election, and

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<v Speaker 1>given some of the rhetoric that has come out of

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<v Speaker 1>the current presidential administration, well, I think we obviously have

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<v Speaker 1>a new barrier to overcome in the attitude of the

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<v Speaker 1>new administration in Washington. On the other hand, if I

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<v Speaker 1>look at what's been happening in the rest of the world,

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<v Speaker 1>my hope is greater than it was before election day.

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<v Speaker 1>The fact is, we have a very very powerful tail

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<v Speaker 1>wind pushing us towards climate solutions in the form of

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<v Speaker 1>city leadership, in the form of technological innovation, in the

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<v Speaker 1>form of having a company as mainstream is Budweiser Beer

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<v Speaker 1>decide that they really need to go one dent clean energy.

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<v Speaker 1>That's not the kind of announcement I would have expect

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<v Speaker 1>it even a year ago. So I'm actually more hopeful,

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<v Speaker 1>although I'm really not too hopeful when to go to Washington,

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<v Speaker 1>d C. So I tried to avoid it. Well Mr Mr, Okay,

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<v Speaker 1>we won't make you go there. But you know, obviously,

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<v Speaker 1>the one of the themes in your book has to

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<v Speaker 1>do with cities. So I'm wondering what should cities and

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<v Speaker 1>municipalities be doing, not only in terms of let's say

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<v Speaker 1>the clean energy agenda. But there's all the revenue that

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<v Speaker 1>currently flows from the energy generation business, maybe call it

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<v Speaker 1>a legacy business. All that revenue still flows to the municipalities.

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<v Speaker 1>What happens if that revenue starts to dry up because

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<v Speaker 1>people put solar panels on their roof or they are

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<v Speaker 1>no longer going to be driving as much, So that

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<v Speaker 1>means that the taxes paid for improving highways decreases. What

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<v Speaker 1>what are some of the challenges. Well, one of the

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<v Speaker 1>things that is actually happening is that more and more

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<v Speaker 1>American cities are moving from legacy fossil fuels to innovative

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<v Speaker 1>wind and solar. The reason they're moving, for the most part, frankly,

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<v Speaker 1>is not the climate. The reason they're moving is it

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<v Speaker 1>saves their customers money. And if a city can give

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<v Speaker 1>its businesses and it's red and it's cheaper electricity, that

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<v Speaker 1>is very good for economic development. Let me tell you,

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<v Speaker 1>mayors love that. Similarly, we just saw an announcement by

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<v Speaker 1>twenty cities that they are putting out a joint tender,

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<v Speaker 1>a bid trying to buy a hundred thousand electric vehicles

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<v Speaker 1>because they understand if they buy their electric vehicles together,

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<v Speaker 1>they'll be able to get a better price. Volume drives

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<v Speaker 1>down cost. And second, when they go electric, all of

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<v Speaker 1>a sudden, they don't need to spend as much money

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<v Speaker 1>buying diesel or gasoline, and diesel and gasoline do not

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<v Speaker 1>come from inside cities those that's money that has to

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<v Speaker 1>be sent somewhere else. So cities are realizing that a

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<v Speaker 1>clean energy future is an energy future in which more

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<v Speaker 1>of the dollars that are generated in that city stay

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<v Speaker 1>to the benefit of that city. That's one of the

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<v Speaker 1>major things driving mayors forward. Just to follow up there

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<v Speaker 1>having to do with cities, do you believe that things

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<v Speaker 1>like congestion charges and offering free parking for all electric

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<v Speaker 1>vehicle is something that all cities should embrace, Well, all

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<v Speaker 1>cities shouldn't embrace probably any one solution because every city

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<v Speaker 1>is different. My partnership with Mike Bloomberg actually began as

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<v Speaker 1>an effort to implement congestion pricing is a way of

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<v Speaker 1>financing mass transit and Lower Manhattan. We didn't get there.

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<v Speaker 1>So there is resistance to ideas like congestion pricing, even

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<v Speaker 1>in a city is sophisticated as New York, although really

0:12:24.120 --> 0:12:26.640
<v Speaker 1>the problem was in New York. The problem with state

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<v Speaker 1>government in Albany that wouldn't give Mayor Bloomberg permission to

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<v Speaker 1>do that. And even today New York's transit system still

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<v Speaker 1>needs the money that would have been raised by congestion pricing.

