Norway Plans Massive Increase in Electricity Consumption. It's the Result of Climate Policy
The Norwegian Water Resources and Energy Directorate (NVE) has published an analysis of the impact of climate policy on the energy market up to 2035. Electricity consumption will increase by 23 TWh in the baseline scenario, and additional government climate policy measures will raise it by another four TWh.
Electrification in Norway is progressing. It will include, among others, transport and the extraction industry.
Fot. Arne Hammersland/NVE
The NVE analysis is based on long-term energy market forecasts, taking into account approved climate policy regulations. Electricity consumption in Norway is expected to increase by 23 TWh by 2035 compared to the baseline level. This results from the electrification of the transport sector and building heating.
Inga Nordberg, director of the energy department at NVE, indicated that the forecasts are based on 30-year average data. Additional climate measures from the government plan will raise total consumption by four TWh.
Inga Nordberg, director of the energy department at NVE, indicated that the forecasts are based on 30-year average data. Additional climate measures from the government plan will raise total consumption by four TWh.
How the Climate Plan Will Affect Energy Consumption
The Norwegian government's climate plan introduces new virkemidler, or policy instruments promoting emission reductions. The measures include further replacing fossil fuels with electricity in industry and transport. As a result, electricity demand will increase by four TWh. NVE emphasizes that such changes will affect the country's energy balance.
The agency examined a scenario of full implementation of measures from the Environmental Protection Agency's analysis (2025). This variant would increase energy consumption by an additional 17 TWh above the baseline scenario. The price of electricity would then rise by about 20 øre per kWh in an average year. Average prices in Norwegian zones would still be lower than in Europe.
The agency examined a scenario of full implementation of measures from the Environmental Protection Agency's analysis (2025). This variant would increase energy consumption by an additional 17 TWh above the baseline scenario. The price of electricity would then rise by about 20 øre per kWh in an average year. Average prices in Norwegian zones would still be lower than in Europe.
Over 90 percent of electricity in the land of fjords comes from hydropower plants.Photo: Adobe Stock, standard license
Climate Policy: This Is What Electricity Prices Will Look Like in Norway
Energy prices in Norway will remain lower than in most European countries thanks to flexible production from hydropower plants. In the scenario including the climate plan, the average electricity price in 2035 will be 55-65 øre per kWh in an average year. Additional policy instruments will cause an increase of 4-5 øre per kWh compared to the baseline scenario.
Prices will fluctuate depending on external factors such as gas prices and dependence on the European market. An energy crisis is not expected, due to the flexibility resulting from the large share of renewable sources.
Prices will fluctuate depending on external factors such as gas prices and dependence on the European market. An energy crisis is not expected, due to the flexibility resulting from the large share of renewable sources.
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