Norwegian Government Published White Paper on Energy Policy

hydro power
Editorial
April 18, 2016OLAV JOHAN BOTNEN

The Norwegian government released a new long-term energy plan until 2030 on Friday 15 April 2016. The new plan is due for approval in the Parliament in the coming 2-3 months. The new plan strengthens the role of hydropower as the main source of electricity generation in Norway, speeds up licensing processes and focuses on capacity upgrades.

The government wants to exit the Swedish-Norwegian elcert-scheme after 2021, due to its negative effects on the power balance, power prices and income for existing hydropower generators. In our Nordic LTP reports this perspective is already taken into account, therefore no new elcert-projects are included after 2021 and only small upgrades on existing hydropower plants have been considered.

Stronger integration with other energy markets is important to maintain the value of Norwegian renewable resources. Therefore, the government aims to increase connections with European energy markets. The regulatory framework will be changed so that others than the state-owned TSO Statnett may own and operate interconnectors, according to yesterday’s governmental press release.

In our Nordic Long-term Prognosis we have included a second Norway-UK cable link project, the North Connect project, which becomes operational from the end of 2023. The North Connect company plan for fulfilling the project is due in late 2022, but the TSO Statnett de-facto existing monopoly may delay this project. If the new long-term plan is approved, we may introduce the cable link from the end of 2022 according to the North Connect plan.

The newly released long-term plan supports increased power consumption from new industries, like smelters and datacentres, as well as the heating and transportation sector, to tighten the oversupplied power balance. This development is already included in our Nordic LTP reports as a projection of the development in the Norwegian power consumption.

If you have any questions, feel free to send an email to ojb@wattsight.com.

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