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<v Speaker 1>I think the key thing to understand, though, is every

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<v Speaker 1>city has its own unique set of problems and its

0:12:44.360 --> 0:12:47.560
<v Speaker 1>own unique set of opportunities, and you need to look

0:12:47.559 --> 0:12:50.679
<v Speaker 1>at the problems, look at the opportunities, pair them up,

0:12:51.120 --> 0:12:54.360
<v Speaker 1>and move forward. One of the things that's frankly depressing

0:12:54.400 --> 0:12:57.760
<v Speaker 1>about Washington is Washington is looking to the rear view mirror.

0:12:58.280 --> 0:13:01.520
<v Speaker 1>Washington is trying to make a mayor America great by

0:13:01.559 --> 0:13:05.720
<v Speaker 1>holding onto yesterday's technologies. Cities don't have that. Luxury cities

0:13:05.720 --> 0:13:08.440
<v Speaker 1>are not competing to be the home of the next

0:13:08.440 --> 0:13:11.679
<v Speaker 1>bug equipped manufacturer. Cities are competing to be the home

0:13:11.720 --> 0:13:16.000
<v Speaker 1>of the next electric car dealership. Right Well, Carl, is

0:13:16.000 --> 0:13:18.880
<v Speaker 1>there anything that's currently going on in any particular city

0:13:18.920 --> 0:13:21.800
<v Speaker 1>that you can point to as something that is an

0:13:21.800 --> 0:13:25.160
<v Speaker 1>optimistic development that you think should serve as a model. Sure,

0:13:25.200 --> 0:13:27.360
<v Speaker 1>I'm gonna point to Salt Lake City, and I'm gonna

0:13:27.400 --> 0:13:30.520
<v Speaker 1>point to Salt Lake City because it is after all,

0:13:30.640 --> 0:13:33.720
<v Speaker 1>the largest city in the most republican state in the nation,

0:13:33.800 --> 0:13:37.160
<v Speaker 1>so you can't say it's Berkeley or even New York City.

0:13:37.480 --> 0:13:39.679
<v Speaker 1>Salt Lake City has announced that it is going to

0:13:39.800 --> 0:13:44.320
<v Speaker 1>source one hundred percent of its electricity from renewables, and

0:13:44.440 --> 0:13:48.319
<v Speaker 1>Salt Lake City has the fastest growing mass transit capacity

0:13:48.679 --> 0:13:51.800
<v Speaker 1>of any large city in North America. And Salt Lake

0:13:51.840 --> 0:13:55.760
<v Speaker 1>City is doing that because the people, the residents care

0:13:55.760 --> 0:13:58.280
<v Speaker 1>about the quality of their life. They want to have

0:13:58.320 --> 0:14:02.679
<v Speaker 1>a dynamic economy. Used to be dependent on mining and

0:14:02.760 --> 0:14:07.560
<v Speaker 1>extraction industries. Now they're dependent on knowledge and invention industries.

0:14:08.080 --> 0:14:11.160
<v Speaker 1>That's the way to the future. And it's not just

0:14:11.240 --> 0:14:14.720
<v Speaker 1>Salt Lake City. The first the first city in the

0:14:14.800 --> 0:14:19.400
<v Speaker 1>United States to go on renewable was Georgetown, Texas, and

0:14:19.440 --> 0:14:22.320
<v Speaker 1>the mayor of Georgetown had to explain, folks, I'm not

0:14:22.360 --> 0:14:25.400
<v Speaker 1>doing this because I'm green. I mean, Al Gore didn't

0:14:25.440 --> 0:14:27.960
<v Speaker 1>come and take over our city. I'm doing this because

0:14:28.240 --> 0:14:32.200
<v Speaker 1>it saves money, cleaner, cheaper, and what's not the like?

0:14:33.400 --> 0:14:35.840
<v Speaker 1>All right, thanks very much. Carl Pope as a principal

0:14:35.880 --> 0:14:40.040
<v Speaker 1>advisor inside a Straight Strategies. He is also the former

0:14:40.080 --> 0:14:43.840
<v Speaker 1>executive director and chairman of the Sierra Club, and he

0:14:44.080 --> 0:14:46.600
<v Speaker 1>is the co author of a new book entitled Climate

0:14:46.720 --> 0:14:50.680
<v Speaker 1>of Hope, How Cities, businesses, and citizens Can Save the

0:14:50.680 --> 0:14:53.120
<v Speaker 1>Planet that is co authored also by former New York

0:14:53.160 --> 0:14:57.240
<v Speaker 1>City Mayor Michael Bloomberg. Michael Bloomberg is the founder and

0:14:57.320 --> 0:15:09.240
<v Speaker 1>majority owner of Bloomberg Peak. We want to take a

0:15:09.240 --> 0:15:11.640
<v Speaker 1>moment to let you know about something new from Bloomberg.

