The government is taking action to secure Norwegian electricity supply – news Norway – Overview of news from various parts of the country

– Our goal is that we should always have enough hydropower in the reservoirs and that people should always have enough electricity, says Prime Minister Jonas Gahr Støre. He points out that the need for electricity will be higher in the future. He says that hydropower is weather dependent, and not something the authorities can control. The government is therefore introducing several measures to prevent an electricity crisis: Energy producers are given statutory responsibility for contributing to security of supply. Reporting scheme for hydropower producers. Requirement that manufacturers draw up strategies to ensure security of supply. The energy authorities must supervise and have the possibility of sanctions. The authorities must be able to intervene against the producers in the event of a risk of a lack of energy, such as if there is a risk of rationing. – Electricity is like blood in the body, absolutely necessary for us to function, says Oil and Energy Minister Terje Aasland. However, there are no special guidelines for how low the water reservoirs must be filled before energy producers are required to reduce power production. Aasland says the new measures are good news for ensuring security of supply going forward. He promises that the changes will be introduced immediately, and says the situation would have been better last year if these measures had been in place then. Long period of high prices 2022 was the year when sky-high electricity prices became the norm and Statnett started talking about possible electricity rationing in the spring of 2023. The power cables to Europe were once again severely criticized. The situation also became far worse after Russia already began to cut off the gas supply to Europe in the summer of 2021, half a year before they attacked Ukraine. Both in Norway and other European countries, the concern that electricity would become a scarce good increased. In July, the government asked the power industry to conserve water, but 20 percent of power production was still exported. Statnett’s map of international connections Photo: Statnett In August, Oil and Energy Minister Terje Aasland said that the government would come up with measures during the autumn that would limit power exports when there was little water in the reservoirs. Aasland promised the Free Trade Union Movement that there would never be an electricity crisis again. But the measures have been delayed until today. In November, it became known that the degree of filling in Norwegian water reservoirs was far better and that the danger of rationing was almost gone, for this time. Not a system to lower prices The Minister of Oil and Energy points out that the new measures are not to lower electricity prices, – When it comes to the price, we have other measures that we are working on and will follow up on, says Aasland. He says that the government has now also introduced electricity subsidies for people who live in cabins. When asked by news whether limiting electricity production will not, on the contrary, lead to higher prices, Støre replies that security of supply should also lead to better prices. But the Progress Party believes the move will not reduce electricity prices. – On intake and exhalation, the Center Party has promised to take control of the power and introduce export restrictions to ensure lower electricity prices, Frps Marius Arion Nilsen, who is a member of the energy and environment committee at the Storting. Marius Arion Nilsen, parliamentary representative (Frp) Photo: Javad Parsa / NTB – The result is an awkward mechanism that will not kick in until the waterways are almost dry, says Nilsen. – The consequence will be higher electricity prices in Norway, says Per Olaf Lundteigen of the ruling party the Center Party. He goes even further than the FRP in his criticism of the government. – Because one places restrictions on production and one does not change the use of the cables without there being a particularly strained power situation, and then it becomes the logic of the market. So this will lead to permanently high electricity prices. Per Olaf Lundteigen, parliamentary representative (Sp) Photo: Allan Klo / news He believes that Norway is losing a competitive advantage vis-à-vis other countries. – There will be a permanent need for price reductions both for households and businesses above the national budget, says Lundteigen The consequence will be higher electricity prices in Norway. Because one places restrictions on production and one does not change the use of the cables without there being a particularly strained power situation, and then it becomes the logic of the market. So this will lead to permanently high electricity prices. – This is far too bad! A lot of noise for almost nothing, says Sofie Marhaug from Rødt. She is 2nd deputy chair of the energy and environment committee. Sofie Marhaug, Storting representative (Red) Photo: Ihne Pedersen – While the power companies get to take super profits from people and businesses in Norway, the government is holding yet another press conference, without the scheme being ready, says Marhaug. The government’s partner SV is also concerned about electricity prices. – Now it is urgent to put in place solutions that give people and businesses lower electricity prices. It must happen quickly, and I hope it happens when the government, following pressure from SV, sets up an electricity price committee quickly, says the party’s energy policy spokesperson Lars Haltbrekken. Lars Haltbrekken, parliamentary representative (SV) Photo: Kai Rune Kvitstein / news Will maintain exports When asked why the authorities do not limit the export of electricity instead of production, Støre answers the following about the power cables. – These are agreements that are based on mutual obligations, says Støre When asked if we have full national control over our power. – We need to import and can export, replies Støre. The Prime Minister says Norway is dependent on cooperation with other countries both politically and when it comes to security of supply. He says it is possible, but not appropriate, to stop power transmission abroad. – Norway has not chosen to do so. It is a political choice. We have chosen to have that collaboration, says Støre. I think the power industry understands social responsibility Norway had a very low level of filling in the water reservoirs last year. – We were at a historic minimum, says watercourses and energy director Kjetil Lund. A dialogue was therefore established with the energy industry, says Lund, to prevent a situation of electricity rationing. And from last summer, the industry had to report the situation to the authorities. – This has produced results. The occupancy rate increased by 24 per cent from August to November. It is the strongest increase we have ever measured. The occupancy rate is now good, says Lund. He says that it is also due to low consumption and a lot of rain, but he believes that the measures have had a disciplining effect on the industry. Lund believes the industry understands its social responsibility.



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