0:15:11.880 --> 0:15:14.120
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0:15:14.200 --> 0:15:17.320
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0:15:20.800 --> 0:15:23.440
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0:15:23.480 --> 0:15:26.200
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0:15:36.480 --> 0:15:46.760
<v Speaker 1>at Bloomberg dot com slash lens. We are broadcasting from

0:15:46.800 --> 0:15:49.920
<v Speaker 1>the future of energy some but it's all powered by

0:15:50.000 --> 0:15:52.880
<v Speaker 1>Bloomberg and New Energy Finance. And here to tell us

0:15:52.920 --> 0:15:56.280
<v Speaker 1>more about energy is Alka Lunt, the President and the

0:15:56.360 --> 0:15:59.360
<v Speaker 1>chief executive of Statenet, and he joins us here at

0:15:59.360 --> 0:16:01.200
<v Speaker 1>the conference rate to have you with us. Thanks for

0:16:01.280 --> 0:16:03.520
<v Speaker 1>coming in. Um. You know, I wonder if you could

0:16:03.560 --> 0:16:05.480
<v Speaker 1>just give people a little bit of your background because

0:16:05.480 --> 0:16:09.160
<v Speaker 1>they may not know about stating net and Norwegian Company

0:16:09.280 --> 0:16:11.760
<v Speaker 1>and the role that it plays not just in Norway

0:16:11.800 --> 0:16:16.800
<v Speaker 1>but throughout the world when it comes to energy generator transmission.

0:16:17.000 --> 0:16:19.200
<v Speaker 1>Thank you very much. Stopping that is the National Grid

0:16:19.200 --> 0:16:22.640
<v Speaker 1>Company of Norway. We are basically running the central ridd

0:16:23.000 --> 0:16:26.800
<v Speaker 1>for the hold of the country. We have only renewable

0:16:27.120 --> 0:16:31.160
<v Speaker 1>production in Norway, so we were very happy to do that. Uh.

0:16:31.160 --> 0:16:35.480
<v Speaker 1>And that hydro power which we have enables us to

0:16:36.120 --> 0:16:40.160
<v Speaker 1>move both production from one time to the other and

0:16:40.560 --> 0:16:43.840
<v Speaker 1>do that by interconnecting our system to our neighboring countries.

0:16:44.640 --> 0:16:47.760
<v Speaker 1>So you know, one thing that people talk about with renewables,

0:16:47.800 --> 0:16:50.320
<v Speaker 1>one big problem is you can't really store it the

0:16:50.360 --> 0:16:52.680
<v Speaker 1>same way you can take oil and put it on

0:16:52.720 --> 0:16:55.840
<v Speaker 1>a tanker and float it out in the Mediterranean. Uh.

0:16:55.880 --> 0:16:58.280
<v Speaker 1>How have you solved this problem? Because you're you're sort

0:16:58.280 --> 0:17:00.840
<v Speaker 1>of touching on it but being explicitly please about how

0:17:01.120 --> 0:17:04.600
<v Speaker 1>exactly this sort of connect Those ideas are the idea

0:17:04.600 --> 0:17:10.320
<v Speaker 1>of storing renewables versus transmitting them. So hydro is a

0:17:10.520 --> 0:17:13.560
<v Speaker 1>is a great source. You can open the valve if

0:17:13.560 --> 0:17:15.160
<v Speaker 1>you want it and you need it, and you can

0:17:15.440 --> 0:17:17.400
<v Speaker 1>stop it if you don't need it. So we through

0:17:17.520 --> 0:17:23.320
<v Speaker 1>hydro reservoirs we can collect water during rainy periods and

0:17:23.840 --> 0:17:26.640
<v Speaker 1>let the water run during dry periods. So that's basically

0:17:26.640 --> 0:17:29.480
<v Speaker 1>a way of storying, and that's how we solve our

0:17:29.480 --> 0:17:33.080
<v Speaker 1>own demand because sometimes it doesn't rain also in Norway,

0:17:34.320 --> 0:17:37.359
<v Speaker 1>so we need that for our own system. But we

0:17:37.480 --> 0:17:41.359
<v Speaker 1>also have interconnected our grid to the Danish, the Dutch

0:17:41.520 --> 0:17:43.280
<v Speaker 1>and the German and going to do it to the

0:17:43.280 --> 0:17:46.680
<v Speaker 1>German and the UK grid. Through those interconnections you can

0:17:46.760 --> 0:17:51.200
<v Speaker 1>move this storage capacity we have also down to those countries.

0:17:51.320 --> 0:17:55.320
<v Speaker 1>If you look at Denmark, they've been able to install

0:17:55.880 --> 0:17:59.280
<v Speaker 1>a huge amount of wind power and are running from

0:17:59.359 --> 0:18:03.160
<v Speaker 1>time to time like sixty or seven of their demand

0:18:03.320 --> 0:18:06.479
<v Speaker 1>is covered by wind and the remaining parts would then

0:18:06.520 --> 0:18:10.840
<v Speaker 1>actually come through the interconnectors from Norway. Just to be

0:18:11.000 --> 0:18:13.480
<v Speaker 1>very clear about what this is, it sort of flips

0:18:13.480 --> 0:18:15.440
<v Speaker 1>the idea of storage on its head. It's not that

0:18:15.440 --> 0:18:17.879
<v Speaker 1>you're actually storing, and it's at the electrical current is

0:18:17.920 --> 0:18:20.160
<v Speaker 1>going somewhere at all times, but it's going to where

0:18:20.160 --> 0:18:22.719
<v Speaker 1>it need. It's needed exactly, and so it's not necessarily

0:18:22.720 --> 0:18:25.040
<v Speaker 1>storing in a way that a lot of people think

0:18:25.200 --> 0:18:27.200
<v Speaker 1>of storage, which is you put it in a box

0:18:27.200 --> 0:18:29.439
<v Speaker 1>and you hold it till later. Well, yes or no.

0:18:29.960 --> 0:18:32.600
<v Speaker 1>You can imagine that the through these interconnectors in Denmark,

0:18:32.800 --> 0:18:35.880
<v Speaker 1>sometimes the wind is so strong that they produce more

0:18:35.880 --> 0:18:39.119
<v Speaker 1>wind than they need and then they basically send that

0:18:39.240 --> 0:18:41.439
<v Speaker 1>power to Norway. And what we do is that we

0:18:41.560 --> 0:18:45.399
<v Speaker 1>then stop our turbines to produce, and it means we

0:18:45.520 --> 0:18:51.480
<v Speaker 1>store the water in our reservoirs and leave it for

0:18:51.480 --> 0:18:55.360
<v Speaker 1>the next day. And even in sometimes if prices are

0:18:55.359 --> 0:18:59.960
<v Speaker 1>really low because of the oversupply wind, we would read pump.

0:19:00.160 --> 0:19:02.280
<v Speaker 1>We would pump water from a lower level to a

0:19:02.359 --> 0:19:05.639
<v Speaker 1>higher level and could then the day after reverse it

0:19:05.720 --> 0:19:10.120
<v Speaker 1>and thereby get electricity back. So basically you do actually

0:19:10.119 --> 0:19:14.200
<v Speaker 1>store in reservoirs. But a very important part here is

0:19:14.240 --> 0:19:17.000
<v Speaker 1>that you have a market which really works, because the

0:19:17.040 --> 0:19:19.520
<v Speaker 1>market gives you the signal when should I keep the

0:19:19.560 --> 0:19:21.600
<v Speaker 1>water in the reservoir, when should they let it go?

0:19:22.119 --> 0:19:25.280
<v Speaker 1>When it is electricity from wind very cheap, and I

0:19:25.320 --> 0:19:28.840
<v Speaker 1>could get that in my system and and store it

0:19:28.840 --> 0:19:30.800
<v Speaker 1>for the next day, I wonder if you could just

0:19:30.800 --> 0:19:33.160
<v Speaker 1>speak to the issue of being a state owned company,

0:19:33.280 --> 0:19:39.160
<v Speaker 1>because obviously utilities are owned in many different forms all

0:19:39.160 --> 0:19:42.600
<v Speaker 1>over the world. How does being state owned help you?

0:19:44.040 --> 0:19:47.800
<v Speaker 1>I think it's almost in the country like you actually

0:19:47.800 --> 0:19:50.119
<v Speaker 1>should say that, but it's almost a predicacit preg with

0:19:50.240 --> 0:19:54.639
<v Speaker 1>it for our the way we have functioned or or

0:19:55.480 --> 0:19:59.840
<v Speaker 1>created our markets. We have installed a completely independent system

0:19:59.880 --> 0:20:03.000
<v Speaker 1>up Rador owning the transmission system which is start meet

0:20:03.160 --> 0:20:06.400
<v Speaker 1>and it is stayed downed. So we have a very

0:20:06.400 --> 0:20:09.720
<v Speaker 1>strong mandate to take care of security supply in Norway

0:20:09.760 --> 0:20:12.760
<v Speaker 1>at any point in time and run the system at

0:20:12.800 --> 0:20:16.440
<v Speaker 1>what they call the socio economic within socio economic view

0:20:16.560 --> 0:20:20.280
<v Speaker 1>on how we do things. And that distinguishes a little

0:20:20.280 --> 0:20:24.040
<v Speaker 1>bit from the other companies who could have specific maybe

0:20:24.040 --> 0:20:29.200
<v Speaker 1>have shareholders exactly, so we we have, I would argue,

0:20:29.359 --> 0:20:32.840
<v Speaker 1>a much broader view than the individual companies which produce

0:20:33.040 --> 0:20:36.239
<v Speaker 1>and and and connect. So do you think that the

0:20:36.280 --> 0:20:39.000
<v Speaker 1>model that you're talking about the markets that you follow

0:20:39.200 --> 0:20:45.240
<v Speaker 1>could be replicated in a uh non state owned company

0:20:45.440 --> 0:20:47.720
<v Speaker 1>or do you think that it's very specific to the

0:20:47.760 --> 0:20:49.919
<v Speaker 1>model that you currently have in Norway. No, I think

0:20:49.960 --> 0:20:53.800
<v Speaker 1>you can do it. Of course, it's not the only

0:20:53.800 --> 0:20:56.240
<v Speaker 1>way to organize the market. We have also one of

0:20:56.240 --> 0:20:59.720
<v Speaker 1>our Navory countries. We have a similar company like Startnet,

0:20:59.720 --> 0:21:03.960
<v Speaker 1>which partly owned by pension funds, and its functions although

0:21:04.119 --> 0:21:06.240
<v Speaker 1>a bit different than we do. I just want to

0:21:06.240 --> 0:21:08.200
<v Speaker 1>catch your talks on something that you own. I think

0:21:08.200 --> 0:21:10.760
<v Speaker 1>about a third of nord Pool, right, nord Pool. Just

0:21:10.800 --> 0:21:13.000
<v Speaker 1>to give you a thirty second what is nordpol. Explain

0:21:13.080 --> 0:21:16.800
<v Speaker 1>to people how that's interesting. Well, as I mentioned just

0:21:16.920 --> 0:21:19.439
<v Speaker 1>a minute ago, that the markets are extremely important in

0:21:19.480 --> 0:21:22.000
<v Speaker 1>this type of system, you need the right pricing signals.

0:21:22.160 --> 0:21:26.439
<v Speaker 1>North Pole is the power exchange where all producers have

0:21:26.600 --> 0:21:31.080
<v Speaker 1>to nominate what they're going to deliver and the market

0:21:31.119 --> 0:21:33.679
<v Speaker 1>will tell what they want to ask in. The market

0:21:33.680 --> 0:21:37.480
<v Speaker 1>will clear and give prices, and those prices give the

0:21:37.600 --> 0:21:40.080
<v Speaker 1>right signals whether we should store water or we should

0:21:40.119 --> 0:21:42.320
<v Speaker 1>we should leave the water down. Thank you so much

0:21:42.359 --> 0:21:46.880
<v Speaker 1>for joining us. Truly fascinating discussion. Okay Launde is president

0:21:46.880 --> 0:21:50.639
<v Speaker 1>and chief executive as stat Net, which is Norway's power

0:21:50.760 --> 0:21:55.920
<v Speaker 1>and electric grid. Thanks for listening to the Bloomberg P

0:21:56.040 --> 0:21:59.000
<v Speaker 1>and L podcast. You can subscribe and listen to interviews

0:21:59.040 --> 0:22:03.080
<v Speaker 1>at Apple pod Casts, SoundCloud or whatever podcast platform. You prefer.

0:22:03.480 --> 0:22:07.080
<v Speaker 1>I'm pim Fox. I'm on Twitter at pim Fox. I'm

0:22:07.119 --> 0:22:10.400
<v Speaker 1>on Twitter at Lisa Abramo wits one Before the podcast,

0:22:10.440 --> 0:22:13.040
<v Speaker 1>you can always catch us worldwide on Bloomberg Radio